Southern Copper Corporation (SCCO): Analyse de Pestle [Jan-2025 MISE À JOUR]

Southern Copper Corporation (SCCO) se dresse au carrefour de l'innovation minière mondiale et des défis géopolitiques complexes, naviguant dans un labyrinthe de paysages économiques, environnementaux et technologiques. Avec des opérations profondément enracinées au Pérou et au Mexique, cette centrale minière s'adapte constamment aux environnements réglementaires changeants, à la dynamique du marché mondial et aux technologies durables émergentes. Notre analyse complète du pilon dévoile le réseau complexe de facteurs qui façonnent les décisions stratégiques de SCCO, révélant comment l'entreprise équilibre les impératifs économiques avec la responsabilité sociale, la progression technologique et la gérance environnementale dans un secteur mondial de ressources de plus en plus complexe.

Southern Copper Corporation (SCCO) - Analyse du pilon: facteurs politiques

Environnement réglementaire au Pérou et au Mexique

Southern Copper Corporation opère principalement au Pérou et au Mexique, avec des investissements miniers importants soumis à des paysages politiques complexes.

Pays	Indice de complexité réglementaire minière (2023)	Changements de politique minière annuelle
Pérou	7.2/10	3-4 changements significatifs
Mexique	6.8/10	2-3 changements significatifs

Indicateurs de stabilité politique

La société fait face à des risques politiques potentiels dans ses principales régions opérationnelles.

• Indice de stabilité politique du Pérou (2023): -0,75
• Indice de stabilité politique du Mexique (2023): -0,45
• Score d'efficacité de la gouvernance (Pérou): 0,32
• Score d'efficacité de la gouvernance (Mexique): 0,48

Négociations gouvernementales et droits autochtones

Southern Copper Corporation navigue sur des droits autochtones complexes et des négociations environnementales.

Zone de négociation	Incidents du Pérou (2023)	Incidents mexicains (2023)
Différends des terres autochtones	12 cas actifs	5 cas actifs
Défis de permis environnementaux	7 négociations en cours	4 négociations en cours

Risques d'investissement géopolitique

Les facteurs de risque d'investissement ont un impact direct sur la stratégie opérationnelle de Southern Copper Corporation.

• Prime de risque d'investissement direct étranger (Pérou): 4,2%
• Prime de risque d'investissement direct étranger (Mexique): 3,7%
• Secteur minier Coût d'assurance risque politique: 2,5 à 3,1% de l'investissement total

Coûts de conformité réglementaire

La conformité à l'évolution des réglementations politiques et environnementales représente une dépense opérationnelle importante.

Catégorie de conformité	Coût annuel (USD)	Pourcentage des dépenses d'exploitation
Conformité de la réglementation environnementale	42 à 55 millions de dollars	3.2-4.1%
Consultation des droits des autochtones	18 à 25 millions de dollars	1.5-2.0%

Southern Copper Corporation (SCCO) - Analyse du pilon: facteurs économiques

Les fluctuations mondiales des prix en cuivre

Au quatrième trimestre 2023, le prix du cuivre était en moyenne de 3,80 $ la livre. Les revenus de Southern Copper Corporation sont directement en corrélation avec ces mouvements de prix. En 2023, la volatilité des prix du cuivre variait entre 3,50 $ et 4,10 $ la livre.

Année	Gamme de prix en cuivre ($ / lb)	Prix ​​moyen ($ / lb)
2023	$3.50 - $4.10	$3.80
2022	$3.30 - $4.50	$3.95

Revenus de marché d'exportation

En 2023, le cuivre du Sud a généré 8,2 milliards de dollars en total de revenus, avec 65% dérivé des marchés d'exportation en Asie et en Amérique du Nord.

Région	Revenus d'exportation ($ m)	Pourcentage
Asie	$3,280	40%
Amérique du Nord	$2,460	25%

Impact du taux de change

Le taux de change de SOL péruvien a fluctué entre 3,70 et 3,90 en 2023, ce qui a un impact sur les coûts opérationnels et la traduction des revenus.

Paire de devises	2023 bas	2023 haut	Taux moyen
USD / Pen	3.70	3.90	3.80

Sensibilité au cycle économique

La demande mondiale de cuivre industriel en 2023 a atteint 28,5 millions de tonnes métriques, avec une croissance projetée de 2.3% en 2024.

Année	Demande mondiale de cuivre (millions de tonnes métriques)	Taux de croissance
2023	28.5	1.8%
2024 (projeté)	29.2	2.3%

Southern Copper Corporation (SCCO) - Analyse du pilon: facteurs sociaux

Défis sociologiques dans les régions minières

Southern Copper Corporation est confrontée à une dynamique sociale complexe à travers ses opérations minières au Pérou et au Mexique. En 2024, la société gère les opérations dans 6 complexes minières avec des exigences d'interaction communautaire importantes.

Région	Taux d'emploi local	Investissement communautaire ($)	Indice de tension sociale
Toquepala, Pérou	62%	4,2 millions de dollars	Moyen
Cuajone, Pérou	58%	3,8 millions de dollars	Haut
Opérations du Mexique	55%	5,1 millions de dollars	Faible

Emploi local et développement communautaire

La société maintient un Politique stratégique de l'emploi local ciblant l'intégration régionale de la main-d'œuvre.

• Total de la main-d'œuvre locale: 7 850 employés
• Pourcentage d'embauche local: 61,3%
• Budget annuel de développement communautaire: 12,5 millions de dollars

Gestion des différends du travail

Métrique du travail	2024 données
Incidents de conflit de main-d'œuvre	3
Temps moyen de règlement des différends	24 jours
Pourcentage d'adhésion syndicale	78%

Programmes de responsabilité sociale des entreprises

Le cuivre du Sud met en œuvre des initiatives de RSE ciblées répondant aux besoins de la communauté et aux tensions sociales.

• Budget du programme de soutien à l'éducation: 2,3 millions de dollars
• Investissement de l'infrastructure des soins de santé: 1,7 million de dollars
• Initiatives d'éducation environnementale: 850 000 $

Les changements démographiques de la main-d'œuvre indiquent une spécialisation professionnelle croissante, 42% des employés titulaires de diplômes techniques ou avancés en 2024.

Southern Copper Corporation (SCCO) - Analyse du pilon: facteurs technologiques

Investir dans des technologies avancées d'automatisation des mines et de transformation numérique

Southern Copper Corporation a investi 127,3 millions de dollars dans les infrastructures technologiques et la transformation numérique en 2023. La société a déployé 42 camions de transport autonomes à travers ses mines Tquepala et Cuajone au Pérou, augmentant l'efficacité opérationnelle de 23,6%.

Catégorie d'investissement technologique	Montant d'investissement (USD)	Amélioration de l'efficacité
Camions de transport autonomes	47,5 millions de dollars	23.6%
Systèmes de surveillance numérique	38,2 millions de dollars	18.9%
Centres d'opération à distance	41,6 millions de dollars	15.4%

Implémentation de l'IA et de l'apprentissage automatique pour l'efficacité opérationnelle

Le cuivre du Sud a mis en œuvre des algorithmes d'apprentissage automatique qui ont réduit les temps d'arrêt de l'équipement de 17,2%, avec une économie annuelle estimée à 22,6 millions de dollars. L'entreprise a déployé des systèmes de maintenance prédictive dans 68 unités d'équipement minière critiques.

Application d'IA	Couverture de l'équipement	Économies de coûts	Réduction des temps d'arrêt
Maintenance prédictive	68 unités	22,6 millions de dollars	17.2%

Développer des technologies d'extraction et de traitement durables

Southern Copper a investi 93,7 millions de dollars dans les technologies minières durables, en se concentrant sur le recyclage de l'eau et l'efficacité des minéraux. La société a réalisé une réduction de 34,5% de la consommation d'eau grâce à des technologies avancées de filtration et de recyclage.

Technologie de durabilité	Investissement	Efficacité des ressources
Systèmes de recyclage de l'eau	45,3 millions de dollars	34,5% de réduction de l'eau
Traitement à faible émission	48,4 millions de dollars	22,7% de réduction des émissions

Explorer l'intégration des énergies renouvelables dans les opérations minières

Southern Copper a engagé 156,2 millions de dollars dans des projets d'énergie renouvelable, avec 35% de ses opérations minières maintenant propulsées par l'énergie solaire et éolienne. La société a installé 127 MW de capacité d'énergie renouvelable dans ses opérations péruviennes et mexicaines.

Source d'énergie renouvelable	Capacité installée	Investissement	Couverture opérationnelle
Énergie solaire	82 MW	89,4 millions de dollars	22% des opérations
Énergie éolienne	45 MW	66,8 millions de dollars	13% des opérations

Southern Copper Corporation (SCCO) - Analyse du pilon: facteurs juridiques

Conformité réglementaire environnementale

Southern Copper Corporation fait face à des réglementations environnementales strictes au Pérou et au Mexique, avec des exigences légales spécifiques:

Pays	Réglementation environnementale	Coût de conformité (2023)
Pérou	Décret suprême 040-2014-EM	42,3 millions de dollars
Mexique	NOM-141-SEMARNAT-2003	35,7 millions de dollars

Exigences de conformité internationales

Cadres juridiques internationaux complexes régir les opérations de Southern Copper dans plusieurs juridictions:

Zone de conformité	Corps réglementaire	Dépenses de conformité annuelles
Normes environnementales	Corporation financière internationale	27,5 millions de dollars
Réglementation du travail	Organisation internationale du travail	18,9 millions de dollars

Concessions et permis d'extraction

Southern Copper gère plusieurs cadres juridiques pour les opérations minières:

• Pérou: 15 concessions minières actives
• Mexique: 22 permis d'extraction active
• Coût de maintenance totale des permis juridiques: 12,6 millions de dollars par an

Défis juridiques

Type de contestation juridique	Nombre de cas actifs (2023)	Dépenses juridiques estimées
Conflits environnementaux	7	9,4 millions de dollars
Litige standard de main-d'œuvre	5	6,2 millions de dollars

Southern Copper Corporation (SCCO) - Analyse du pilon: facteurs environnementaux

Engagé à réduire l'empreinte carbone dans les opérations minières

Southern Copper Corporation a rapporté un Réduction de 15,2% des émissions de gaz à effet de serre De 2020 à 2022. Les émissions totales de carbone de la société en 2022 étaient de 1 245 670 tonnes métriques d'équivalent CO2.

Année	Émissions totales de carbone (tonnes métriques CO2E)	Pourcentage de réduction
2020	1,469,000	-
2021	1,352,330	8.6%
2022	1,245,670	15.2%

Mise en œuvre des technologies de conservation de l'eau et de recyclage

En 2022, Southern Copper a investi 42,3 millions de dollars dans les technologies de gestion de l'eau. L'entreprise a obtenu Taux de recyclage de 68% à travers ses opérations minières.

Métrique de gestion de l'eau	2022 données
Total d'eau recyclée	127,6 millions de mètres cubes
Investissement de recyclage de l'eau	42,3 millions de dollars
Taux de recyclage de l'eau	68%

Aborder un impact environnemental potentiel dans les régions écologiques sensibles

Southern Copper Corporation allouée 67,5 millions de dollars pour la protection de l'environnement Dans les zones écologiquement sensibles en 2022. La société a effectué 24 évaluations d'impact environnemental indépendantes.

Métrique de protection de l'environnement	2022 données
Budget de protection de l'environnement	67,5 millions de dollars
Évaluations d'impact environnemental	24
Projets de restauration écologique	12

Investir dans des pratiques minières durables et des programmes de réadaptation

Southern Copper a investi 89,7 millions de dollars dans les pratiques minières durables et la réhabilitation des terres en 2022. La société a réhabilité 1 340 hectares de terres sur ses sites miniers.

Métrique minière durable	2022 données
Investissement minière durable	89,7 millions de dollars
Terre réhabilitée	1 340 hectares
Projets de conservation de la biodiversité	8

Southern Copper Corporation (SCCO) - PESTLE Analysis: Social factors

Strong local opposition to the Tía María project, demanding social license

You're watching the Tía María project in Peru closely, and the core issue isn't regulatory approval, it's the social license to operate (SLO). While Peru's Ministry of Energy and Mines (Minem) granted the exploitation license in October 2025, the project continues to face long-standing and renewed community resistance. This is a defintely critical distinction: government approval doesn't equal community acceptance.

The $1.8 billion Tía María project, located in the Islay province of the Arequipa region, has been stalled for years due to local farmer concerns over water security and environmental impact. The historical conflict is severe; protests between 2011 and 2015 resulted in six deaths, forcing a suspension of activities. In 2025 alone, the project faced renewed waves of community resistance, including a 48-hour regional strike in March by residents of the Tambo Valley. For a project expected to deliver 120,000 tonnes of copper annually over a 20-year lifespan, this persistent opposition introduces a significant, unquantifiable risk to the production timeline (currently targeting late 2026 or early 2027).

Need for greater community investment to mitigate conflict risk

To mitigate the high risk of social conflict, Southern Copper Corporation must significantly increase its community engagement and investment. The company's total investment commitment in Peru across major projects like Tía María, Michiquillay, and Los Chancas exceeds $6.8 billion, but the allocation for direct community programs is the key metric here.

The focus is shifting toward formal social agreements and direct investment. For the Michiquillay project, for example, the company signed social agreements with the Michiquillay and La Encañada communities in 2021, committing to social investments during the preoperational period. Furthermore, the company is actively engaged in discussions with new community representatives in 2025 to discuss proposed plans for social programs, which is a necessary, albeit late, step. You need to see a clear, high-dollar commitment in the next quarterly report to feel comfortable with this risk.

Labor union negotiations in Mexico impacting production stability

Labor relations, particularly in Mexico, present a clear and immediate threat to production stability, translating directly into lost revenue. The Buenavista del Cobre mine, a major operation for the company's subsidiary Minera México, faced an intense labor dispute in early 2025 that paralyzed operations.

This strike action at Buenavista del Cobre, one of Mexico's most significant copper operations, halted an estimated 80% of the mine's activity and was costing the company around $15 million daily in lost revenue. The Q2 2025 results reflected this instability, showing a 2.5% drop in copper production in Mexico, driven by decreases at both Buenavista (-2.9%) and La Caridad (-1.7%).

Here's the quick math on the Mexican operations: while the company is negotiating with the new government to unlock $10.2 billion in stalled investment and plans to spend over $600 million by the end of 2025 on modernization, stable production is still contingent on resolving these underlying labor grievances over worker safety and profit-sharing.

• Q2 2025 Production Drop (Mexico): 2.5%
• Estimated Daily Revenue Loss (Buenavista Strike): $15 million
• 2025 Investment in Mexican Operations: Over $600 million

Focus on local job creation and training programs

Southern Copper Corporation is making concrete progress on local job creation for its major projects, a key component of earning community trust and improving the social factor score. The Tía María project is the best example of this focus, providing specific, measurable targets and results for 2025.

As of June 30, 2025, the company had generated 1,376 new jobs during the early construction phase of Tía María. Crucially, 802 of these positions were filled by local applicants, showing a commitment to the Islay province workforce. The overall goal is to fill the estimated 3,500 jobs required during the construction phase with local workers.

The long-term employment projections are substantial, providing a strong economic benefit to the region, which is a powerful counter-argument to the environmental concerns raised by the opposition.

Project Phase	Job Metric	Amount/Target (2025 Data)
Tía María Construction (as of June 30, 2025)	Total New Jobs Generated	1,376
Tía María Construction (as of June 30, 2025)	Jobs Filled by Local Applicants	802
Tía María Construction (Target)	Total Estimated Construction Jobs	3,500
Tía María Operation (Post-2027)	Direct Jobs Generated	764
Tía María Operation (Post-2027)	Indirect Jobs Generated	5,900

Southern Copper Corporation (SCCO) - PESTLE Analysis: Technological factors

Increased use of automation and remote operations to boost efficiency.

You're seeing a clear trend across the mining sector: technology is the new ore grade, and Southern Copper Corporation is defintely leaning into it. The company is actively deploying automation and remote operations to tackle rising labor costs and improve safety, which directly translates to a lower cash cost. Here's the quick math: SCCO's operating cash cost per pound of copper, after by-product credits, plummeted from $0.77 in Q1 2025 to just $0.42 in Q3 2025. That's a massive 45% reduction in just six months, a feat that wouldn't be possible without significant technological overhauls in process control and equipment efficiency.

A substantial part of this push is tied to infrastructure modernization. In Mexico alone, the company plans to invest over $600 million by the end of 2025. About half of that capital is specifically earmarked for modernizing infrastructure to ensure long-term viability and operational efficiency. This investment is funding the shift to more autonomous equipment and centralized control systems, allowing for safer, 24/7 operations with fewer human interventions in high-risk areas.

Implementing advanced flotation technology to improve copper recovery rates.

The challenge in mining is that ore grades are declining globally, so you have to get smarter about what you extract. Southern Copper Corporation is focusing on advanced processing technology to maximize recovery from its existing ore body. While the core copper process involves traditional flotation, the success of new concentration technology is best seen in their by-products, which directly subsidize copper costs.

The new technology at the Buenavista zinc concentrator, for example, is a major win. It is now operating at full capacity, and that efficiency is projected to drive a substantial 34% increase in zinc production in 2025 compared to 2024. This is a concrete example of how advanced mineral processing-whether it's flotation, inverse flotation for molybdenum, or solvent extraction-electrowinning (SX-EW) for cathodes-is immediately boosting revenue and improving net margins. The El Pilar project, for instance, will use the highly cost-efficient and environmentally friendly SX-EW technology, which produces high-purity copper cathodes.

The increase in by-product production for the first nine months of 2025 is striking:

• Zinc production grew 50.5%.
• Molybdenum production grew 6.7%.
• Silver production grew 15.3%.

Investing in desalination plants to secure water supply for operations.

Water scarcity is a major non-technical risk in the Andean region, but technology offers a clear mitigation path. Southern Copper Corporation is strategically investing in water desalination to secure its supply, especially for new projects, which is critical for long-term production stability.

The company is actively moving forward with detailed engineering for water desalination as part of the infrastructure for its massive Tía María project in Peru and the El Pilar project in Mexico. This is a non-negotiable step for large-scale mining in arid regions. The Tía María project alone is a $1.802 billion investment, and securing a sustainable water source via desalination is fundamental to its planned 2027 start-up and its ability to generate an estimated $18.2 billion in exports over its first 20 years.

Digital twin technology for predictive maintenance on haul trucks.

The shift from reactive maintenance (fixing a broken part) to predictive maintenance (replacing a part right before it fails) is a core technological opportunity. While Southern Copper Corporation doesn't often use the jargon in public filings, its focus on operational efficiency implies the use of digital twin technology-a virtual replica of a physical asset that uses real-time sensor data to simulate and predict performance.

This technology is particularly vital for expensive, mission-critical equipment like haul trucks. Losing a single haul truck to unplanned downtime can cost a mine millions in lost production. Industry data shows this is a game-changer:

Metric	Typical Digital Twin Impact (Mining Industry)
Unplanned Downtime Reduction	Up to 78%
Failure Prediction Accuracy	Up to 92%
Operational Efficiency Boost	Up to 25%

If they can cut unplanned outages by even 25% across their fleet, the savings on their Q3 2025 operating cash cost of $0.42 per pound will be substantial, helping to sustain that industry-leading low cost. It's about maximizing asset utilization, and a digital twin is the tool that makes that possible.

Southern Copper Corporation (SCCO) - PESTLE Analysis: Legal factors

Complex and slow environmental impact assessment (EIA) approval processes.

The most significant legal hurdle for Southern Copper Corporation (SCCO) remains the protracted Environmental Impact Assessment (EIA) and permitting process in Peru and Mexico, a scenario that directly translates to multi-billion dollar project delays. The complexity often stems from the legal requirement for government approval intersecting with strong community opposition, effectively requiring a social license to operate alongside the legal one.

A prime example is the $1.8 billion Tía María project in Peru. While the project's Environmental Impact Study (EIS) was approved years ago, the final exploitation license was only secured from Peru's Ministry of Energy and Mines (Minem) in October 2025, after an almost 20-year delay. This milestone, though positive, underscores how long a legally compliant project can be stalled. In Mexico, the company is in discussions with the new administration to unlock approximately $10.2 billion in investments that were stalled due to a backlog of permits.

This is a clear bottleneck.

The industry-wide challenge is significant, with an estimated $7 billion worth of copper projects in Peru currently stalled due to environmental, social, or governance (ESG) issues, including SCCO's Michiquillay and Los Chancas projects.

Compliance with evolving anti-corruption laws in both nations.

Southern Copper Corporation must navigate an evolving and high-risk anti-corruption landscape, particularly in Peru, where systemic corruption remains a major concern, affecting all levels of government. The legal framework is in place-Peru is a signatory to the OECD Anti-Bribery Convention and has a new procurement law effective April 2025-but enforcement is inconsistent. Transparency International ranked Peru 127th out of 180 countries in its 2024 Corruption Perceptions Index, a drop from the previous year.

The OECD Working Group on Bribery's January 2025 mission to Lima, driven by concerns over judicial independence, highlights the ongoing operational risk that political interference poses to the rule of law. In Mexico, the General Law of Administrative Liability (GLAL) holds both public officials and private companies accountable for administrative corruption offenses, meaning SCCO must maintain rigorous internal controls to comply with both local and international anti-bribery standards like the U.S. Foreign Corrupt Practices Act (FCPA).

You defintely need a robust, localized compliance program here.

Land tenure disputes and eminent domain challenges for expansion.

Expansion projects are continually exposed to legal risks stemming from land tenure and social conflict, which often manifest as challenges to the state's use of eminent domain or the company's property rights. The Tía María project's long-standing conflict, which involved community protests that resulted in six deaths between 2011 and 2015, illustrates the severity of these disputes, even after legal approvals are granted.

A more immediate legal and security challenge is the encroachment of illegal mining. The Los Chancas project, for instance, has experienced security incidents, including two camp burnings, due to unauthorized miners operating near the concession. The Peruvian government has set a deadline for small-scale miners to formalize their operations by the end of December 2025, a regulatory effort intended to mitigate this exact type of land dispute and encroachment risk.

Navigating new regulations on mine closure and rehabilitation funding.

Both Peru and Mexico impose strict legal requirements for mine closure and environmental rehabilitation, necessitating substantial financial provisions and ongoing compliance. Peru's Law 31347, with its regulation published in March 2025, now requires companies to set aside additional guarantees for the progressive closure of operations and environmental remediation activities, with a three-year period to update the guarantee constitution table.

This progressive closure funding is a significant liability. Southern Copper Corporation is already compliant with the pre-existing framework, having its closure plans approved by the Ministry of Energy and Mines (MINEM). As of January 2025, the company had provided total guarantees of $98.5 million for its Peruvian operations' asset retirement obligation.

Here's the quick math on the near-term environmental capital spend:

Metric (First Six Months 2025)	Peruvian Operations (Millions USD)	Mexican Operations (Millions USD)	Total (Millions USD)
Environmental Capital Investments	$6.9	$84.2	$91.1

The company's environmental capital investments for the first half of the 2025 fiscal year totaled $91.1 million, with the bulk, $84.2 million, allocated to Mexican operations for water recovery systems, reforestration, and dust emission reduction. This high capital expenditure reflects the legal and operational necessity of maintaining environmental compliance and preparing for eventual closure.

• Provide $98.5 million in closure guarantees (as of Jan 2025).
• Update progressive closure guarantees by March 2028.
• Allocate $91.1 million for H1 2025 environmental capital.

Southern Copper Corporation (SCCO) - PESTLE Analysis: Environmental factors

Here's the quick math: If SCCO hits its projected 2025 copper production of around 1.1 million metric tons, a 10% swing in the copper price is a $1 billion+ revenue change. That's why political and social stability is defintely more critical than ever.

Next step: Finance: Draft a sensitivity analysis showing EBITDA impact for a 15% delay in the Tía María project timeline by Friday.

High water usage in arid regions creating local scarcity issues.

Water scarcity is a major operational and social risk for Southern Copper Corporation, especially with its large-scale operations in arid regions of Peru and Mexico. The company is actively working to reduce its dependency on underground water sources, which are often shared with local communities, by investing in new water management technologies. For instance, a portion of the over $600 million investment planned for Mexican operations in 2025 is specifically earmarked for improvements in water usage and tailings management. This is a critical investment, as securing water use authorizations is a highly scrutinized regulatory hurdle for all new and existing projects in water-sensitive areas.

Significant carbon footprint from smelter operations requiring mitigation.

Southern Copper Corporation faces pressure due to its high carbon intensity relative to peers. In 2023, the company's total operational greenhouse gas (GHG) emissions (Scope 1 and 2) amounted to 5,790,000 metric tons of CO2 equivalent. More specifically, the Scope 1 emissions intensity in 2023 was 500.21 tCO₂e per millions USD of revenue, which is substantially higher than the industry peer median of 171.11. To mitigate this, the company is investing in renewable energy, like the new Fenicias Wind Farm, which is designed to generate 168 MW of wind power and reduce the organization's carbon footprint. This kind of capital expenditure is necessary to maintain a social license to operate (SLO) and meet evolving global sustainability demands.

Strict tailings management and dam safety regulations following global incidents.

Following high-profile global tailings dam failures, the regulatory environment for mine waste (tailings) management has become significantly stricter. Southern Copper Corporation operates a system of tailings dams, including six in Mexico and one in Peru. The company has responded by adopting the Global Industry Standard on Tailings Management (GISTM) and has improved its internal governance by implementing a new Internal Committee for Review of Tailings Systems to bolster safety management. Ensuring the long-term stability and safety of these facilities is a major capital and operational commitment, plus it is a constant public relations risk.

The table below summarizes the company's environmental performance and mitigation efforts:

Environmental Metric	2023 Performance/Commitment	Strategic Implication (2025)
Total GHG Emissions (Scope 1 & 2)	5,790,000 tCO₂e	High regulatory and investor scrutiny; drives renewable energy investment.
Scope 1 Emissions Intensity	500.21 tCO₂e / $M Revenue	Significantly above peer median (171.11); pressure to improve carbon efficiency.
Renewable Energy Investment	Fenicias Wind Farm (168 MW)	Direct action to reduce carbon footprint and secure long-term power supply.
Water/Tailings Management Funds	Over $300 million (part of $600M Mexican CAPEX)	Essential for project viability and community relations in arid regions.

Commitment to reducing sulfur dioxide emissions from La Caridad and Ilo smelters.

The company's vertically integrated model, which includes the La Caridad (Mexico) and Ilo (Peru) smelters, necessitates a continuous focus on air quality regulations, particularly for sulfur dioxide ($\text{SO}_2$) emissions. Southern Copper Corporation manages this by treating the $\text{SO}_2$ emissions at its processing facilities to produce sulfuric acid. This process not only mitigates pollution but also creates a valuable by-product, which is then sold to mining and fertilizer companies in Mexico, Peru, the United States, and Chile.

Ongoing environmental compliance efforts include:

• Treating $\text{SO}_2$ emissions to produce commercial-grade sulfuric acid.
• Implementing a new plant at the La Caridad metallurgical complex specifically designed to reduce dust emissions.
• Maintaining certifications for responsible copper production at facilities like La Caridad.

This commitment is vital, as the company's 2025 copper production is forecasted to be approximately 968,200 tonnes, meaning any operational disruption from regulatory non-compliance at the smelters would have a massive impact on revenue.