Southern Copper (NYSE: SCCO) sells $1.25B bonds to fund Tía María mine
Rhea-AI Filing Summary
Southern Copper Corporation reported that its Peruvian branch, Southern Peru Copper Corporation, has raised US$1.25 billion in the New York bond market to finance the Tía María copper project. The bonds pay 5.35% annual interest until maturity in 2036.
Tía María is planned to produce 120,000 metric tons of refined copper per year and begin operations in the third quarter of 2027. The project’s total capital budget is US$1.8 billion, of which US$948 million has already been committed and it has generated 5,300 jobs so far.
Over its first 20 years, Tía María is expected to generate about US$24.1 billion in exports and US$6.2 billion in taxes and royalties. The company is also advancing the Michiquillay copper project in Peru, with an estimated investment of US$2.5 billion and expected production start in 2032.
Positive
- Secured US$1.25 billion long-term bond financing at a fixed 5.35% coupon maturing in 2036, primarily funding the large-scale Tía María copper project with substantial projected exports and tax contributions.
Negative
- None.
Insights
Southern Copper secures major bond financing for long-life Peruvian copper projects.
Southern Peru Copper Corporation has raised US$1.25 billion via a New York bond offering at a 5.35% coupon maturing in 2036, primarily to fund the Tía María project. This provides long-term, fixed-rate funding for a large-scale greenfield copper asset.
Tía María is designed for annual output of 120,000 metric tons of refined copper, with operations targeted for the third quarter of 2027. The total capital budget is US$1.8 billion, with US$948 million already committed, indicating advanced project preparation and sizable remaining spend.
Management expects Tía María to deliver about US$24.1 billion in exports and US$6.2 billion in taxes and royalties over its first 20 years, underscoring its scale for both the company and Peru. In parallel, the Michiquillay project, with an estimated US$2.5 billion investment and planned start in 2032, adds a second long-life copper growth engine.
8-K Event Classification
Key Figures
Key Terms
bond offering financial
SX-EW (Solvent Extraction and Electrowinning) technical
Works for Taxes (Obras por Impuestos) regulatory
royalties financial
world-class copper deposit market
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): June 26, 2026 (
(Exact name of registrant as specified in its charter)
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 8.01Other Events.
On June 24, 2026, Southern Peru Copper Corporation (“SPCC”), the Peruvian branch of Southern Copper Corporation issued a press release announcing that it raised US$1.25 billion for the development of the Tía María mining project through a bond offering in the New York market. A copy of this press release is attached hereto as Exhibit 99.1.
The information in this report and the exhibit attached hereto are being furnished and shall not be deemed as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.
ITEM 9.01Financial Statements and Exhibits
(d)Exhibits:
99.1Press release of Southern Peru Copper Corporation dated June 24, 2026.
104Cover Page Interactive Data File (embedded within the inline XBRL document)
EXHIBIT INDEX
Exhibit No. | | Description |
99.1 | Press Release of Southern Peru Copper Corporation dated June 24, 2026. | |
104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SOUTHERN COPPER CORPORATION | ||
By: | /s/ Andres Carlos Ferrero | |
Name: | Andres Carlos Ferrero | |
Title: | General Counsel | |
Date: June 26, 2026
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Exhibit 99.1
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Lima, June 24, 2026
SOUTHERN PERU COPPER CORPORATION SECURES FINANCING FOR THE TIA MARIA PROJECT
Southern Peru Copper Corporation, Sucursal del Peru (“SPCC”), part of Grupo México, announced that it has secured financing for US$1.25 billion, primarily to develop the Tía María mining project. The funds were raised through a bond offering in the New York market. These securities will pay an annual interest rate of 5.35% until their maturity in 2036.
Tía María project will have an annual production capacity of 120,000 metric tons of refined copper. The project will employ state-of-the-art SX-EW (Solvent Extraction and Electrowinning) technology, which meets the highest international environmental standards. Tía María is expected to begin operations in the third quarter of 2027. To date, the project has generated 5,300 jobs, many of which have been filed by local workers.
During its first 20 years of operation, Tía María is expected to generate significant economic benefits for the Arequipa region. At current copper prices, the project is expected to generate approximately US$24.1 billion in exports and contribute US$6.2 billion in taxes and royalties. The project's total capital budget is US$1.8 billion, of which US$948 million has already been committed.
SPCC consistently works to promote the well-being of communities in the province of Islay and the Arequipa Region. As part of these efforts, SPCC implements successful social programs focused on education, healthcare, and productive development initiatives.
SPCC's social programs in Islay help reduce agricultural production costs and enhance productivity through the use of advanced technology. In addition, SPCC develops healthcare facilities, high-performance schools, research centers, and road infrastructure in the Arequipa Region through Peru’s “Works for Taxes” (Obras por Impuestos) mechanism.
SPCC is also advancing its Michiquillay project, which as a world-class copper deposit has significant potential to spur Peru’s development down the line. Located in Cajamarca, Michiquillay is expected to produce approximately 225,000 metric tons of copper per year, along with molybdenum, gold, and silver by-products, over an initial mine life of more than 25 years. The project’s investment requirement is estimated at approximately US$2.5 billion, and production is expected to begin in 2032.
In Peru, the openness of institutions to private investment, the strong support of local communities, and respect for the rule of law, provide certainty and support for SPCC’s ambitious investment program.