FULFILLING
GOALS
Annual Report 2015
STATEMENT OF RESPONSIBILITY
“To the best of our knowledge this document contains truthful and sufficient information regarding the development of
the business of Southern Copper Corporation (“SCC”) during 2015. SCC takes responsibility for its contents according to
applicable requirements”.
HANS A. FLURY ROYLE
Assistant Secretary
RAUL JACOB RUISANCHEZ
Vice-President Finance and Chief Financial Officer
CONVERSION INFORMATION: All tonnages in this annual report are metric tons unless otherwise noted. To convert to short
tons, multiply by 1.102. All distances are in kilometers, to convert to miles, multiply by 0.62137. All ounces are troy ounces.
U.S. dollar amounts represent either historical dollar amounts, where appropriate, or U.S. dollar equivalents translated in
accordance with generally accepted accounting principles in the United States. “SCCO”, “SCC”, “Southern Copper” or the
“Company” includes Southern Copper Corporation and its consolidated subsidiaries.
INDEX
LETTER TO SHAREHOLDERS
PRODUCTION STATISTICS
COPPER RESERVES
SELECTED AND FINANCIAL DATA
CAPITAL INVESTMENT PROGRAM AND EXPLORATION
(EXPANSION & MODERNIZATION)
DEVELOPMENT - COMMUNITY OUTREACH
RESULTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
COMMITMENT - ENVIRONMENTAL AFFAIRS
GENERAL INFORMATION
DESCRIPTION OF OPERATIONS AND DEVELOPMENT REGARDING THE ISSUING ENTITY
03
06
08
13
14
22
42
48
60
MEMBERS OF THE BOARD OF DIRECTORS
101
In 2015, $1.25 billion were
invested in capital expenditures. We will increase our copper
production capacity
by 90%.
2 | 2 |
DIVISIÓN 2 |
2 | 3
LETTER TO SHAREHOLDERS
During 2015, we have made significant progress, capital investments were $1,250 million, which were used primarily
for the expansion program of the Buenavista mine, as well as for the acquisition of El Pilar project, both in Mexico;
while in Peru we have started construction of the new concentrator at Toquepala. With these projects we continue our
investment program to increase copper production capacity by 90% over of our 2013 production levels of 617,000
tons in 2013 to 1.2 million tons in 2013.
We would like to note that our $3.5 billion program, at the Buenavista mine, is being completed under budget and
meeting our forecasted productions and operating cost goals. Last September, we started commercial operations at
this unit and as of December, we have spent almost 90% of the Buenavista expansion capital budget. With the new
facilities, we hope to produce 460,000 tons of copper at Buenavista in 2016.
The new production of the Buenavista mine will be processed in the new copper-molybdenum concentrator, which
has an annual production capacity of 188,000 tons of copper and 2,600 tons of molybdenum. This project will also
produce 2.3 million ounces of silver and 21,000 ounces of gold per year. The new concentrator is in its ramping-up
phase with 5 of the 6 mills already in operation and the other in the commissioning process. In September 2015, we
obtained the first copper concentrate lot and the plant is now running at 90% capacity. Due to promising initial results,
it is expected to gradually increase production until the plant reaches full capacity in the second quarter of 2016. This
project has a 99% progress with an investment of $1.162 million out of the approved capital budget of $1.384 million.
In Peru, we have invested $392.0 million in Toquepala projects. On April 14, 2015 the construction permit for the
Toquepala expansion project was approved, this, together with the approval of the Environmental Impact Assessment
previously received, confirms that our project complies with the highest environmental standards of the Peruvian
authorities and corroborates our position as a sustainable Company. Once in operation, the Toquepala expansion
will increase annual production capacity by 100,000 tons of copper to 235,000 tons in 2018, and will also increase
molybdenum production by 3,100 tons.
Regarding the Tia Maria project, we have received the approval of the Environmental Impact Assessment; however,
the issuance of the project’s construction permit has been delayed by the Peruvian authorities due to certain pressures
ANNUAL REPORT 2015 4 | 4 |
from anti-mining groups. To explain the merits of the
cost competitiveness, with great benefit for all our
project,
the Company established a multi-faceted
stakeholders.
encounter plan, which began with a national media
campaign, followed by a door-to-door campaign in the
Our annual copper production in 2015 was 742,993
neighboring district of Cocachacra. The purpose of the
tons, a new record. In 2016, we expect to reach copper
campaign was to explain the relevant environmental
production of 903,300 tons, an increase of 21.6% and
aspects of the project and answer questions. Tia Maria
again a new record production. The additional copper
will use desalinated seawater and SX/EW technology
units have a very low cost per pound, improving our
with the highest international environmental standards,
overall cash cost and competitiveness.
which are considered the most environmentally friendly
in the industry, as no emissions are released into the
Simultaneously with our investment program, Southern
atmosphere. The project represents an investment of
Copper has maintained a sound capital structure and a
approximately $1.4 billion to produce 120,000 tons of
strong balance sheet, despite this investment program
copper cathode per year. We trust that we will soon
and the significant drop in prices of our main products.
receive the necessary construction licenses and permits
required in order to begin construction of Tia Maria.
In 2015, Southern Copper managed to mitigate the
We are confident that the positive results of our
of copper (+ 12.3%), zinc (+ 10.3%) and reducing
investment programs in Mexico and Peru, as well as
unitary costs. The operating cash cost per pound of
our prudent financial policy, will further improve our
copper before by-product credits was $1.66 in 2015,
downward trend in prices by increasing the sales volume
DIVISIÓN 4 |
4 | 5
The new copper-molybdenum concentrator
at the Buenavista mine, reaches full capacity
in the second quarter of 2016.
Our $3.5 billion
expansion program is
being completed at the
Buenavista mine under
budget.
The Toquepala
expansion will increase
annual production
capacity by 100,000
tons of copper to
235,000 tons in 2018.
a reduction of 11.8% when compared to the $1.89 per
On behalf of Southern Copper Corporation’s Board,
pound in 2014. This was mainly due to an increase
we express our thanks to all our personnel for their
in production and a decrease in costs such as labor,
effort, hard work and dedication, to our clients for their
energy, fuel and administrative expenses. Operating
continued trust and loyalty, and to you, our shareholders,
cash cost per pound, net of by-product credits, was
for your permanent support.
$1.12 in 2015, an increase of 4.6% compared to $1.07
in 2014 mainly due to lower sales prices of all our by-
products.
In regard to our reserves, we believe we currently have
GERMAN LARREA MOTA VELASCO
the largest copper reserves in the industry. Our copper
Chairman of the Board
reserves at December 31, 2015, totaled 70.1 million
tons of copper content, calculated at a price of $2.90
per pound.
Our social benefit programs continue in each of the
President and Chief Executive Officer
OSCAR GONZALEZ ROCHA
countries where we conduct exploration, mining
and processing activities. Thereby, improving living
conditions for neighboring towns.
ANNUAL REPORT 2015 6 |
DIVISION
PRODUCTION STATISTICS
Southern Copper Corporation and Subsidiaries
Five-year Production Statistics
Copper production Mines
(tons)
2015
2014
2013
2012
2011
Mined Material
(thousand)
764,532
758,965
641,456
568,428
502,909
Copper in concentrates
569,072
532,291
498,361
516,572
465,973
Copper SX/EW
Total Copper
Molybdenum in concentrates
Zinc in concentrates
Silver in concentrates
(thousand ounces)
Smelter/refineries production
173,921
144,308
118,658
121,107
121,518
742,993
676,599
617,019
637,679
587,491
23,347
61,905
13,288
23,120
19,897
18,297
18,570
66,614
99,372
89,884
83,807
12,992
13,513
13,644
12,731
Copper
Zinc
Silver
Toquepala
Mined Material
597,945
561,939
545,082
558,998
569,492
100,576
92,133
97,692
93,542
90,869
(thousand ounces)
13,638
13,348
15,572
13,867
12,590
(thousand)
193,013
211,202
169,808
173,927
177,398
Copper in concentrates
119,427
114,828
110,691
120,108
120,379
Molybdenum in concentrates
7,924
6,100
4,662
4,468
5,363
Cuajone
Mined Material
191,651
182,812
173,277
154,091
140,108
Copper in concentrates
178,187
178,337
168,582
158,793
140,140
Molybdenum in concentrates
4,444
4,001
3,133
2,861
2,787
Smelter/refineries in Peru
SX/EW
Smelt concentrates
Blister produced
Anode produced
Cathode produced
24,167
25,675
28,400
32,194
35,322
1,143,682
1,022,536
1,072,826
996,592
1,094,224
2,800
-
1,670
32,843
-
338,893
303,939
322,637
265,213
337,812
280,591
257,926
271,035
215,666
260,998
ANNUAL REPORT 2015
6 |
7
2015
2014
2013
2012
2011
Mexicana de Cobre – Caridad
Mined Material
(thousand)
94,283
91,454
88,595
86,632
Copper in concentrates
103,861
101,062
96,863
97,847
Molybdenum in concentrates
10,040
10,800
11,742
10,968
84,266
89,778
10,420
Buenavista
Mined material
(thousand)
282,954
271,026
206,710
150,871
98,306
Copper in concentrates
142,025
132,853
115,813
133,966
110,147
Smelter/Refineries in Mexico
SX/EW
Smelt concentrates
Anode produced
Cathode produced
Rod produced
Underground Mines
Contents in concentrates
(tons)
149,754
118,633
90,258
88,913
86,196
933,403
926,427
722,597
904,311
832,307
256,252
258,000
220,775
260,941
231,680
213,360
204,302
188,005
213,734
186,853
138,180
129,078
126,800
120,791
107,925
Zinc
Lead
Copper in concentrates
Silver
Gold
61,905
20,693
5,593
4,995
4,697
66,614
99,372
89,884
22,286
23,918
19,978
5,211
6,412
4,945
6,170
4,857
5,493
5,858
5,974
5,210
83,807
18,817
5,529
5,866
6,286
(thousand ounces)
(thousand ounces)
MINERAL
RESERVES
SCC 70.1 million tons of
copper ore reserves.
Buenavista 24.53 million tons
of copper ore reserves.
Toquepala 15.47
million tons of copper
ore reserves.
10 |
10 |
We believe we hold the world’s
largest copper reserve position.
DIVISIÓN 10 |
10 | 11
More than 70 million tons
of copper contained in
ore reserves.
COPPER RESERVES
We believe we hold the world’s largest copper reserve position. At De-
cember 31, 2015, our copper ore reserves, calculated at a copper price
of $2.90 per pound, totaled 70.1 million tons of contained copper (as
of December 31, 2015, the LME and COMEX copper price was $2.50
and $2.51, respectively), our internal ore reserve estimation value is as
follows: as follows:
COPPER CONTAINED IN ORE RESERVES
Thousand tons
Mexican open-pit:
Buenavista
La Caridad
IMMSA
Peru:
Toquepala
Cuajone
Development projects:
El Arco
Tia Maria
Angangueo
Total
24,526
8,749
218
15,474
9,293
9,125
2,626
92
70,103
For more information on ore reserves refer to “Mineral Reserves”
(pages 50-55) in our 2015 Form 10-K.
ANNUAL REPORT 2015 MINERAL RESERVES
12 |
12 |
$12.59 billion, total assets.
$5.05 billion, sales.
$5.29 billion, total equity.
SOUTHERN COPPER CORPORATION AND SUBSIDIARIES FIVE-YEAR SELECTED
FINANCIAL AND STATISTICAL DATA
For the years ended December 31
12 |
12 |
13
(in millions, except per share amounts,
employee data and stock and financial ratios)
Consolidated Statement of earnings
Net earnings attributable to SCC
Net sales
Operating costs and expenses
Operating income
Non-controlling interest of investments shares
2015
2014
2013
2012
2011
736
$ 1,333
$ 1,619
$ 1,935
$ 2,336
5,045.9
3,631.5
1,414.4
$ 5,788
$ 6 , 6 6 9
$ 6,669
$ 6,819
$ 3,555
2,233
3,560
3,109
3,560
3,109
3,193
3,625
on Peruvian Branch Income
3
5
6
7
8
Per share amount
Net earnings attributable to SCC – basic and diluted
Dividends paid
Consolidated balance sheet
Cash and cash equivalent
0.93
0.34
275
$ 1.61
0.46
$
$
1.92
0.68
$
$
2.28
4.06
$
$
2.73
2.43
364
$ 1,673
$ 2,460
$
848
12,593.2
11,393
10,996
10,384
4,181
4,205
4,214
8,063
2,746
Total assets
Total debt
Total equity
Consolidated statement of cash flows
Cash provided from operating activities
Dividend paid
Capital expenditures
Depreciation & depletion
Capital stock
Common shares outstanding (in thousands)
NYSE price – high
NYSE price – low
Book value per share
P/E ratio
Financial ratios
Current assets to current liabilities
Net debt as % of capitalization (1)
Employees (at year end)
5,952
5,299
880
217
1150
511
776
33.14
24.40
6.78
28.19
$ 5,837
$ 5,562
$ 4,789
$ 4 , 0 3 6
$ 1,356
$ 1,859
$ 2,004
$ 2,080
381
1,530
445
574
1,703
396
3,140
1,052
326
2,080
613
288
813
835
846
850
$ 24.40
$ 33.54
$ 26.08
$ 41.96
$ 26.08
$ 24.78
$ 28.16
$ 23.99
$ 7.14
$
6.62
$
5.64
$
4.77
17.52
14.95
16.60
11.04
2.70
48.9%
13,024
2.07
37.3%
4.36
29.2%
5.00
3.12
25.0%
25.2%
12,735
12,665
12,085
12,145
(1) Represents net debt divided by net debt plus equity. Net debt is total debt minus cash and cash equivalents balances.
ANNUAL REPORT 2015
CAPITAL
EXPENDITURES
AND
EXPLORATION
EXPANSION & MODERNIZATION
$1.25 billion,
capital
investments.
For 2016, the Board of
Directors approved a capital
investment program of $1.58
billion.
By 2018, our copper
production capacity will be
1.2 million tons.
CAPITAL EXPENDITURES AND EXPLORATION
Our copper production
capacity will increase
more than 90% by 2018.
CAPITAL EXPENDITURES
AND EXPLORATION
We made capital investments of $1,250.0 million in 2015, including
the El Pilar acquisition, $1,534.8 million and $1,703.3 million in 2014
and 2013, respectively. In general, the capital investments and projects
described below are intended to increase production, decrease costs or
address social and environmental commitments.
This is 18.3% lower than in 2014, and represented 169.7% of net
income. Our growth program to develop the full production potential of
our Company is underway. In addition, the Buenavista expansion program
is largely completed.
For 2016, the Board of Directors approved a capital investment program
of $1,577.8 million to make the final payments for the Buenavista
projects, to initiate the construction of a new concentrator in Toquepala,
with an annual production capacity of 100,000 tons of copper and 3,100
tons of molybdenum, and for the Tia Maria project. With these projects
we are continuing our investment program to increase copper production
capacity by more than 90% from our 2013 production level of 617,000
tons to 1.2 million tons by 2018.
In addition to our ongoing capital maintenance and replacement spending,
our principal capital programs include the following:
PROJECTS IN MEXICO:
Buenavista Project: We are completing the development of our $3.5
billion investment program at this unit, where we have already invested
$3.0 billion. Excluding the Quebalix project and some infrastructure
facilities, all the other facilities of this program are currently operating
and we are expecting to produce 460,000 tons of copper in 2016 and
500,000 tons in 2017.
17
$392.0 million were invested in the
Toquepala concentrator expansion
projects.
Tia Maria will represent an
investment of approximately
$1.4 billion to produce
120,000 tons of copper
cathodes per year.
The new copper-molybdenum concentrator has an annual
Regarding the SX-EW III plant, in July 2015, the Mexican
production capacity of 188,000 tons of copper and 2,600
authorities approved the initiation of activities for the
tons of molybdenum. The project will additionally produce
Tinajas 1 leaching pad. This will allow us to achieve the
2.3 million ounces of silver and 21,000 ounces of gold per
estimated low cost annual production of 120,000 tons
year. The total capital budget of the project is $1,383.6
of copper cathodes by the first quarter of 2016. As of
million and as of December 31, 2015, the project had a
December 31, 2015, we have invested $526.4 million.
99% progress with an investment of $1,162.0 million.
The crushing, conveying and spreading system for
All major equipment is in place and has been installed.
leachable ore project (Quebalix IV) will increase production
by improving SX-EW copper recovery, reducing processing
Regarding the mine equipment acquisition for the
time and mining and hauling costs. The project has a
Buenavista expansion, through December 31, 2015 we
crushing and conveying capacity of 80 million tons of ore
have invested $510.9 million and have received sixty-one
per year and is expected to be completed by the second
400-ton capacity trucks, seven shovels and eight drills
quarter of 2016. As of December 31, 2015, the project
required for the mine expansion. All of this equipment is
has an 87% progress with an investment of $209 million
currently in operation.
out of the approved capital budget of $340 million.
ANNUAL REPORT 2015 CAPITAL EXPENDITURES AND EXPLORATION
18 |
The remaining projects to complete the $3.5 billion
reducing operating and maintenance costs as well as the
budgeted program include investments in infrastructure,
environmental impact of the Cuajone mine. The crusher
including power lines and substations, water supply,
will have a processing capacity of 43.8 million tons per
tailings dam, mine equipment shops, internal roads and
year. We are completing the detailed engineering. The main
others.
PROJECTS IN PERU
components including the crusher and the overland belt
have been acquired and we have started the preparation
of the land and civil works. As of December 31, 2015,
Toquepala Projects: Through December 31, 2015, we
we have invested $80.1 million in this project out of the
have invested $392.0 million in the Toquepala concentrator
approved capital budget of $165.5 million. The project is
expansion projects. On April 14, 2015 the construction
expected to be completed by the first quarter of 2017.
permit for the project was approved, allowing us to
continue its development. We had previously received the
The project to replace tailing thickeners at the concentrator
approval of the Environmental Impact Assessment (“EIA”)
will replace two of the three existing thickeners with a
confirming that our project complies with the highest
new hi-rate thickener. The purpose is to streamline the
environmental standards of the Peruvian authorities, which
concentrator flotation process and improve water recovery
corroborates our position as a sustainable company.
efficiency, increasing the tailings solids content from
54% to 61%, thereby reducing fresh water consumption
Once in operation, the Toquepala expansion will increase
by replacing it with recovered water. As of December
annual production capacity by 100,000 tons of copper
31, 2015, we finalized the commercial negotiations
to 235,000 tons in 2018, and will also increase annual
and started the engineering and procurement process.
molybdenum production by 3,100 tons at an estimated
We have invested $1.3 million in this project out of the
capital cost of $1.2 billion. It is estimated that the project
approved capital budget of $30 million, and we expect it
will generate 2,200 jobs during the construction phase
to be completed by the first quarter of 2017.
and 300 additional jobs once finished, which will add to
current 1,500 permanent employees at Toquepala. The
Tia Maria Project: While we have received approval of
project is expected to be completed by the first quarter
Tia Maria´s EIA, the issuance of the project´s construction
of 2018.
permit has been delayed by the Peruvian authorities due
to certain pressures from anti-mining groups.
Cuajone Projects: The In-Pit Crushing and Conveyor
(IPCC) Project consists of installing a primary crusher at
Tia Maria, when completed, will represent an investment
the mine pit with a conveyor system for moving the ore to
of approximately $1.4 billion to produce 120,000 tons of
the concentrator. The purpose of this project is to optimize
copper cathodes per year. This project will use state of
the hauling process by replacing rail haulage, thereby
the art SX-EW technology with the highest international
18 | 19
Tia Maria facilities will be a
SX-EW, the most environmentally
friendly in the mining industry.
The In-Pit Crushing and Conveyor
(IPCC) Project consists of
installing a primary crusher at the
Cuajone mine pit with a conveyor
system for moving the ore to the
concentrator.
ANNUAL REPORT 2015 20 |
The Tia Maria project will only use
seawater.
We guarantee that
the Tambo river water
resources and the water
resources from the wells
of the areas will be used
solely for farming and
human consumption.
Tia Maria has complied with
all existing requirements and
regulations.
DIVISIÓN SCC complies with all existing requirements and regulations where
operates.
20 | 21
environmental standards. SX-EW facilities are the most environmentally
friendly in the industry due to their technical process and consequently,
no emissions into the atmosphere are released. The project will only use
seawater, transporting this more than 25 kilometers and at 1,000 meters
above sea level, constructing a desalinization plant representing an
investment of $95 million. In this manner, we guarantee that the Tambo
river water resources and the water resources from the wells of the areas
will be used solely for farming and human consumption, as it has been
done until today.
Tia Maria has complied with all existing requirements and regulations and
therefore the Company trusts that it will soon receive from government
authorities the construction licenses and permits required in order to
begin construction of this project.
Tailings disposal at Quebrada Honda: This project increases the
height of the existing Quebrada Honda dam to impound future tailings
from the Toquepala and Cuajone mills and will extend the expected life
of this tailings facility by 25 years. The first stage and construction of
the drainage system for the lateral dam is finished. We are developing
the engineering and procurement to improve and increase the dam’s
embankment with a new cyclone battery station that will allow us to place
more slurry at the dams. The project has a total budgeted cost of $66.0
million with $53.4 million invested through December 31, 2015.
SCC holds the world’s
largest copper reserve
position.
ANNUAL REPORT 2015 22 |
COMMUNITY
OUTREACH
DIVISIÓN
22 | 23
SCC creates share values in the
areas where its operates.
According to
SCC goals.
ANNUAL REPORT 2015 24 |
Our business goal is the Meaningful
Development.
Strengthening the environment
from the human and environmental
point of view.
ENVIRONMENTAL AND SOCIAL MEASURES
Southern Copper Corporation is committed to generate the greatest value
for our stakeholders, aligned with our business objectives. In this regard,
we seek to achieve an increasingly responsible operation in the social,
economic and environmental fields, considering the expectations of our
stakeholders and aiming at the sustainability of the organization over
time, to continue contributing directly and indirectly with the development
of the country.
Our business goal is the Meaningful Development, with which we align our
investments and the distribution of economic value, from the strengthening
of the environment, from the human and environmental point of view
among our employees, communities and other stakeholders. We do our
best every day to consolidate the confidence they have in us, making
them participants in management, communicating our performance and
listening to their expectations, in order to create share value together.
To consolidate the
confidence they have
in us in order to
create share value
together.
DIVISIÓN 24 | 25
OUR ENVIRONMENTAL COMMITMENT
These lines of action are carried out in compliance with
We maintain an ongoing commitment to advance in harmony
international and local certifications that rule our operating
with the challenges of expansion and modernization of the
units in countries where we are present.
industry in which we participate. In this sense, we not only
seek regulatory compliance, we also operate under the
In 2015, four of our units were granted the ISO 14001:
best environmental practices, in order to always achieve
2004. These certifications, together with the 12 Clean
optimum environmental performance, to identify, evaluate
Industry certifications and 6 Environmental Quality
and mitigate the impacts generated by our activities on
certifications, are the result of the efforts of all our
the environment.
employees and a comprehensive application of our
environmental practices.
To do this, we have strategies that meet the specific
environmental needs of each region in which we operate,
and use an environmental management system that we
have developed, with the following 9 lines of action:
IN HARMONY WITH THE ENVIRONMENT
IN DETAIL
9
Compliance with environmental regulations
1
Responsible use of water and natural resources
8
Reforestation
2
Prevention, control and reduction of air emissions
7
Biodiversity conservation
3
Efficient use of energy
6
Mine closure
5
Reduction of GHG emissions per ton produced
4
Reduction in waste generation and integrated management
ANNUAL REPORT 2015 SCC is efficiently in energy consumption.
Developing and using renewable
energy sources.
We promote efforts to capture
greenhouse gases.
26 |
DIVISIÓN 26 | 27
ENVIROMENTAL EXPENDITURES
(million dollar)
• Diversifying our energy matrix.
• Developing and using renewable energy sources.
SCC
• Increasing the level of electric power self-sufficiency.
Energy
Air
Ground
Waste
Biodiversity
Management
Water
Total
$
$
$
$
$
$
$
$
0.47
83.80
15.66
64.30
15.53
10.30
14.47
204.52
ENERGY AND CLIMATE CHANGE
At SCC we are aware of the effects of climate change and
• Promoting efforts to capture greenhouse gases.
At SCC we have set a target to produce more with
less,
implementing energy efficiency
initiatives
in
accordance with best practices. Therefore, we work on
the redesign, conversion and adaptation of equipment,
process improvement and reorganization, and training
our employees to optimize energy use, making strong
investments in this regard.
In this sense, we are diversifying our sources of generation
of clean, renewable energy for our supply. Our operations
in Mexico have mitigated their indirect greenhouse gas
emissions by consuming clean energy supplied by SCC
subsidiaries that generate electric power through its high
efficient combined cycle and a wind farm. By replacing
its impact on our operations, so, by anticipating an increase
traditional sources of energy by more efficient and
in the probability of occurrence of extreme weather events
renewable sources, in 2015 we achieved a mitigation of
such as hurricanes, droughts, floods and fires, we have
151.680 tons of CO2eq.
identified potential risks from global warming. In addition to
the risks arising from the increase in global temperature of
Simultaneously with our environmental policy, we continue
the planet, we also face the impact of new environmental
to implement actions to maximize the generation of
policies and regulations being adopted by governments of
electricity by using our own energy sources. In the case
all countries.
of Mexico, we make use of the smelter gases for the heat
recovery boiler to generate energy. In Peru, we generate
Given these challenges, we are taking measures, which
energy from renewable sources, in particular from two
include:
hydroelectric plants with a combined capacity of 130
• Using energy more efficiently.
terajoules.
ANNUAL REPORT 2015 28 |
28 |
In addition to generating and consuming energy from renewable sources
and cleaner fuels, we have also implemented the best practices that
have resulted in higher energy efficiency in our operations, including the
improvement, redesign, conversion and retrofitting of equipment, the
rational use of resources, and the training of personnel to improve their
performance during operations.
In the last two years, we have invested more than $105 million in our
Peruvian mining complexes at Cuajone and Toquepala. One of our
projects of technological improvement in material transport systems will
not only allow us to reduce operating costs, but also the amount of energy
consumed and the intensity of emissions per ton produced of product.
Similarly, in our mining unit, Buenavista del Cobre (Sonora, Mexico) we
are moving forward in the construction of the “Quebalix IV” crushing and
conveying system. This infrastructure project lets us crush the material
and transport it by conveyor, one of which with 1.7 km length is the
longest in the Mexican mining industry, and will allow us to improve
our efficiency in the management of energy resources and reduce our
emissions of greenhouse gases associated with our activities of hauling
and crushing.
The measures to adapt to the effects of climate change are increasingly
relevant. In the case of Peru, global warming has been reflected in
meteorological phenomena of great intensity, such as El Niño, which
among its consequences, it has caused droughts in the interior and south
of the country, as opposed to heavy rains in the north and central coast. For
this reason, we are regionally supporting the Ministry of Agriculture and
the Water User Boards that manage water resources in areas where we
operate. We also continue working with communities in the forage delivery
programs for cattle, in cold seasons, given the scarcity of vegetation for
DIVISIÓN 28 |
28 | 29
Our reforestation projects provide a
double value to the environment.
SCC contributes to
biological biodiversity and
enrichment of flora and fauna
We contribute by trapping CO2 from
the atmosphere.
ANNUAL REPORT 2015 30 |
animals, an initiative that has been strengthened this year
to minimize the effects of drought.
on the other, they act as carbon sinks, trapping CO2
from the atmosphere. The Company has begun studies
to measure the contribution made by planting trees,
With these actions, and others, SCC confirms the
including differences between the species used, in order
commitment to reduce its carbon footprint, meet their
to maximize its associated impact.
implications and enhance our position as a sustainable
As part of our conservation efforts, we have a 1.3
global company, thereby improving our competitiveness
hectare Environmental Management Unit (EMU) that has
and contributing to shift towards an environmentally
been developed to replicate the wildlife environment of
friendly economic development.
threatened and endangered species, including the Mexican
BIODIVERSITY
In our operating units we have forest nurseries and
Gray Wolf and the Turkey Gould, along with other species
that are part of our program whose strategy focuses on
breeding and release, as well as in the regeneration of
greenhouses whose production of species native to the
their habitat.
region are used to reforest and rehabilitate ecosystems,
The EMU is a clear sign of how we involve the community
including those areas not adjacent to our operations.
in the common challenge of protecting our environment,
Our reforestation projects provide a double value to
particularly biodiversity of Sonora. This is extensible to the
the environment. On the one hand, they contribute to
Ecological Path, where the EMU, along 1.8 kilometers,
biological biodiversity and enrichment of flora and fauna;
offers educational and recreational activities, being visited
DIVISIÓN ANNUAL REPORT 2015
30 |
31
We replicate the wildlife
environment of threatened and
endangered species.
We protect the Mexican
Gray Wolf and the Turkey
Gould.
In Peru, we make significant
environmental measures
within the remediation
program at the Ite Bay.
by about 5,000 people and an average of 52 schools per year. The Path
also constitutes a very important facility in our reforestation efforts, with
an annual production of 500,000 plants.
In the Peruvian region of Tacna, we continue to make significant
environmental investments and conservation measures within the
remediation program at the Ite Bay. With an area of 1,600 hectares, this
successful program of contaminant removal has resulted in the largest
ANNUAL CAPACITY OF PRODUCTION
TREES
(in million)
2015
2014
2013
2012
4.4
4.4
4
2
COMMUNITY OUTREACH
Our mining operations
promote progress.
$204.52 million invested
in environmental
remedial.
and most diverse coastal waterfowl wetland in the country, and it has
become also a tourist attraction that favors economic development.
WATER MANAGEMENT
For our mining operations, water is the most important input, and in order
to ensure the sustainability of the resource in areas where we operate,
we develop projects to get the greater efficiency in their use, promote
reuse and use water discharged by third parties.
The efficient use of water and conservation programs include the
following:
• Pumping systems to recover water.
• Continuous water recovery process from tailings and thickener
processes for reuse in metallurgical processing.
• Implementation and maintenance of closed circuits to use the total
volume of process water.
• Implementation of the Zero Wastewater Discharge Program, looking
for a more efficient management of both consumption and reuse of
water resource within our mining operations.
These programs have enabled us to obtain a large proportion of our total
water consumption from reclaimed water. In 2015, 71% of total water
consumption at our mining operations was reclaimed water, minimizing
consumption and demand for fresh water.
In some of our units, we make use of municipal wastewater treatment
utilities, as is the case of our operations in San Luis Potosi (Mexico), so
that the availability of fresh water is largely for the local population.
At SCC we have done all that is within our reach to care for and protect
our communities, their rivers and land. Consistent with our commitment
to sustainability, we have concluded with all cleaning and remediation
works required as a result of the spill of copper sulfate solution which
occurred on August 6, 2014 at a dam 10 kilometers away from the
Buenavista del Cobre mine.
33
Peru, Ite Bay, peaceful haven for local and
migratory birds.
At SCC, we have done all
that is within our reach to
care for and protect our
communities, their rivers and
land.
ANNUAL REPORT 2015 COMMUNITY OUTREACH
34 |
On August 7, 2014 we launched an emergency plan to
whose actions were very effective. By initial cleaning and
contain and collect the materials released, as well as to
subsequent remediation, it was possible to collect a larger
minimize dispersion. For it, a contingency border was built
amount of metals than the one contained in the spill, which
with lime and milk of lime to neutralize the solution and
is explained by the geology of the area characterized by
soils and sediments of rivers were collected, concluding
highly mineralized geological formations.
with the cleanup actions in October 2014.
When Sonora and our communities were at risk, we
With the implementation of immediate measures in
support immediately and unconditionally to ensure all the
response to the contingency, pollutant load significantly
needs of the population. We compensate those susceptible
decreased in the water, so on August 27, 2014 the
to the potential consequences of precautionary measures
Delegate of the Secretariat of Agriculture, Livestock,
and the closure of the water, through the establishment
Rural Development, Fisheries and Food stated that the
of a trust, whose technical committee was created with
strip of 500 meters on the banks of the rivers Sonora and
representatives of the Federal Government, the Company
Bacanuchi had not been affected by pollutants.
and specialists, assisted by a team of environmental
Besides the significant work done to prevent damage to
experts, all in order to ensure proper use of funds that
the river, in 2015 we implemented a remediation program,
were provided. Through this mechanism, we have
When Sonora and our communities were at risk, we support immediately and
unconditionally.
34 | 35
invested more than $ 70 million for the supply of drinking
water, installation of water infrastructure, as well as
compensation to farmers, ranchers and the general
population, among other efforts.
SCC continues
fulfilling
its commitment
to make
environmental and health monitoring across the Sonora
and Bacanuchi rivers, and keep working to reforest those
areas of the river affected by Odile Hurricane. This in order
to verify that no negative affectations to the environment
or the people arise, and join efforts in our search for
meaningful development.
SCC continues fulfilling its
commitment to make
environmental and health
monitoring across the Sonora
and Bacanuchi rivers in Mexico.
Investing more than
$ 70 million for the
supply of drinking
water.
ANNUAL REPORT 2015 COMMUNITY OUTREACH
36 |
SCC promotes local
communities.
Casa Grande, social investment fund,
calls for projects and corporate
volunteer.
Our goals, create share value
and promote the development
of the communities were we
operate.
We are immersed in a rich
and diverse environment,
with communities in
which we seek to create
opportunities and
contribute to generate
internal processes of
transformation.
OUR COMMUNITIES
As a company, we are immersed in a rich and diverse environment, with
communities in which we seek to create opportunities and contribute
to generate internal processes of transformation, prioritizing installation
capabilities that allow efforts to transcend and become a vehicle for
change. Our model of community development parts from this approach,
and it is implemented through different tools: Community Committees,
Casa Grande, social investment fund, calls for projects and corporate
volunteer.
Aligned with our goal of creating value and promoting development of
the communities of which we are part, we implemented strong programs
of social bonding suited to the needs and situations of the locations
where we operate, Mexico and Peru. We understand social welfare as
the synergy of different factors that we aim to strengthen through a multi-
strategy, in close dialogue with communities. Therefore we strengthen
health, education, culture and sports, among others.
INVESTING IN COMMUNITY DEVELOPMENT (DOLLARS)
PROGRAM
Community development
Social linking
Community development programs
Sponsorships and donations
36 | 37
SCC
$
641,396
$ 8,003,291
$ 10,568,565
Infrastructure and equipment in neighboring communit6ies
$ 50,066,980
Employees and communities
Investment in Education
Sport and cultural programs
Investment in town site infrastructure
Total
$
$
$
586,592
898,001
15,034,969
$
85,799,794
ANNUAL REPORT 2015
38 |
$85.79 million were invested
in community development.
Our community centers are
meeting points, coexistence
and building of shared value.
From community diagnosis, where local people are involved, we identify
the needs and expectations to prioritize working opportunities, which are
channeled through the Casa Grande model. This model consists of own
company initiatives materialized through our team of experts, volunteers
from the Company, the community, and community centers created as
a meeting point, coexistence and building of shared value. In 2015, it
included the participation of 6,946 community volunteers who were the
key to increase the social capital of the areas in which we operate.
In addition, calls in order to encourage community organizations to submit
their own initiatives are made. In 2015, education and environment were
established as key themes of work, as well as health and safety and
productive development as complementary subjects. Also, for us, children
and youth are a priority, because we know that giving them special
attention, we go beyond the generations that will set the standard in the
future. The projects presented in these calls are evaluated by community
committees, mixed composed groups in which both, SCC as well as the
community, participate, promoting dialogue and citizen participation.
For us, children and
youth are a priority.
DIVISIÓN 38 | 39
PERU
At year-end 2015, 13 SCC operations and exploration
units in Mexico, distributed in 8 states, have implemented
In Peru, our commitment to the community focused in
the Casa Grande model. Five calls for projects were
three areas: education and capacity building, health
launched and 66 initiatives were funded. Thus, we
and nourishment, and infrastructure and support for the
continue promoting our Meaningful Development vision,
farming industry.
with long-term vision and strategic building of alliances to
strengthen communities we are part of.
Our operations are located in the south of Peru, in an
agricultural and livestock environment where water is a
SCC also seeks to create value through social investments
key resource. We seek to expand capacity development
so that communities have at their disposal facilities and
and self-management of communities and, with this
spaces that contribute to the quality of life. In early 2015,
approach, we are contributing to the development of
the Cananea Regional Hospital of Specialist was opened.
water supply infrastructure, as well as projects of irrigation
Built with a trilateral investment by the Federal Government,
modernization, strengthening fruit production and livestock
the Sonora State Government and the Company, we
in the provinces of Candarave and Jorge Basadre.
contributed with more than $ 7 million. It is the first center
with open access in Mexico, serving beneficiaries of any
Four water storage structures for irrigation were completed
medical services as well as people without it, potentially
and the construction of 9 channels for Candarave began
benefiting a population of 35,000 residents.
with construction of 4,888 linear meters as well as the
ANNUAL REPORT 2015 40 |
In emergency, SCC takes
care for people health.
Cananea Regional Hospital was built with a trilateral investment
by the Federal Government, the Sonora State Government and
the Company.
building of pressurized irrigation modules for 231 plots
the end of the year, program participants had already
and 466 hectares in Ite district.
established two companies in which they applied the
We have also launched the Candarave Development Fund
knowledge acquired.
for the implementation of priority projects identified by the
Our support for future professionals it is expressed
authorities and communities participating in a roundtable
in undertaking programs like “Young Enterprises to
dialogue, which also supports the economic development
Success”, by which 508 participants were trained in
of the area by hiring local companies for construction of
business management, marketing, finance and personal
the projects.
development, among other topics. Notably, 15 of the
participants were awarded initial seed capital to start their
Supporting women’s entrepreneurial programs is also one
businesses.
of our program goals, thereby creating opportunities for
professional development and contributing to strengthen
In health and nutrition, in 2015 we continued our
the economy of families. In the Peruvian province of
commitment to support community health workers, a key
Mariscal Nieto we developed the “Women Entrepreneurs
part in the sustainability and development of educational
of Torata”, training 40 women in bakery and dairy and
activities to strengthen mothers, fathers and authorities
nectar processing. We are pleased to report that, before
of the various communities of the Province of Candarave
DIVISIÓN 40 | 41
through programs,such as demonstration sessions using local products,
training and tracking and monitoring newborns through early childhood.
By developing prevention campaigns and health care, residents of the
provinces of Jorge Basadre and Candarave have benefited, managing to
improve the quality of life of low income and vulnerable people.
Similarly, we are working on the implementation of public infrastructure
for the community, and was the first contributor to the Consortium of
Companies with Major Investment Commitment, effort awarded in 2015
by the private investment promotion agency, Proinversion. In addition,
in collaboration with the various governmental entities in Peru, we seek
to develop projects that deliver high social performance and contribute
prominently to the development of the regions where we operate.
At Southern Copper Corporation we will keep our commitment to
continually improve the quality of life of the communities where we
operate, by encouraging community integration structures and collective
involvement, which will result in the common good and make people the
key agents of development.
Southern Copper
Corporation keeps
its commitment to
continually improve the
quality of life of the
communities where it
operates.
ANNUAL REPORT 2015 42 |
RESULTS OF
OPERATIONS
DIVISIÓN
42 | 43
$741.1 million net income
in 2015.
Operating cash cost
per pound, net of by-
product credits, was
$1.12.
ANNUAL REPORT 2015 44 |
Our 2015 operating cash cost
per pound of copper without by-
product revenues was $0.23 per
pound lower than in 2014.
We diluted our
operating cash costs
per pound through
higher production in
all our units.
SCC is a world class copper
producer.
DIVISIÓN 44 | 45
RESULTS OF OPERATIONS
THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013.
Our net income attributable to SCC in 2015 was $ 741.1 million or diluted
earnings per share of $0.93, compared with net income attributable
to SCC of $1,337.9 million or diluted earnings per share of $1.61 in
2014, and net income attributable to SCC of $1,618.5 million or diluted
earnings per share of $ 1.92 in 2013.
The Company presents its operating costs both including and excluding
the revenues of its byproducts (molybdenum, silver, sulfuric acid, etc.).
Excluded from its calculation of operating cash cost are the cost of
purchases of third parties metal, depreciation, amortization and depletion,
exploration, workers participation provisions and other items of non-
recurring nature, and the royalty charges.
The Company’s operating cash cost, as previously defined, for the three
years ended December 31, is as follows:
Operating Cash Cost without by-product revenues
Operating Cash Cost with by-product revenues
As seen on the chart above, our 2015 operating cash cost per pound of
copper without by-product revenues was $0.23 per pound lower than in
2014, a decrease of 11.8%. This was due to lower costs per pound from
production costs, as a result of higher production.
2015
2014
2013
(dollar per pound)
1.66
1.12
1.89
1.07
1.90
1.00
ANNUAL REPORT 2015 46 |
Net sales in 2015 were
$5,05 billion.
In 2015, average copper prices
per pound were $2.50 (LME) and
$2.51 (COMEX).
In 2015, copper sales volume of
copper reached 1,625.8 million
pounds.
DIVISIÓN 46 | 47
Net Sales: 2015-2014: Net sales in 2015 were
molybdenum and zinc prices and higher copper and
$5,045.9 million, compared to $5,787.7 million in 2014,
molybdenum sales volume. Copper made up 78.0% of
a decrease of $741.8 million or 12.8%. The decrease was
net sales in 2014, compared to 78.2% in 2013. Sales of
principally the result of lower metal prices, partially offset
by-products in 2014 totaled $1,269.7 million, compared
by an increase in copper and zinc sales volumes, which
to $1,298.1 million in 2013, a decrease of 2.2%.
increased 12.3% and 10.3%, respectively.
Prices: Sales: prices for the Company’s metals are
2014-2013: Net sales in 2014 were $5,787.7 million,
established, mainly by reference to the prices quoted
compared to $5,952.9 million in 2013, a decrease of
in the London Metal Exchange (LME) and The New York
$165.2 million or 2.8%. The decrease was principally the
Commodity Exchange (COMEX), or published in the
result of lower copper and silver prices as well as lower
Platt’s Metals Week, for dealer oxide mean prices for
silver and zinc sales volume, partially offset by higher
molybdenum.
Price/Volume Data
Average metal prices
Copper (per pound - LME)
Copper (per pound - COMEX)
Molybdenum (per pound)
Zinc (per pound - LME)
Silver (per ounce - COMEX)
2015
2014
2013
$
$
$
$
$
2.50
2.51
6.59
0.88
15.68
$
$
$
$
$
$
$
$
$
3.11
$ 3.32
3.12
$ 3.34
11.30
$
10.26
0.98
$ 0.87
19.04
$
23.82
2014
2013
1,448.0
51.0
201.5
14.6
$
$
$
$
1,382.4
43.9
218.5
16.6
SALES VOLUME (in thousands)
2015
Copper (pounds)
Molybdenum (pounds) (1)
Zinc (pounds)
Silver (ounces)
1,625.8
51.2
222.2
14.5
(1) The Company´s molybdenum production is sold in the form of concentrates. Volume represents pounds of molybdenum contained in concentrates .
ANNUAL REPORT 2015
48 |
ENVIRONMENTAL
MATTERS
DIVISIÓN
48 | 49
Environmental capital expenditures in 2015 were
$120.8 millions.
We comply with all
environmental regulations.
Our operations are
environmentally friendly
in the mining industry.
ANNUAL REPORT 2015 ENVIRONMENTAL MATTERS
ENVIRONMENTAL MATTERS
The Company has instituted extensive environmental conservation
programs at its mining facilities in Peru and Mexico. The Company’s
environmental programs include, among others, water recovery
systems to conserve water and minimize impact on nearby streams,
reforestation programs to stabilize the surface of the tailings dams and
the implementation of scrubbing technology in the mines to reduce
dust emissions.
Environmental capital expenditures in years 2015, 2014 and 2013,
were as follows (in millions):
2015
2014
2013
Mexican operations
Peruvian operations
Total
$
$
$
98.8
$
24.4
$
39.8
22.0
127.0
76.9
120.8
$
151.4
$
116.7
MEXICAN OPERATIONS
The Company’s operations are subject to applicable Mexican federal,
state and municipal environmental laws, to Mexican official standards,
and to regulations for the protection of the environment, including
regulations relating to water supply, water quality, air quality, noise
levels and hazardous and solid waste.
The principal legislation applicable to the Company’s Mexican operations
is the Federal General Law of Ecological Balance and Environmental
Protection (the “General Law”), which is enforced by the Federal
Bureau of Environmental Protection (“PROFEPA”). PROFEPA monitors
compliance with environmental legislation and enforces Mexican
environmental laws, regulations and official standards. PROFEPA may
51
We are a responsible social
company.
In Mexico, PROFEPA must inform
corresponding authorities regarding
environmental non-compliance.
We comply with the
Federal General Law
of Ecological Balance
and Environmental
Protection.
initiate administrative proceedings against companies
actions by means of which 30 or more people claiming
that violate environmental laws, which in the most
injury derived from environmental, consumer protection,
extreme cases may result in the temporary or permanent
financial services and economic competition issues will
closing of non-complying facilities, the revocation of
be considered to be sufficient in order to have a legitimate
operating licenses and/or other sanctions or fines.
interest to seek through a civil procedure restitution or
Also, according to the federal criminal code, PROFEPA
economic compensation or suspension of the activities
must
inform corresponding authorities
regarding
from which the alleged injury derived. The amendments
environmental non-compliance.
to the CFPC may result in more litigation, with plaintiffs
seeking remedies, including suspension of the activities
In 2011, the General Law was amended, giving an
alleged to cause harm.
individual or entity the ability to contest administrative
acts, including environmental authorizations, permits or
In 2013, the Environmental Liability Federal Law was
concessions granted, without the need to demonstrate
enacted. The law establishes general guidelines in
the actual existence of harm to the environment because
order to determine which environmental actions will
it will be sufficient to argue that the harm may be
be considered to cause environmental harm that will
caused. In addition, in 2011, amendments to the Civil
give rise to administrative responsibilities (remediation
Federal Procedures Code (“CFPC”) were enacted. These
or compensations), criminal responsibilities as well as
amendments establish three categories of collective
monetary fines.
ANNUAL REPORT 2015 52 |
52 |
On August 6, 2014, an accidental spill of approximately
announced the filing of a criminal complaint against
40,000 cubic meters of copper sulfate solution occurred
BVC in order to determine the responsibility for the
at a leaching pond that was under construction ten
environmental damages. The Company is vigorously
kilometers away from the mine of Buenavista del Cobre,
defending itself against this complaint. As of December
S.A. de C.V. (“BVC”) a subsidiary of the Company. The
31, 2015, the case remains in the procedural stages
accident was caused by a rock collapse that affected
and it is still pending resolution. On September 15,
the system’s pumping station and by a construction
2014, BVC executed an administrative agreement with
defect in the seal of a pipe in the leaching system
PROFEPA, providing for the submission of a remediation
containment dam, a part of the new SX-EW III plant.
action plan to the Mexican Ministry of Environment
This solution reached the Bacanuchi River and the
and Natural Resources (Secretaria de Medio Ambiente
Sonora River. Immediate actions were taken in order
y Recursos Naturales “SEMARNAT”). The remediation
to contain the spill, and to comply with all the legal
program submitted to SEMARNAT was approved on
requirements.
January 6, 2015. This program will be developed in five
zones along the rivers. As of December 31, 2015, the
The National Water Commission,
the Federal
Company informed SEMARNAT of the conclusion of the
Commission for the Protection against Sanitary and
clean-up and soil remediation actions in phase one of
PROFEPA initiated administrative proceedings regarding
zone one. Remediation activities in phase two of zone
the spill to determine possible environmental and health
one are expected to be concluded in February 2016.
damages. On August 19, 2014, PROFEPA, as part of
The Company has already obtained approval of the
the administrative proceeding initiated after the spill,
monitoring programs for zones two to five.
DIVISIÓN 52 |
52 | 53
The Company also created a trust with Nacional Financiera S.N.C., a
Mexican development bank, acting as a Trustee to serve as a vehicle to
support environmental remedial actions in connection with the spill, to
comply with the remedial action plan and to compensate for damages
caused to persons adversely affected by the spill. The Company
committed up to two billion Mexican pesos (approximately $150
million) of which approximately one billion Mexican pesos have already
been contributed. A technical committee of the trust was created
with representatives from the federal government, the Company and
specialists assisted by a team of environmental experts to ensure
the proper use of the funds. Along with the administrative agreement
executed with PROFEPA, the trust serves as an alternative mechanism
for dispute resolution to mitigate public and private litigation risks.
Independently of the execution of the administrative agreement with
PROFEPA and the creation of the above mentioned trust, the Company
has taken actions to clean the sites since the day of the copper solution
spill. On August 29, 2014, the Company hired contractors to clean
the river utilizing more than 1,200 of their workers and environmental
specialists.
ANNUAL REPORT 2015 54 |
In addition, the Company developed a service program for the residents
of the Sonora River Region, including (i) water distribution provisions, and
infrastructure development within the affected region, (ii) the expansion
of the current Community Development program to communities further
downstream that were affected and previously not within the scope of
the Company´s program, (iii) attention to local farmers and producers in
coordination with the Federal Agriculture, Livestock, Rural Development,
Fisheries, and Alimentations Ministry in order to revamp and promote
the activities of local farmers and producers, (iv) the implementation of
sustainable productive projects at each affected site, as well as (v) the
establishment of service desks to attend specific cases.
On March 2, 2015 as a result of four administrative proceedings,
PROFEPA imposed administrative fines on BVC for an aggregate amount
of 23.5 million Mexican pesos (approximately $1.7 million).
The Company reasonably considers that none of the legal proceedings
resulting from the spill, individually or in the aggregate, would have a
material effect on its financial position or results of operations.
PERUVIAN OPERATIONS
The Company’s operations are subject
to applicable Peruvian
environmental laws and regulations. The Peruvian government, through
the Ministry of Environment (“MINAM”) conducts annual audits of the
Company’s Peruvian mining and metallurgical operations. Through
these environmental audits, matters related to environmental obligation,
compliance with legal requirements, atmospheric emissions, effluent
monitoring and waste management are reviewed.
The Company believes that it is in material compliance with applicable
Peruvian environmental laws and regulations. Peruvian law requires
that companies in the mining industry provide assurances for future
closure and remediation. In accordance with the requirements of this
The Company
developed a service
program for the
residents of the
Sonora River Region,
Mexico.
DIVISIÓN 54 | 55
Our mine operations are
social responsible.
The Company believes that all of its facilities in Mexico
and Peru are in material compliance with applicable
environmental, mining and other laws and regulations.
law, the Company’s closure plans were approved by MINEM. As part of
the closure plans, the Company is providing guarantees to ensure that
sufficient funds will be available for the asset retirement obligation.
See Note 10 “Asset retirement obligation,” for further discussion of
this matter. In accordance with the requirements of the law, in 2015
the Company submitted the closure plans for the Tia Maria project and
for the Toquepala expansion. The process of review and approval of
closure plans usually takes several months.
In 2008, the Peruvian government enacted environmental regulations
establishing more stringent air quality standards (“AQS”) for daily sulfur
dioxide (“SO2”) in the air for the Peruvian territory. These regulations,
as amended in 2013, recognize distinct zones/areas, as atmospheric
basins. Those areas with a mean 24-hour SO2 concentration equal or
less than 20 micrograms per cubic meter (“ug/m3”) are required to
develop programs to maintain this level of compliance. Those areas or
The Company
is providing
guarantees to
ensure that
sufficient funds
will be available
for the asset
retirement
obligation.
ANNUAL REPORT 2015 56 |
56 |
MINAM has established
three atmospheric basins
that require further
attention to comply with
80ug/m3 of SO2.
cities exceeding the mean 24-hour SO2 concentration of
20 ug/m3 will be required to establish an action plan to
amount of such contingency. The Company and other
industries affected by this supreme decree believe that
address this problem and are required to achieve the 20
the lack of further regulations and direction from the
ug/m3 AQS in the future. Meanwhile they are required to
government has delayed the full review and analysis
achieve mean 24-hour AQS equal to 80 ug/m3 of SO2.
of the necessary actions to establish compliance.
Pending further government action, the Company will
MINAM has established three atmospheric basins that
continue to work with its study group to analyze this
require further attention to comply with 80ug/m3 of SO2.
The Ilo basin is one of these three areas and the Company’s
issue. Furthermore, the Company does not believe it
can estimate a reasonable range of possible costs until
smelter and refinery are part of the area. A supreme decree
additional direction is received from the government.
issued on April 8, 2014, indicates that mining companies
Therefore, currently the Company is not able to disclose
should review their compliance with these regulations
a range of costs that is meaningful.
and develop a modification plan to reach compliance.
The Company continues working with an environmental
In 2013, the Peruvian government enacted new soil
technical study group, established by a MINAM resolution
environmental quality standards
(“SQS”) applicable
to identify activities, goals, deadlines, timetables and to
to any existing facility or project that generates or
develop an action plan in order to achieve compliance.
could generate risk of soil contamination in its area of
operation or influence. In March 2014, MINAM issued a
While the Company believes that a potential loss
supreme decree which establishes additional provisions
contingency may exist, it cannot currently estimate the
for the gradual implementation of SQS. Under this rule
DIVISIÓN 56 |
56 | 57
the Company had twelve months to identify contaminated sites in and
around its facilities and present a report of identified contaminated
sites. This report was submitted to MINEM in April 2015. After a review,
MINEM should evaluate and issue a report to the Company which will
allow it to continue with the next phase. Currently, the Company is
awaiting an official response from MINEM. Once MINEM notifies the
Company, it must prepare a characterization study to determine the
depth, extent and physio-chemical composition of the contaminated
areas and to define an appropriate remediation plan and the time-
frame in which it will take place. In addition, the Company must submit
for approval a Soil Decontamination Plan (SDP) within 24 months after
being notified by the authority. This SDP shall include remediation
actions, a schedule and compliance deadlines. Also, under this rule, if
deemed necessary, the Company may request a one year extension for
the decontamination plan, given sound justification.
Soil confirmation tests must be carried out after completion of
decontamination actions (within the approved schedule) and results
must be presented to authorities within 30 days after receiving such
results. Non-compliance with this obligation or with decontamination
ANNUAL REPORT 2015 58 |
DIVISIÓN 58 | 59
The Company believes that all of its facilities in Mexico and Peru are in
material compliance with applicable environmental, mining and other laws and
regulations.
goals will carry penalties, although no specific sanctions have been
established yet. During compliance schedule, companies cannot be
penalized for non-compliance with the SQS.
While the Company believes that there is a reasonable possibility that
a potential loss contingency may exist, it cannot currently estimate the
amount of the contingency. The Company believes that a reasonable
determination of the loss will be possible once the characterization study
and the SDP are substantially completed. Then the Company will be in
a position to estimate the remediation cost. Further, the Company does
not believe that it can estimate a reasonable range of possible costs
until the noted studies have progressed substantially and therefore is
not be able to disclose a range of costs that is meaningful.
The Company believes that all of its facilities in Mexico and Peru are in
material compliance with applicable environmental, mining and other
laws and regulations.
The Company also believes
that continued compliance with
environmental laws of Mexico and Peru will not have a material adverse
effect on the Company’s business, properties, result of operations,
financial condition or prospects and will not result in material capital
expenditures.
ANNUAL REPORT 2015 60 |
GENERAL
INFORMATION
DIVISIÓN
60 | 61
Our mines, smelters & refineries are
located in Mexico and Peru.
Southern Copper Corporation
is one of the largest
integrated copper producers
in the world.
We produce copper, molybdenum,
zinc, lead, coal and silver.
ANNUAL REPORT 2015 62 |
GENERAL INFORMATION
Information related to its constitution and their inscription in the Public
Registry:See: “Brief historical review from the constitution of the
Company” on page 75. Brief Description: Southern Copper Corporation
is one of the largest integrated copper producers in the world. We
produce copper, molybdenum, zinc, lead, coal and silver. All of our
mining, smelting and refining facilities are located in Peru and in Mexico
and we conduct exploration activities in those countries and in Chile,
Ecuador and Argentina. Our operations make us one of the largest
mining companies in Peru and also in Mexico. We are one of the largest
copper mining companies in the world with significant copper reserves.
We were incorporated in Delaware in 1952 and have conducted copper
mining operations since 1960. Since 1996, our common stock has
been listed on both the New York and the Lima Stock Exchanges.
DIVISIÓN 62 | 63
Our Peruvian copper operations involve mining, milling
SX/EW plants. The Buenavista mine was operated until
and flotation of copper ore to produce copper concentrates
December 11, 2010 by Mexicana de Cananea S.A. de
and molybdenum concentrates, the smelting of copper
C.V. and by Buenavista del Cobre S.A. de C.V. from that
concentrates to produce anode copper, and the refining
date until July 2012. Industrial Minera Mexico, S.A. de
of anode copper to produce copper cathodes. As part
C.V. (together with its subsidiaries, the “IMMSA unit”)
of this production process, we also produce significant
operates five underground mines that produce zinc, lead,
amounts of molybdenum concentrate and refined silver.
copper, silver and gold, a coal mine and a zinc refinery.
We also produce refined copper using SX/EW technology.
Effective February 1, 2012, Minerales Metalicos del
We operate the Toquepala and Cuajone mines high in
Norte S.A was merged with Industrial Minera Mexico S.A.
the Andes Mountains, approximately 860 kilometers
de C.V. (IMMSA). IMMSA absorbed Minerales Metalicos
southeast of the city of Lima, Peru. We also operate a
del Norte S.A.
smelter and refinery west of the Toquepala and Cuajone
mines in the coastal city of Ilo, Peru.
We utilize modern/state of the art mining and processing
methods, including global positioning systems and
Our Mexican operations are conducted through our
computerized mining operations. Our operations have a
subsidiary, Minera Mexico S.A. de C.V.
(“Minera
high level of vertical integration that allows us to manage
Mexico”), which we acquired in 2005. Minera Mexico
the entire production process, from the mining of the ore
engages principally in the mining and processing of
to the production of refined copper and other products
copper, molybdenum, zinc, silver, gold and lead. Minera
and most related transport and logistics functions, using
Mexico operates through subsidiaries that are grouped
our own facilities, employees and equipment.
into three separate units. Mexicana de Cobre S.A. de
C.V. (together with its subsidiaries, the “Mexcobre unit”)
operates La Caridad, an open-pit copper mine, a copper
ore concentrator, a SX/EW plant, a smelter, refinery and
a rod plant.
Operadora de Minas e Instalaciones Mineras S.A de
C.V.
(the “Buenavista unit”) Operates Buenavista,
formerly named Cananea, an open-pit copper mine,
which is located at the site of one of the world’s largest
copper ore deposits, a copper concentrator and two
Minera Mexico engages
principally in the mining
and processing of copper,
molybdenum, zinc, silver, gold
and lead.
ANNUAL REPORT 2015
GENERAL INFORMATION
ECONOMIC GROUP
SCC, indirectly, is part of “Grupo Mexico S.A.B. de C.V.” which owns 100% of Americas Mining Corporation (“AMC”).
SEVERAL ACTIVITIES
Grupo Mexico, S.A.B. de C. V.
Grupo Mexico Servicios, S.A. de C.V.
LOCATION
INSCRIPTION
IN THE RPMV
%
Mexico
Mexico
ACTIVIDADES DE TRANSPORTE FERROVIARIO
Infraestructura y Transportes Mexico, S.A. de C. V.
Mexico
MINING ACTIVITIES
Americas Mining Corporation (“AMC”)
Southern Copper Corporation (SCC)
Americas Sales Company, Inc.
Minera Mexico, S. A. de C. V.
Industrial Minera Mexico, S.A. de C. V.
Buenavista del Cobre, S.A. de C. V.
Mexicana de Cobre, S.A. de C. V.
Mexicana del Arco, S.A. de C.V.
Minera Mexico Internacional, Inc.
EE.UU.
EE.UU.
EE.UU.
Mexico
Mexico
Mexico
Mexico
Mexico
EE.UU.
Operadora de Minas e instalaciones Mineras, S.A. de C.V.
Mexico
Servicios de Apoyo Administrativo, S.A. de C.V.
Southern Peru Limited
Southern Peru Copper Corporation, Agencia en Chile
Southern Peru Copper Corporation, Sucursal del Peru
Compañia Minera Los Tolmos, S.A.
Mexico
EE.UU.
Chile
Peru
Peru
100
100
100
88.57
100
99.96
100
100
98.2
100
100
100
100
100
100
ü
99.291
97.31
NAME OF THE
COMPANY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
1 Include 82.69% of common shares and 16.60% of investment shares.
65
ANNUAL REPORT 2015 66 |
DIVISIÓN 66 | 67
CORPORATE CAPITAL AND COMMON STOCK
Shares
The authorized number of shares
Issues an Paid Capital: Common Shares
2,000,000,000
884,596,086
Nominal Value of Common Shares
$
0.01
TOTAL NUMBER AND PERCENT OF SHARES
Shares
Americas Mining Corporation
Common Shares
Total
687,275,997
88,666,273
775,942,270
Interest
88.6%
11.4%
100.0%
OPERATIONS IN MEXICO
LA CARIDAD MINE
“La Caridad Concentrator” started operations in 1979. The concentrator
has a current capacity of 94,500 tons of ore per day. “Molybdenum
Plant” started operations in 1982, with a production capacity of 2,000
tons of copper-molybdenum concentrate per day.
“La Caridad SX-EW” has an annual production capacity of 21,900
tons of copper cathodes. Approximately 663.3 million tons of leach
ore with an average grade of approximately 0.247% copper have been
extracted from the La Caridad open-pit mine and deposited in leaching
dumps from May 1995 to December 31, 2012.
LA CARIDAD METALLURGIC COMPLEX
La Caridad Smelter started operations in July, 1986, with a production
capacity of 493 tons of anode per day and was expanded to 822 tons in
March, 1997. The actual installed capacity of the smelter is 1,000,000
tons per year.
ANNUAL REPORT 2015
68 |
“La Caridad Refinery” started operations in July, 1997,
“Buenavista SX/EW I Plant” started operating in 1980,
with a production capacity of 493 tons of copper cathode
with a capacity of 30 tons per day.
per day and was expanded to 822 tons in January, 1998.
The installed capacity of the refinery is 300,000 tons per
“Buenavista SX/EW II Plant” started operating in 1989,
year.
with a capacity of 66 tons per day and was expanded to
120 tons per day in 2001.
“La Caridad Precious Metals Plant” started operations in
May, 1999, with a production capacity of 43,836 ounces
“Buenavista SX/EW III Plant” started operating during the
of silver per day, 247 ounces of gold per day and 342
fourth quarter of 2014, we completed the construction
kilograms of selenium per day.
of a new SX-EW plant that will significantly increase
production of leachable material by approximately
“La Caridad Wire Rod Plant” started operating in April,
120,000 tons per year. (See 10K, on page 64).
1998, with a production capacity of 300 tons of wire rod
per day and was expanded to 411 tons in March 1999.
UNDERGROUND MINES
1.- The Santa Barbara Unit with a milling capacity of
BUENAVISTA MINE
5,800 tons of ore per day.
“Buenavista Concentrator”
started
operating
in
2.- The Santa Eulalia Unit with a milling capacity of
September, 1986, with a capacity of 62,500 tons per
1,450 tons of ore per day.
day; the capacity was expanded to 70,000 tons in 1988
3.- The San Martin Unit with a milling capacity of 4,400
and to 76,700 tons in 1998.
tons of ore per day.
DIVISIÓN 68 | 69
4.- The Charcas Unit with a milling capacity of 4,100 tons of ore per
day.
5.- The Taxco Unit with a milling capacity of 2,000 tons per day.
6.- Coquizadora Coal Plant, in Coahuila Unit, with a capacity of
105,000 tons of coke per year.
7.- The Zinc Refinery with a capacity of 288 tons per day.
PERUVIAN OPERATIONS
TOQUEPALA
1. “Toquepala Concentrator”. Directorial Resolution No.455-91-EM/
DGM/DCM dated July 5, 1991 approved the operation of the Toquepala
Concentrator. The resolution granted 240 hectares of surface land and
authorized a throughput of 39,000 tons/day.
Based on Report No. 413-97-EM/DGM/DPDM dated July 7, 1997
the “Director General de Mineria” authorized the expansion of the
Toquepala Concentrator to a 43,000 tons/day throughput.
ANNUAL REPORT 2015 GENERAL INFORMATION
70 |
Based on Report N° 547-2002-EM/DGM/DPDM, dated November 6,
2002, the “Director General de Mineria” authorized the expansion of
the Toquepala Concentrator to a capacity of 60,000 MT per day.
2. “Toquepala Leaching Plant (SX/EW)”. Directorial Resolution No.
166-96-EM/DGM dated May 7, 1996, approved the operation of the
Toquepala SX/EW plant. The resolution granted 60 hectares of surface
land and authorized a throughput of 11,850 tons/day.
Based on Report No. 663-98-EM-DGM/DPDM dated November 10,
1998 the “Director General de Mineria” authorized construction and
expansion of Toquepala SX/EW plant to 18,737 tons/day throughput.
Directoral Resolution dated May 19, 2003, based on Report No.
291-2003-EM-DGM/DPDM, authorized operation of the SX/EW plant
to a throughput of 18,737 tons/day.
CUAJONE
1. “Botiflaca Concentrator” in Cuajone. Directorial Resolution No.
150-81-EM/DCM dated August 14, 1981 approved the operation of
Botiflaca Concentrator. The resolution granted 56 hectares of surface
land.
SCC, mining that
generates progress.
Based on Report No. 266-99-EM/DGM/DPDM dated July 20, 1999 the
“Director General de Mineria” authorized the expansion of Botiflaca
Concentrator to 87,000 MT per day throughput.
Resolution N° 379-2010-MEM-DGM/V dated October 7, 2010, based
on Report N°312-2010-MEM-DGM-DTM/PB, authorized construction
and expansion of Botiflaca Concentrator to 90,000 MT per day
throughput.
For operating reasons as part of the crusher process optimization, on
november 18, 2011, we requested to the Peruvian authorities through
70 | 71
Left: Sulfuric acid
plants.
Right: Ilo smelter, Peru.
Sulfuric acid is also used
in leaching operations in
Toquepala and Cuajone.
resources N° 214491 to add three additional facilities
authorized the of the, with a capacity of 3100 MT per
(HPGR mill and others).
With Directoral Resolution N° 153-2012-MEM-DGM-V
day.
ILO
based on report 165-2012-MEM-DGM-DTM-PB. MEM
1. Ilo Smelter: Authorized (definitely) by Directorial
approved and authorized the project to include three
Resolution. No. 078-69-EM/DGM dated August 21,
additional facilities aforementioned on the procedure of
1969 approved the operation of the Ilo Smelter. The
the amendment and increase of the installed capacity
resolution authorized a production of 400 Short tons/day
from 87,000 to 90,000 MT per day.
of blister copper.
2. “Cuajone Leaching Plant (LX/EW)”. Directorial
Based on Report No.204-2000-EM-DGM-DPDM dated
Resolution No.155-96-EM/DGM dated May 6, 1996
June 20, 2000 the “Director General de Mineria”
approved the operation of the Cuajone Leaching plant.
authorized the expansion of the Ilo Smelter to a 3,100
The resolution granted 400 hectares of surface land and
MT per day throughput of copper concentrates.
authorized a throughput of 2,100 MT per day. Based on
Report No. 988-2009-MEM-DGM/V, dated December
On February 4, 2010, the Company began the process
16, 2009, Cuajone SX plant operation was approved and
to obtain authorization from the MINEM to operate a
ANNUAL REPORT 2015 GENERAL INFORMATION
72 |
capacity of 3,770 MT per day, which is included as an
Based on Report N° 080-2002-EM-DGM/DPDM, dated
ancillary facility to Acid Plant No. 2, with a capacity of
March 14, 2002, the “Director General de Mineria”
2,880 MT per day or 1,051,200 MT per year.
authorized the expansion of the Ilo Copper Refinery to a
capacity of 800 MT per day.
2. “Ilo Refinery”: 1.
Authorized by Report No. 056-
94-EM/DGM/DRDM dated May 27, 1994 the “Director
Resolution N°520-2010-MEM-DGM/V dated December
General de Mineria” authorized the operation of the Ilo
30, 2010, based on Report N° N°414-2010-MEM-
Copper Refinery at 533 MT per day throughput of blister
DGM-DTM/PB, authorized changes in Ilo copper refinery
copper.
without expanded its capacity throughput.
Based on Report No. 506-97-EM/DGM/DPDM dated
3. “Sulfuric Acid Plant”. Authorized by Directorial
September 2, 1998 the “Director General de Mineria”
Resolution No. 024-96-EM/DGM dated January 19,
authorized the expansion of Ilo Copper Refinery to a
1996, approved the operation of the sulfuric acid plant,
capacity of 658 MT per day throughput.
installed at the smelter, at a production rate of 150,000
tons per year.
Ilo copper refinery,
Peru.
The Ilo copper
refinery has a
capacity of 800 MT
per day.
72 | 73
Based on Report No. 313-98-EM/DGM/DPDM dated May 21, 1998
the “Director General de Mineria”, authorized the expansion of the Ilo
Sulfuric Acid Plant to a capacity of 300,000 tons per year production.
4. “Coquina Wash Plant and Sea shell Concentrates” authorized
to operate by Directorial Resolution Nº 110-93-EM/DGM of August 3,
1993. The plant processes 95 TC/h of raw material (coquina) recovered
from nearby mines. Seashell is produced separating sand and other
materials from the coquina using sea water washing screens.
Resolution N°038-2011-MEM-DGM-DTM/PB dated February 2,
2012, based on Report N°035-2011-MEM-DGM-DTM/PB, authorized
modification in the concession of “Coquina Wash Plant and Sea shell
Concentrates” to a classified dry sea shell plant without expanded its
capacity throughput, which represents 2,068 tons/day.
ANNUAL REPORT 2015 74 |
Buenavista del
Cobre.
DIVISIÓN 74 | 75
DESCRIPTION OF OPERATIONS AND
DEVELOPMENT REGARDING THE ISSUING
ENTITY PURPOSE
THE PURPOSE
The purpose of Southern Copper Corporation (SCC) is to engage
in activities allowed by the laws of the State of Delaware. Its main
activity is to extract, mill, concentrate, smelt, treat, prepare for market,
manufacture, sell, exchange and, in general, to produce and negotiate
for sales of copper, molybdenum, gold, silver, lead, zinc, iron and any
other class of minerals and materials or other materials, effects and
goods of any nature or description; as well as to explore, exploit, sample,
examine, investigate, recognize, locate, appraise, buy, sell, exchange,
etc., mining concessions and mining deposits. SCC belongs to the CIIU
1320 group.
The term of duration of the Company is indefinite.
BRIEF HISTORICAL REVIEW FROM THE CONSTITUTION OF THE COMPANY:
The Company was organized on December 12, 1952, according to
the Laws of the State of Delaware of the United States of America,
under the original denomination of Southern Peru Copper Corporation
(“SPCC”), which was renamed on October 11, 2005, to Southern
Copper Corporation (SCC).
In 1954, SCC established a Branch in Peru to carry out mining activities
in this country. The Branch was established under public instrument
certified by Public Notary from Lima, Dr. Ricardo Fernandini Arana, on
November 6, 1954.
The Branch is registered in the Electronic Record Nº 03025091 of the
Juridical People of the Registry Office of Lima and Callao.
ANNUAL REPORT 2015
76 |
ACTIONS FOLLOWING COMPANY INCORPORATION:
Part of the money contribution made by the Company in
Capital increase:
favor of its Branch and by the Labor Shares owners was
applied as a capital premium to the Resident account as
By Public Deed dated May 31, 1995, signed before
Additional Capital.
notary public of Lima, Dr. Carlos A. Sotomayor Bernos,
the Branch capital increase was formalized. It was made
EXCHANGE OF INVESTMENT SHARES (LABOR SHARES)
through money contribution by the Company in favor of its
FOR COMMON SHARES:
Peru Branch and by the owners of labor shares, pursuant
Dated September 7, 1995, “Southern Peru Copper
to Legislative Decree No. 677. The capital contribution
Holding Company” was also incorporated pursuant to
made by the Company was aimed at increasing the
the Laws of the State of Delaware, aiming at acting as
capital allotted to the Branch by the headquarters and
a holding company that owns all Southern Peru Copper
registered in Peru. The capital contribution made by the
Corporation shares, and at performing an exchange
Labor Shares (today Investment Shares) owners was
of the shares that were then called “Labor Shares”
assigned to the Labor Shares account of the Branch for
(today Investment Shares) issued by the branch in
issuing new Labor Shares.
Peru, delivering the owners of labor shares a certain
DIVISIÓN 76 | 77
number of common shares issued by SPCC in the United States. As a
consequence of this share exchange, former owners of Labor Shares
acquired 17.31% of SPCC’s Capital, and this company acquired
ownership of 80.77% of Labor Shares (today Investment Shares).
On December 31, 1995, Southern Peru Copper Corporation changed
its corporate name to “Southern Peru Limited”, and “Southern Peru
Copper Holding Company” changed its corporate name to Southern
Peru Copper Corporation.
As a consequence of this corporate name change, the mining activities
of the Company in Peru started being performed under the name of
Southern Peru Limited, Peru Branch (SPL).
On December 31, 1998, the merger between Southern Peru Copper
Corporation and Southern Peru Limited was agreed. The first company
absorbed the second one and assumed all its assets and liabilities,
including the Branch in Peru. This merger did not imply any change to
the share percentage in the corporate capital or in the Net Worth Share
Account (investment shares), which were kept the unchanged.
As a consequence of the merger, the mining activities of the corporation
in Peru were again carried out under the name of Southern Peru Copper
Corporation, Peru Branch, or the abbreviated name of “Southern Peru”
and/or the acronym SPCC.
CHANGE OF ECONOMIC GROUP:
In November 1999, Grupo Mexico S.A.B. de C. V., a firm incorporated
pursuant to the Laws of the Republic of Mexico, acquired in the
United States 100% of ASARCO Incorporated, the main shareholder
of Southern Peru Copper Corporation at that time. In this way, SPCC
ANNUAL REPORT 2015 78 |
became a subsidiary of Grupo Mexico, who keeps its shareholding
through Americas Mining Company (AMC).
ACQUISITION OF MINERA MEXICO (“MM”), AND OTHER CORPORATE
CHANGES:
SCC shareholders, in a shareholder extraordinary meeting dated March
28, 2005, approved issuance of Common Shares and required actions
related to the acquisition of MM, a firm incorporated pursuant to the
Laws of the Republic of Mexico. This transaction was approved by
more than 90% of the stocks and circulating capital of SCC. To acquire
Minera Mexico, SCC issued 67,207,640 shares in exchange for MM
shares. Once the shares related to the acquisition were issued, AMC
increased its share in SCC from 54.2% to approximately 75.1%.
AMC Increased its Participation in SCC
In 2008 and 2009 Grupo Mexico, through its wholly owned subsidiary
AMC, purchased 11.8 million and 4.9 million shares of the Company’s
common Stock, respectively.
DIVISIÓN 78 | 79
SCC $500 Million Share Repurchase Program
stock exchange or association in which Common Shares
In 2008, the Company’s Board of Directors (“BOD”)
are listed) and (ii) is appointed by the Special Appointment
authorized a $500 million share repurchase program
Committee of the Board. A special independent director
that has since been increased by the BOD and is
may only be removed from the Board upon a justified
currently authorized to $3 billion. Pursuant to this
cause.
program, the Company purchased common stock from
2008 to December 31, 2015. The Company purchased
The minimum number of special independent directors
116.6 million shares of its common stock for $2,846.6
in that Directory at any time shall equal (a) the total
million. These shares are available for general corporate
number of directors in the Board multiplied by (b) the
purposes. The Company may purchase additional
percentage of Common Shares all the shareholders (that
shares of its common stock from time to time, based
are not Grupo Mexico and its affiliates) have, rounding
on market conditions and other factors. This repurchase
up to the following integer number. Notwithstanding the
program has no expiration date and may be modified or
abovementioned, the total number of people appointed
discontinued at any time.
as special independent directors (not belonging to Grupo
Mexico) cannot be less than two or more than six.
At December 31, 2015, Grupo Mexico indirect ownership
is 88.6%.
Special Nominating Committee
The Special Nominating Committee functions as a
CHANGE IN THE CERTIFICATE OF INCORPORATION:
special committee to nominate special independent
On March 28, 2005, following Board of Directors
directors to the Board. Pursuant to our Amended and
recommendations, SCC shareholders approved in an
Restated Certificate of Incorporation, as amended, a
extraordinary meeting the amendments to the Articles
special independent director is any director who (i)
of Incorporation Deed, changing the composition and
satisfies the independence requirements of the New
obligations of some Board committees.
York Stock Exchange or NYSE (or any other exchange or
association on which the Common Stock is listed) and (ii)
SPECIAL INDEPENDENT DIRECTOR:
is nominated by the Special Nominating Committee. The
The changes to the Articles of Incorporation Deed
Special Nominating Committee has the right to nominate
require the Board to include a certain number of special
a number of special independent directors based on the
independent directors. A special independent director
percentage of our Common Stock owned by all holders
is a person who (i) complies with the independence
of our Common Stock, other than Grupo Mexico and its
standards of the New York Stock Exchange (or any other
affiliates.
ANNUAL REPORT 2015 GENERAL INFORMATION
80 |
The Special Nominating Committee consists of two directors (2) of whom
are Luis Miguel Palomino and Carlos Ruiz Sacristan (each an “Initial
Member” and, together with their successors, “Special Designees”) and
such other director, currently Xavier Garcia de Quevedo Topete, as may
be appointed by the Board of Directors or the “Board Designee”. The
Board Designee will be selected annually by the Board of Directors. The
Special Designees will be selected annually by the members of the Board
who are special independent directors or Initial Members. Only special
independent directors can fill vacancies on the Special Nominating
Committee. Any member of the Special Nominating Committee may be
removed at any time by the Board of Directors for cause. The unanimous
vote of all members of the nominating committee will be necessary for
the adoption of any resolution or the taking of any action.
Our Amended and Restated Certificate of Incorporation, as amended,
provides that the minimum number of special independent directors
on the Board of Directors at any given time shall be equal to (a) the
total number of directors on the Board of Directors multiplied by (b) the
percentage of Common Stock owned by all of the stockholders (other
than Grupo Mexico and its affiliates), rounded up to the next whole
number. Notwithstanding the foregoing, the total number of persons
nominated as special independent directors cannot be less than two or
greater than six.
Notwithstanding the foregoing, the power of the Special Nominating
Committee to nominate special independent directors is subject to the
rights of the stockholders to make nominations in accordance with our
by-laws.
The provisions of the Amended and Restated Certificate of Incorporation,
as amended, relating to special independent directors may only be
amended by the affirmative vote of a majority of the holders of shares
Grupo Mexico is
indirectly owner
of 88.6% of SCC
shares.
80 | 81
In 2008 and 2009 Grupo Mexico,
through its wholly owned
subsidiary AMC, purchased 11.8
million and 4.9 million shares of
the Company’s common Stock,
respectively.
ANNUAL REPORT 2015 82 |
DIVISIÓN 82 | 83
of Common Stock (calculated without giving effect to any
acquisition of some mining exploration concessions, and
super majority voting rights) other than Grupo Mexico
its exploration activities in the Republics of Argentina and
and its affiliates.
Ecuador.
TRANSACTIONS WITH AFFILIATES:
Additionally, on the same date, the majority shareholder
Amendments to the Deed also prohibit the Company
approved an amendment of our Articles of Incorporation
to commit in important transactions with the affiliates,
Deed to remove others’ provisions in our Deed related
except if the transaction has been revised by a committee
with our Class A Common Shares that were formerly in
of at least three Board members, each one of which will
circulation, which were converted to Common Shares on
comply with the New York Stock Exchange (or any other
May 19, 2005, and to change the number of Corporate
stock exchange or association in which Common Shares
directors from fifteen to a number that will be regularly
are listed) independence regulations. An important
established following agreement of most of Board
transaction of the affiliate is defined as an important
members stipulating the number of directors will not be
transaction, commercial negotiation or financial share
less than six or more than fifteen.
in any transaction, any series of transactions between
Grupo Mexico or one of its affiliates (different from the
The Deed amendment was submitted to the Secretary of
Company or any of the subsidiaries), on the one hand,
State of the State of Delaware, and came into effect on
and to the Company or one of the subsidiaries, on the
October 11, 2005.
other hand, comprising a total consideration of more
than $10.0 million.
PERU BRANCH NAME:
CHANGE OF CORPORATE NAME AND OTHER CORPORATE
should comprise the corresponding name of the ancillary
CHANGES:
organizations linked to it, as is the case of the Peru
On September 20, 2005, by written consent instead
Branch through which the Corporation develops its
Generally, the change of headquarters corporate name
of an extraordinary shareholder meeting, the majority
mining activities in Peru.
shareholder approved the corporate name change of
Southern Peru Copper Corporation to Southern Copper
After consulting with Peruvian lawyers, the Board of
Corporation or SCC. The change was adopted because
Directors, taking into consideration the net worth and
the new corporate name reflects more precisely the
assets importance of the Branch, the need to continue
Company’s operational reach outside the Republic
acknowledging the position of the Peruvian Branch with
of Peru after its acquisition of Minera Mexico and the
its local and international copper clients, the need to
latter’s presence in the Republic of Chile through the
preserve its proceeds and its position in good name in
ANNUAL REPORT 2015 GENERAL INFORMATION
84 |
Copper
cathodes.
SCC produces LME
grade A copper
cathodes.
Our copper cathodes
exceeds 99.99% of
copper.
84 |
85
the copper market, and the need to prevent any possible client loss,
as well as to guarantee the revenue flow from sales, its financial and
economic revenues and its solvency, the Board of Directors agreed
to maintain the original corporate name to the Peru Branch, that is,
Southern Peru Copper Corporation, Peru Branch, or the abbreviated
name “Southern Peru” and/or the acronym SPCC.
Changes in the Certificate of Articles of Incorporation and
Bylaws
Dated January 26, 2006, the Board approved amendment to Southern
Copper Corporation’s bylaws (i) aiming at removing the provisions
related to Class A Common Shares among other changes.(ii) adding a
new provision for advance notice to shareholders seeking to nominate
directors or to propose other business at annual or special meetings of
the Common Stockholders (as applicable) (iii) substitute Grupo Mexico
for ASARCO Incorporated in the “Change in Control” definition in the
Corporation’s by-laws (iv) and eliminate the 80% supermajority vote
requirement for certain corporate actions. The modification of the
Modified Certificate of Incorporation increased the capital stock from
167,207,640 shares to 320,000,000 shares. These modifications
were submitted for approval of the shareholders at the shareholders
annual meeting held on April 27, 2006 which was adjourned and
reconvened for May 4, 2006, and later on adjourned and reconvened
for May 11, 2006.
At the annual meeting, on April 27, 2006, the proposal to amend the
by-laws to eliminate certain extraneous provisions relating to the retired
series of Class A Common Stock had an affirmative vote of 79.85%
of the required votes. Because the required vote for the approval of
this proposal was 80% and because there were still votes that needed
to be tabulated, the annual meeting for this proposal was adjourned
until May 4, 2006. On May 4, 2006, at the adjourned and reconvened
ANNUAL REPORT 2015 86 |
meeting the stockholders approved the proposal with an
affirmative vote of 80.61% of the required votes.
On April 27, 2006, stockholders approved (i) the
amendment to the by-laws to introduce a new provision
for advance notice to shareholders seeking to nominate
directors or to propose other business at annual or special
meetings of the Common Stockholders (as applicable);
(ii) the amendment to the by-laws to substitute Grupo
Mexico for ASARCO Incorporated in the “Change in
Control” definition in the Corporation’s bylaws; (iii) the
On April 27, 2006, the proposal to amend the by-laws
to eliminate the 80% supermajority vote requirement
for certain corporate actions had received preliminary
votes, representing an affirmative vote of 78.35% of the
required votes. Because the required vote for the approval
of this proposal was 80% and because there were still
votes that needed to be tabulated, the annual meeting for
this proposal was adjourned first until May 4, 2006, and
subsequently until May 11, 2006. On May 11, 2006, at
the adjourned and reconvened meeting stockholders did
not approve the proposal having received an affirmative
amendments to the Amended and Restated Certificate
vote of 79.61% of the required votes.
of Incorporation to increase the number of shares of
Common Stock, which the Corporation is authorized to
issue from 167,207,640 shares to 320,000,000 shares;
and (iv) the selection of the independent accountants.
SCC is indirectly, part of Grupo Mexico S.A.B. de C.V.
which owns 100% of Americas Mining Corporation
(AMC) shareholding, owner of 88.6% of SCC shares.
DIVISIÓN 86 | 87
Southern Copper Corporation is one of the largest copper producers in the world
and expects to duplicate its production with its expansion programs.
INFORMATION ABOUT PLANS AND INVESTMENT POLICIES:
See Capital Expenditures and Exploration on page 16.
Special Mining tax
In September 2011, the Peruvian government enacted
Relationship between the Issuer and the Government
a new tax for the mining industry. This tax is based on
On November 20, 1996, SCC and the Peruvian
operating income and its rate ranges from 2% to 8.4%.
Government (Ministry of Energy and Mines) signed a
It begins at 2% for the first 10% of operating income
contract that remained effective until the year 2010
margin and for each additional 5% of operating income
and guaranteed the tax stability and the availability of
margin is increased by an additional rate of 0.4% until
exchange to foreign currency of the Branch’s earnings
85% of operating income margin is reached.
related to the operation of the SX/EW plant at Toquepala
and the Solvent Extraction (SX) operation in Cuajone.
Mining Royalty
Also, on April 18th, 1995, SCC and the Peruvian
In September 2011, the Peruvian Congress approved
Government (CONITE) signed a contract that remained
an amendment to the mining royalty charge. The new
effective during ten years and guaranteed the availability
mining royalty charge is based on operating income
of foreign currencies, free remittance of dividends to the
margins with graduated rates ranging from 1% to 12%,
exterior, among other guarantees related to the acid
with a minimum royalty charge assessed at 1% of net
plant of the Ilo Smelter.
sales. If the operating income margin is 10% or less,
the royalty charge is 1% and for each 5% increment in
SCC obtains refunds for tax credits in Peru for the general
the operating income margin, the royalty charge rate
sales tax (IGV) paid in connection with the acquisition
increases by 0.75%, up to a maximum of 12%.
of capital goods and other goods and services used in
its operations, counting these credits as a paid expense
in advance. By virtue of these refunds, SCC is entitled
to credit the amount of the IGV against its Peruvian tax
obligations or to receive a refund.
ANNUAL REPORT 2015 GENERAL INFORMATION
88 |
In 2015, we maintained
12 units in Mexico and
Peru whose Occupational
Safety and Health
Management System
have been certified
according to OHSAS
18001: 2007.
OPERATIONS IN MEXICO 2015
In Southern Copper Corporation, caring for the life, health and integrity
of our employees and their families is the number one priority in all our
operations. No task is more important.
Accordingly, our main commitment is to create optimal and safe work
environments for our employees, applying the highest safety and
occupational health standards. Our goal: ZERO accidents.
An Integrated Occupational Health and Safety Management System allows
us to implement effective processes and provide our employees knowledge
and skills necessary for the identification, control and mitigation of risks,
prioritizing actions and the necessary care in preventing accidents.
In 2015 we maintained 12 units in Mexico and Peru whose Occupational
Safety and Health Management System, have been certified according to
OHSAS 18001: 2007. Additionally, in Mexico we have 18 units certified
with the Secretariat of Labour and Social Welfare in Self-Managed
Occupational Health and Safety (PASST), endorsing our commitment to
best practices in health and safety at work.
The accomplishments achieved in 2015 on occupational health and
safety include:
• The Mining Chamber of Mexico (CAMIMEX) awarded the “Jorge
Rangel Zamorano” Silver Helmet Trophy to the SX-EW plant of
Mexicana de Cobre and SX-EW plant of Buenavista del Cobre, for
achieving the lowest recorded accident rates in the industry, as for
his efforts in the field of accident prevention.
• The occupational accident rates at our mining operations in Mexico
are 54% below de national average.
88 | 89
• In Peru, it was launched the process Safety Based on
As a result of the work and commitment of our people to
Behavior (SBC), which aims to reinforce safe behavior
safety and health, at the end of 2015 the accident rate
of individuals through observation and feedback
(IR) decreased significantly from 1.01 in 2013 to 0.72 in
during the performance of daily work, creating a
2015. In the past five years, SCC has reduced its rate
positive environment that encourages participation
of accidents by 41% and the severity of them by 70%,
and pride in the efforts to create a safe working
showing that our activities to identify and address risks
environment.
have significantly reduced the frequency and severity of
accidents in our mining operations.
• A total of 5 colonies, 6 workplaces and 4 schools were
certified as Healthy Environments. The certification
These results reflect the efforts in our culture of safety
issued by the Ministry of Health recognizes the actions
activities, the implementation of inspection plans and,
of the Company to make joint efforts to improve the
especially, the work and commitment of our employees.
health of its people.
ANNUAL REPORT 2015 90 |
GENERAL INFORMATION
OCCUPATIONAL HEALTH
Healthy environments are part of the organizational
culture and management system, as a responsibility of
the Company that establishes a culture of involvement,
participation and commitment to generate better health
conditions that lead to improving the quality of life of our
employees, their families and the communities in which
we operate.
During 2015, we reduced our rate of occupational
diseases by 75% as a result of the various programs
on education, prevention and control of risks, as well as
on treatment of diseases. These programs are offered
to our employees and, in some cases, to their families,
contractors, suppliers, institutions and the general
public.
We maintain a focus on
gender equality.
We have highly
competitive female
staff.
SCC values good performance of its
personnel.
90 | 91
ACCIDENT RATE (IR),
SCC, 2013 - 2015
2015
2014
2013
IR =
0.72
No. of disabling
accidents
No. of total - men hours
worked
SEVERITY RATE (GR),
SCC, 2013 - 2015
0.89
1.01
x 200,000
2015
2014
2013
GR =
0.24
0.21
0.38
No.of days lost
No. of total - men hours
worked
x 1,000
OCCUPATIONAL DISEASE
RATE (ODR),
SCC, 2013 - 2015
2015
2014
2013
0.14
0.57
0.78
ODR =
No. of cases of occupational
diseases
No. of total - men hours
worked
x 200,000
ANNUAL REPORT 2015 92 |
ACTIVIDADES DIRIGIDAS A:
PERSONAL DE ENTORNO LABORAL
FAMILIAS DE LOS TRABAJADORES
Y COMUNIDAD
1
Foro de células de seguridad inerno
1
Visitas guiadas “Conoce mi empresa”
2
Expo seguridad
3
Feria de la salud
4
Carrera de la salud
2
Convivios familiares y desfiles
3
Feria de la salud
4
Carrera de la salud
5
Cursos y conferencias de seguridad
5 Cursos de combate vs incendios
6
Premiación a trabajadores
o departamentos con CERO ACCIDENTES
6
Concursos familiares de promoción de valores
DIVISIÓN 92 | 93
INVESTMENT IN SAFETY AND HEALTH
During 2015, we invested over $104.06 million in occupational safety
and health, a 10% increase from the previous year, focusing efforts on
engineering works, purchase of personal protective equipment, training,
coaching, and industrial hygiene studies. In terms of occupational
health, we have invested in the development, promotion and protection
of health, as well as in primary prevention, treatment and rehabilitation.
INVESTMENT IN OCCUPATIONAL SAFETY
(in Millions)
Management costs
Training
Personal protection equipment
Industrial hygiene studies
Engineering works
Total
SCC
2.76
4.49
7.19
1.03
81.82
97.29
$
$
$
$
$
$
INVESTMENT IN OCCUPATIONAL HEALTH
(in Millions)
Development, Promotion and Protecition of Health
Detection and prevention
Treatment
Rehabilitation
Total
SCC
0.49
0.45
5.81
0.03
6.77
$
$
$
$
$
ANNUAL REPORT 2015
GENERAL INFORMATION
94 |
OPERATIONS IN PERU 2015
The safety and health results in 2015, for the open pit mining operations
at the Toquepala and Cuajone mines, metallurgical operations at the
Ilo Unit, which includes smelter and refinery plants, were as follows:
Frequency Index 2.2, Severity Index 122.3 and Accidentability rate 0.3;
these indicators are better, compared with 2014 rates, principally due
to Severity Index (677) and Accidentability rate (1.5). In 2015, no fatal
accident was registered.
In order to improve Safety rates, Southern Peru hired Safety Quality
Edge to implement “Based Safety Behavior” (SBC) in its operations
units, this project is ongoing and is expected the continue reducing of
these rates in the next years.
Investment in
occupational health.
More than $6.52
millions.
EMPLOYEES FOR THE YEAR ENDED DECEMBER 31TH
Mexican Operations
Employees
Workers
Total
Peruvian Operations
Employees
Workers
Total
Ecuador Office
Employees
Workers
Total
Argentina Office
Employees
Workers
Total
Chile Office
Employees
Workers
Total
Corporate Office
Total
Total Employees in SCC
Total Mexico
Total Peru
Total Ecuador
Total Argentina
Total Chile
Total Corporate Office
Total
2015
2,219
6,097
8,316
2,388
2,214
4,602
14
38
52
10
16
26
12
14
26
2
8,316
4,602
52
26
26
2
2014
2,153
5,952
8,105
2,308
2,216
4,524
14
38
52
10
16
26
12
14
26
2
8,105
4,524
52
26
26
2
2013
2,141
6,041
8,182
2,272
2,158
4,430
-
-
17
-
-
16
-
-
18
2
8,182
4,430
17
16
18
2
2012
1,979
5,996
7,475
2,101
2,465
4,566
-
-
18
-
-
14
-
-
12
1
7,475
4,566
18
14
12
1
13,024
12,735
12,665
12,086
12,145
94 | 95
2011
1,979
5,996
7,975
2,031
2,128
4,159
-
-
-
-
-
-
-
-
10
1
7,975
4,159
-
-
10
1
ANNUAL REPORT 2015 96 |
96 |
PRINCIPLES OF CORPORATE GOVERNANCE
Resolution from the Superintendencia de Mercado de Valores –SMV-
by its acronym in Spanish) Nº 00012-2014-SMV/01.
The information referred to that resolution will be submitted to the SMV
of the Republic of Peru, together with the Annual Report.
Economic relations with other companies due to loans that commit
more than 10% of the stockholder’s equity of the issuing entity.
To date, there are no loans with other companies that compromise
more than 10% of SCC’s property.
Administrative Judicial or Arbitration Processes Litigation: See Note
13 “Commitments and Contingencies” to our Consolidated Financial
Statements.
Changes of those responsible for the preparation and revision of the
financial Information.
At December 31, 2015, no changes have been done.
DIVISIÓN 96 |
96 | 97
Electrowining plant.
SCC recovered mineral low
grade of copper from its SX/EW
processes, which obtains copper
cathodes of 99.999% of copper.
INFORMATION RELATED TO THE STOCK ENTERED IN THE STOCK
MARKET PUBLIC
Common Stock
On November 29, 1995 the Company offered to exchange the recently
issued common shares for all and any labor shares of the Peruvian
Branch of the Company, at a ratio of one common share per four S-1
shares and one common share per five S-2 shares. The exchange
expired on December 29, 1995, with 80.8% of the total labor shares in
circulation exchange for 22,959,334 common shares. These common
shares are quoted in New York Stock Exchange and the Lima Stock
Exchange and are entitled to one vote per share.
Along with the exchange of labor shares the holders of common shares
of the Company exchanged their shares for Class A common shares,
with the right to five votes per share.
In connection with the Minera Mexico acquisition (April 1, 2005),
134,415,280 new common shares were issued and class A common
shares of the Company were converted to common shares, and
preferential votes were eliminated. On June 9, 2005, Cerro Trading
ANNUAL REPORT 2015 98 |
At December 31,
2015, there were of
record 775’942,270
shares of common
stock of the
Company.
Company, Inc., SPC Investors L.L.C., Phelps Dodge Overseas Capital
Corporation and Climax Molybdenum B.V., subsidiaries of two of SCC’s
founding shareholders and affiliates, sold their share in SCC.
On August 30, 2006 the Executive Committee of the Board of Directors
declared a two-for-one split of the Company’s outstanding common
stock. On October 2, 2006 common shareholders of record at the close
of business on September 15, 2006, received one additional share
of common stock for every share owned. The Company’s common
stock began trading at its post-split price on October 3, 2006. The
split increased the number of shares outstanding to 294,460,850 from
147,230,425.
On June 19, 2008 the Executive Committee of the Board of Directors
declared a three-for-one split of the Company’s outstanding common
stock. On July 10, 2008 common shareholders of record at the close of
business on June 30, 2008, received two additional shares of common
stock for every share owned. The split increased the number of shares
outstanding to 883,410,150 from 294,470,050.
All share and per share amounts were retroactively adjusted to reflect
the stock splits.
Since 2008 and 2015, the Company and AMC had bought shares
periodically.
At December 31, 2015, there were of record 775,942,270 shares of
common stock of the Company, par value $0.01 per share, outstanding.
CORPORATE BONDS
Between July 2005 and November 2012 the Company issued senior
unsecured notes six times totaling $4.2 billion as listed above. Interest
on the notes is paid semi-annually in arrears. The notes rank pari passu
DIVISIÓN 98 | 99
with each other and rank pari passu in right of payment with all of the
Company’s other existing and future unsecured and unsubordinated
indebtedness.
The indentures relating to the notes contain certain restrictive covenants,
including limitations on liens, limitations on sale and leaseback
transactions, rights of the holders of the notes upon the occurrence
of a change of control triggering event, limitations on subsidiary
indebtedness and limitations on consolidations, mergers, sales or
conveyances. Certain of these covenants cease to be applicable before
the notes mature if the Company obtains an investment grade rating.
The Company obtained investment grade rating in 2005.
In addition, the Company´s Mexican operations hold $51.1 million in
bonds referred above as “Yankee bonds”, contain a covenant requiring
Minera Mexico to maintain a ratio of EBITDA to interest expense of not
less than 2.5 to 1.0 as such terms are defined in the debt instrument.
At December 31, 2015, the Company was in compliance with this
covenant.
Please see Note 11 “Financing” for a discussion about the covenants
requirements related to our long-term debt, on Form 10-K 2015.
ANNUAL REPORT 2015 100 |
The new production of the
Buenavista mine will be
processed in the new copper-
molybdenum concentrator.
With an annual production
capacity of 188,000 tons of
copper and 2,600 tons of
molybdenum.
This project has a 99% progress with an
investment of $1.16 billion out of the
approved capital budget of $1.38 billion.
DIVISIÓN ANNUAL REPORT 2015
100 | 101
MEMBERS OF THE BOARD OF DIRECTORS AT
DECEMBER 31, 2015
GERMAN LARREA MOTA-VELASCO
Director.
Mr. Larrea has been Chairman of the Board of Directors since December
1999, Chief Executive Officer from December 1999 to October 2004,
and a member of our Board of Directors since November 1999. He has
been Chairman of the board of directors, President and Chief Executive
Officer of Grupo Mexico, S.A.B. de C.V. (“Grupo Mexico”) (holding)
since 1994. Mr. Larrea has been Chairman of the board of directors
and Chief Executive Officer of Grupo Ferroviario Mexicano, S.A. de C.V.
(railroad company) since 1997. Mr. Larrea was previously Executive
Vice Chairman of Grupo Mexico and has been member of the board
of directors since 1981. He is also Chairman of the board of directors
and Chief Executive Officer of Empresarios Industriales de Mexico, S.A.
de C.V. (“EIM”) (holding) and Fondo Inmobiliario (real estate company),
since 1992. He founded Grupo Impresa, a printing and publishing
company in 1978, remaining as the Chairman and Chief Executive
Officer until 1989 when the company was sold. He is a director of the
Consejo Mexicano de Negocios since 1999, was a director of Banco
Nacional de Mexico, S.A. (Citigroup) from 1992 to 2015 and was also
a director of Grupo Televisa, S.A.B. from 1999 to 2014.
OSCAR GONZALEZ ROCHA
Director.
Mr. Gonzalez Rocha has been our President since December 1999
and our President and Chief Executive Officer since October 21,
2004. He has been a director of the Company since November 1999.
Mr. Gonzalez Rocha has been the President and Chief Executive
Officer of Americas Mining Corporation (“AMC”) since November
1, 2014 and the Chief Executive Officer and a director of Asarco
LLC (integrated US copper producer), an affiliate of the Company,
MEMBERS OF THE BOARD
102 |
102 |
since August 2010. Previously, he was the Company’s
as Mexico’s Ambassador to Canada from July 1987 to
President and General Director and Chief Operating
February 1989. Mr. Carrillo Gamboa served from 2002
Officer from December 1999 to October 20, 2004. Mr.
through March 2010 on the board and on the audit
Gonzalez Rocha has been a director of Grupo Mexico
committee of Empresas ICA, S.A.B. de C.V. (NYSE—
since 2002. He was General Director of Mexicana
ICA), an engineering, procurement and construction
de Cobre, S.A. de C.V. from 1986 to 1999 and of
company. He has been a member of the valuation,
Buenavista del Cobre, S.A. de C.V. (formerly Mexicana
contract review, nominating and corporate governance,
de Cananea, S.A. de C.V.) from 1990 to 1999. He was
and audit committees of The Mexico Fund, Inc. since
an alternate director of Grupo Mexico from 1998 to
2002. Mr. Carrillo Gamboa has served on the board and
April 2002. Mr. Gonzalez Rocha is a civil engineer with
audit committee of Grupo Mexico since 2004 and on
a degree from the Autonomous National University of
the boards of Grupo Nacional Provincial S.A.B. (Mexican
Mexico (“UNAM”) in Mexico City, Mexico.
insurance company) since 2007, Grupo Posadas, S.A.B.
EMILIO CARRILLO GAMBOA
Director.
de C.V. (Mexican hotel operation company) since 2006,
Grupo Profuturo, S.A.B. de C.V. (Mexican insurance and
pension holding company) since 2009, and Kimberly-
Mr. Carrillo Gamboa has been a director of the Company
Clark de Mexico, S.A.B. de C.V. (consumer products)
since May 30, 2003 and is our fourth independent
since 2002. Mr. Carrillo Gamboa has a law degree from
director nominee. Mr. Carrillo Gamboa is a prominent
the UNAM in Mexico City, Mexico. He also attended a
lawyer in Mexico and has been the Senior Partner of
continuous legal education program at Georgetown
the Bufete Carrillo Gamboa, S.C., a law firm specializing
University Law Center in Washington D.C., and practiced
in corporate, financial, commercial, and public utility
at the World Bank.
issues, for the last five years. Mr. Carrillo Gamboa has
extensive business experience and currently serves on
ALFREDO CASAR PEREZ
the boards of many prestigious international and Mexican
Director.
corporations, as well as charitable organizations. Since
Mr. Casar Perez has been a director of the Company
March 9, 2005, he has been Chairman of the board of
since October 26, 2006. He has been a member of the
The Mexico Fund, Inc. (NYSE—MXF), a nondiversified
board of directors of Grupo Mexico since 1997. He is
closed-end management
investment company. Mr.
also a member of the board of directors of Ferrocarril
Carrillo Gamboa held various offices with Telefonos de
Mexicano, S.A. de C.V., an affiliated company of Grupo
Mexico, S.A. de C.V. (“TELMEX”) from 1960 to 1987, the
Mexico, since 1998 and its Chief Executive Officer since
most recent being that of President and Chief Executive
1999. From 1992 to 1999, Mr. Casar Perez served as
Officer from June 1975 to June 1987. He later served
General Director and member of the board of directors
ANNUAL REPORT 2015
102 | 103
102 |
of Compañia Perforadora Mexico, S.A. de C.V. and Mexico Compañia
Constructora, S.A. de C.V., two affiliated companies of Grupo Mexico.
Mr. Casar Perez served as Project Director of ISEFI, a subsidiary of
Banco Internacional, in 1991 and Executive Vice President of Grupo
Costamex in 1985. Mr. Casar Perez also worked for the Real Estate
Firm, Agricultural Ministry, and the College of Mexico. Mr. Casar Perez
holds a degree in Economics from the Autonomous Technological
Institute of Mexico, ITAM, and one in Industrial Engineering from
Anahuac University in Mexico City, Mexico. He also holds a Master’s
degree in Economics from the University of Chicago in Chicago,
Illinois.
LUIS CASTELAZO MORALES
Director.
Mr. Castelazo Morales has been a director of the Company since
September 20, 2010. Mr. Luis Castelazo Morales has been the General
Director of EIM since 2008. Mr. Castelazo Morales was previously
Chief Executive Officer of Desarrollo de Ingenieria, S.A. de C.V.
(DISA), a Mexican construction company, for more than ten years. Mr.
Castelazo Morales has also participated in different projects in Mexico
through joint ventures with Raytheon Engineers and Constructors
and also with the McCarthy Construction Group. Later he, along with
two colleagues, founded AGBC S.C., a firm dedicated to financial
consulting and advising for investments in the Mexican stock market,
where he worked for more than 15 years. Mr. Castelazo Morales holds
the recognition of the AMIB (Asociacion Mexicana de Intermediarios
Bursatiles) as a certified “Advisor in Investment Strategies” for the
Mexican stock market. Mr. Castelazo Morales holds a degree in Civil
Engineering from the Universidad Iberoamericana in Mexico City,
Mexico and a Master’s degree in Business Administration from the
University of Texas at Austin in Austin,Texas.
MEMBERS OF THE BOARD
104 |
ENRIQUE CASTILLO SANCHEZ MEJORADA
Director.
Mr. Castillo Sanchez Mejorada has been a director of the Company since
July 26, 2010 and is our fifth independent director nominee. From May
2013 to date, Mr. Castillo Sanchez Mejorada has been Senior Partner
of Ventura Capital Privado, S.A. de C.V. (Mexican financial company)
and since October 2013 to date, he has been Chairman of the board
of directors of Maxcom Telecomunicaciones, S.A.B. de C.V. (Mexican
Telecommunications Company). From April 2011 to May 2013, Mr.
Castillo Sanchez Mejorada was a senior advisor at Grupo Financiero
Banorte, S.A.B. de C.V. (“GFNorte”). From October 2000 to March
2011, Mr. Castillo Sanchez Mejorada was the Chairman of the board of
directors and Chief Executive Officer of Ixe Grupo Financiero, S.A.B. de
C.V., a Mexican financial holding company that merged into GFNorte
as of April 2011. In addition, from March 2007 to March 2009, Mr.
Castillo Sanchez Mejorada was the President of the Mexican Banking
Association (Asociacion de Bancos de Mexico). Currently, Mr. Castillo
Sanchez Mejorada serves as an independent director on the boards
of directors of (i) Grupo Herdez, S.A.B. de C.V., a Mexican holding
company for the manufacture, sale and distribution of food products;
(ii) Alfa, S.A.B. de C.V., a Mexico-based holding company that, through
its subsidiaries, is engaged in the petrochemical, food processing,
automotive and telecommunication sectors; (iii) Organizacion Cultiba,
S.A.B. de C.V. (formerly Grupo Embotelladoras Unidas, S.A.B. de C.V.),
a Mexico-based holding company primarily engaged in the beverage
industry; and (iv) Medica Sur, S.A.B. de C.V., a Mexico-based company
engaged in the hospital business. From April 2012 until April 2014, Mr.
Castillo Sanchez Mejorada served as an independent director on the
board and as a member of the audit committee of Grupo
Aeroportuario del Pacifico, S.A.B. de C.V., a Mexico-based and NYSE-
listed company that operates, maintains and develops 12 airports in the
Pacific and central regions of Mexico. Mr. Castillo Sanchez Mejorada
was a member of the board of directors of Grupo Casa Saba, S.A.B. de
104 | 105
C.V., a Mexican wholesale distributor of pharmaceutical,
since April 2002. He was also Vice President of Grupo
health, beauty and other consumer products and operator
Condumex, S.A. de C.V. (telecommunications, electronic
of a retail pharmacy chain, from April 2010 until 2013.
and automotive parts producer) for eight years. Mr. Garcia
Mr. Castillo Sanchez Mejorada has been a member of
de Quevedo was the Chairman of the Mining Chamber
the audit committee of Alfa, S.A.B. de C.V. since 2010.
of Mexico from November 2006 to August 2009. He
Mr. Castillo Sanchez Mejorada holds a Bachelor’s degree
is a chemical engineer with a degree from the UNAM
in Business Administration from the Anahuac University,
in Mexico City, Mexico. He also attended a continuous
in Mexico City, Mexico.
business administration and finance program at the
Technical Institute of Monterrey in Monterrey, Mexico.
XAVIER GARCIA DE QUEVEDO TOPETE
Director.
DANIEL MUÑIZ QUINTANILLA
Mr. Garcia de Quevedo has been a director of the
Director.
Company since November 1999. He was our Chief
Mr. Muñiz has been a director of the Company since May
Operating Officer from April 12, 2005 until April 23,
28, 2008. Mr. Muñiz has been the Chief Financial Officer
2015. Since November 1, 2014 Mr. Garcia de Quevedo
of Grupo Mexico since April 2007. Prior to joining Grupo
Topete serves as the President of the infrastructure
Mexico, Mr. Muñiz was a practicing corporate finance
division of Grupo Mexico, composed of the energy,
lawyer from 1996 to 2006. During this time he worked at
gas, oil and construction subsidiaries of Grupo Mexico.
Cortes, Muñiz y Nuñez Sarrapy; Mijares, Angoitia, Cortes
He was the President and Chief Executive Officer of
y Fuentes; and Baker & McKenzie (London and Mexico
Southern Copper Minera Mexico from September 2001
City offices). He holds a Master’s degree in Financial Law
until November 1, 2014. He was the President and
from Georgetown University Law Center in Washington
Chief Executive Officer of Americas Mining Corporation
D.C., and a Master’s degree in Business Administration
from September 7, 2007 to October 31, 2014. From
from Instituto de Empresa in Madrid, Spain.
December 2009 to June 2010, he was Chairman and
Chief Executive Officer of Asarco LLC, previously he
LUIS MIGUEL PALOMINO BONILLA
was President of Asarco LLC from November 1999 to
Director.
September 2001. Mr. Garcia de Quevedo began his
Dr. Palomino has been a director of the Company since
professional career in 1969 with Grupo Mexico. He was
March 19, 2004 and is a special independent director
President of Grupo Ferroviario Mexicano, S.A. de C.V.
nominee. Dr. Palomino has been Chairman of the board
and of Ferrocarril Mexicano, S.A. de C.V. from December
of directors of Aventura Plaza, S.A. (commercial real
1997 to December 1999, and Executive Vice-President
estate developer and operator) since January 2008,
of Exploration and Development of Grupo Mexico from
Manager of the Peruvian Economic Institute (economic
1994 to 1997. He has been a director of Grupo Mexico
think tank) since April 2009, Partner of Profit Consultoria
ANNUAL REPORT 2015 MEMBERS OF THE BOARD
106 |
e Inversiones (a financial consulting firm) since July
February 2007. Mr. Perezalonso was the Chief Executive
2007, director of the Master in Finance Program at the
Officer of Aeromexico (Aerovias de Mexico, S.A. de C.V.)
University of the Pacific in Lima, Peru since July 2009,
(airline company) from 2004 until December 2005. From
and a director and chairman of the audit committee of
1998 until April 2001, he was Executive Vice President
the Bolsa de Valores de Lima (Lima Stock Exchange)
of Administration and Finance of Grupo Televisa, S.A.B.
since March 2013. He was a member of the board of
(media company). From 1980 until February 1998, Mr.
directors of Access SEAF SAFI from December 2007
Perezalonso held various positions with Grupo Cifra, S.A.
to April 2010. Dr. Palomino was previously Principal
de C.V. (department stores), the most recent position
and Senior Consultant of Proconsulta International
being that of General Director of Administration and
(financial consulting) from September 2003 to June
Finance. Now he is a member of the advisory council
2007. Previously he was First Vice President and Chief
of Banco Nacional de Mexico, S.A. de C.V. (banking),
Economist, Latin America, for Merrill Lynch, Pierce, Fenner
the board of directors and the investment committee of
& Smith, New York (investment banking) from 2000 to
Afore Banamex (banking), the board and the investment
2002. He was Chief Executive Officer, Senior Country
committee of Siefore Banamex No. 1 (banking), and is a
and Equity Analyst of Merrill Lynch, Peru (investment
member of the boards of directors of Gigante, S.A. de C.V.
banking) from 1995 to 2000. Dr. Palomino has held
(retail), Masnegocio Co. S. de R.L. de C.V. (information
various positions with banks and financial institutions as
technology), Intellego (technology), Telefonica Moviles
an economist, financial advisor and analyst. He has a
Mexico, S.A. de C.V. (wireless communication), Cruz
PhD in finance from the Wharton School of the University
Roja Mexicana (emergency and medical services),
of Pennsylvania
in Philadelphia, Pennsylvania and
Construction Company Marhnos (housing construction),
graduated from the Economics Program of the University
and Fomento de Investigacion y Cultura Superior, A.C.
of the Pacific in Lima, Peru.
(Foundation of the Iberoamerican University) . Mr.
Perezalonso was a director of Cablevision, S.A. de
GILBERTO PEREZALONSO CIFUENTES
C.V., Grupo Televisa, S.A.B. and a member of the audit
Director.
committee of Grupo Televisa, S.A.B. from March 1998
Mr. Perezalonso has been a director of the Company
to September 2009. Mr. Perezalonso has a law degree
since June 2002 and is a special independent director
from the Iberoamerican University in Mexico City, Mexico
nominee. Mr. Perezalonso was Chairman of the board
and a Master’s degree in Business Administration from
of directors of Volaris Compañia de Aviacion, S.A.P.I. de
the Business Administration Graduate School for Central
C.V. (airline) from March 2, 2011 to November 2014.
America (INCAE) in Nicaragua. Mr. Perezalonso has
He was Chief Executive Officer of Corporacion Geo, S.A.
also attended a Corporate Finance program at Harvard
de C.V. (housing construction) from February 2006 to
University in Cambridge, Massachusetts.
ANNUAL REPORT 2015
106 |
107
MEMBERS OF THE BOARD OF DIRECTORS
AT DECEMBER 31, 2015
German Larrea Mota-Velasco
Oscar Gonzalez Rocha
Emilio Carrillo Gamboa
Alfredo Casar Perez
Luis Castelazo Morales
Enrique Castillo Sanchez Mejorada
Xavier Garcia de Quevedo Topete
Daniel Muñiz Quintanilla
Luis Miguel Palomino Bonilla
Gilberto Perezalonso Cifuentes
Carlos Ruiz Sacristan
CARLOS RUIZ SACRISTAN
Director.
Mr. Ruiz Sacristan has been a director of the Company
since February 12, 2004 and is a special independent
director nominee. Since November 2001, he has
been the owner and Managing Partner of Proyectos
Estrategicos Integrales, a Mexican investment banking
firm specialized in agricultural, transport, tourism, and
housing projects. Mr. Ruiz Sacristan has held various
distinguished positions in the Mexican government, the
most recent being that of Secretary of Communications
and Transportation of Mexico from 1995 to 2000. While
holding that position, he was also Chairman of the
board of directors of the Mexican-owned companies
in the sector, and member of the board of directors of
development banks. He was also the Chairman of the
board of directors of Asarco LLC. Mr. Ruiz Sacristan was
a member of the board of directors from 2007 to 2012
and of the audit, and environmental and technology
committees of Sempra Energy (energy services). In
2012, Mr. Ruiz Sacristan was appointed Chairman and
Chief Executive Officer of IEnova, the Mexican operating
subsidiary of Sempra Energy. He is a member of the
boards of directors of Constructora y Perforadora Latina,
S.A. de C.V. (Mexican geothermal exploration and drilling
company), of Banco Ve Por Mas, S.A. (Mexican bank),
of OHL Concesiones Mexico (a construction and civil
engineering company), and of AMAIT (an international
airport in Mexico). Mr. Ruiz Sacristan holds a Bachelor’s
degree in Business Administration from the Anahuac
University in Mexico City, Mexico, and a Master’s degree
in Business Administration from Northwestern University
in Chicago, Illinois.
108 |
108 |
EXECUTIVE OFFICERS
EXECUTIVE OFFICERS
GERMAN LARREA MOTA-VELASCO
Chairman of the Board of Directors
OSCAR GONZALEZ ROCHA
President and Chief Executive Officer
RAUL JACOB RUISANCHEZ
Vice-President, Finance and Chief Financial Officer
JUAN MANUEL RODRIGUEZ ARRIAGA
Vice-President Commercial
JAVIER GOMEZ AGUILAR
Vice-President, Legal and legal Manager
HANS A. FLURY
Secretary and Legal Advisor
AGUSTIN AVILA MARTINEZ
Comptroller
VIDAL MUHECH DIP
Vice-President, Projects
EDGARD CORRALES AGUILAR
Vice-President, Explorations
108 |
108 | 109
109
ANNUAL REPORT 2015
NEXT OF KIN
A company of which more than 50% of the voting power is held by a single
entity, a “controlled company”, need not comply with the requirements
of the New York Stock Exchange (“NYSE”) corporate governance
rules requiring a majority of independent directors and independent
compensation and nomination/corporate governance committees.
SCC is a controlled company as defined by the rules of the NYSE.
Grupo Mexico owns indirectly 88.6 % of the stock of the Company, as
of December 31, 2015. The Company has taken advantage of the
exceptions to comply with the corporate governance rules of the NYSE.
The Board of Directors of the Company determined that Messrs. Luis
Miguel Palomino Bonilla, Gilberto Perezalonso Cifuentes, and Carlos Ruiz
Sacristan, the three members of the Company’s Audit Committee, are
independent of management and financially literate in accordance with the
requirements of the NYSE and the Securities and Exchange Commission
(“SEC”), as such requirements are interpreted by the Company’s Board
of Directors in its business judgment. Additionally, Messrs. Emilio Carrillo
Gamboa and Enrique Castillo Sanchez Mejorada are our fourth and fifth
independent directors. At its meeting on January 28, 2016, the Board of
Directors determined that Messrs. Luis Miguel Palomino Bonilla, Gilberto
Perezalonso Cifuentes, Carlos Ruiz Sacristan, Emilio Carrillo Gamboa,
and Enrique Castillo Sanchez Mejorada are independent of management
in accordance with the requirements of the NYSE as such requirements
are interpreted by our Board of Directors in its business judgment.
To the best of the Company’s knowledge, no relationship of affinity and/
or consanguinity exists among the members of the Board, and between
them and the Executive Officers of Southern Copper Corporation.
ANNUAL REPORT 2015 SPECIAL COMMITTEES
110 |
SPECIAL COMMITTEES OF THE BOARD
5. Corporate Governance Committee. It is comprised
of four Board members and has as its primary
SCC’s Board of Directors has organized the following
functions to consider and make recommendations to
Special Committees:
the Board concerning the appropriate function and
needs of the Board, to develop and recommend to the
1. Executive Committee. It is comprised of five members
Board corporate governance principles, to oversee
who substitute for the Board when sessions or
evaluation of the Board and management, and to
decisions are required concerning urgent matters,
oversee and review compliance with the disclosure
or matters for which the Board would have expressly
and reporting standards of the Company that require
delegated its mandate.
full,
fair, accurate,
timely, and understandable
disclosure of material information regarding the
2. Audit Committee. It is comprised of three independent
Company in reports and documents that it files with
Board members who are knowledgeable in accounting
the SEC, the NYSE and equivalent authorities in the
and financial matters. Its main purpose is to: (a) assist
countries in which the Company operates, as well
the Board in monitoring (i) the quality and integrity of the
as in other public communications that it regularly
Company’s financial statements; (ii) the qualifications
makes.
and independence of the independent auditors; (iii)
the performance of the internal audit function and
6. Administrative Committee. It is designated by
of the independent auditors; and (iv) the Company’s
the Named Fiduciary appointed by the Board for
compliance with legal and regulatory requirements;
the benefit plans as required by the Employee
and (b) prepare the report required by SEC rules.
Retirement Income Security Act – ERISA of the
United States. ERISA is the law that covers
3. Compensation Committee. It is comprised of four Board
employee retirement and other benefit plans. Mr.
members and its principal objective is to evaluate and
Daniel Muñiz Quintanilla is the Board-appointed
establish the remunerations of principal officers and
Named Fiduciary for the Company’s benefits plans
key employees of the Company and its subsidiaries.
subject to US regulations, including ERISA. This
Officer appoints an Administrative Committee,
4. Special Nominating Committee. It is comprised of two
which is comprised of three management members
independents Board members and one nominated by
and its purpose is to administer and manage said
the Board and it has the exclusive authority to propose
plans and to oversee the performance of the trust
and evaluate individuals who are proposed as special
agents and other fiduciaries charged with investing
independents directors.
the plans’ funds.
110 |
111
ADMINISTRATION AND BOARD INCOME
Total remunerations of Board and Administration members, in relation
to the Company´s gross income is 0.07%.
ANNUAL MEETING
The annual stockholders meeting of Southern Copper Corporation
will be held at Edificio Parque Reforma, Campos Eliseos No. 400, 9th
Floor, Col. Lomas de Chapultepec, Mexico City, C.P. 11000, Mexico, on
Thursday, April 28, 2016 at 9:00 A.M., Mexico City time.
CORPORATE OFFICES:
UNITED STATES
1440 E. Missouri Avenue,
Suite 160,
Phoenix, AZ 85014
U.S.A.
Phone: +(602) 264-1375
MEXICO
Edificio Parque Reforma, Campos
Eliseos No. 400
Col. Lomas de Chapultepec Mexico D.F.
Phone: +(52-55) 1103-5000
PERU
Av. Caminos del Inca No. 171
Chacarilla del Estanque
Santiago de Surco Lima 33, Peru
ANNUAL REPORT 2015
CORPORATE INFORMATION
112 |
Web Page: www.southerncoppercorp.com
Email address: southerncopper@southernperu.com.pe
FORM 10-K1
Attached Form 10-K contains Management’s Discussion and Analysis of
Financial Condition and Results of Operations, Consolidated Combined
Financial Statements and the accompanying notes are an integral part
of these Annual Report.
1 Form 10-K Phone. +(511) 512-0440, extension 3442 for Spanish
TRANSFER AGENT, REGISTRAR AND STOCKHOLDER SERVICES
Computershare
480 Washington Boulevard
Jersey City, NJ 07310-1900
Phone: +1(866)230-0172
DIVIDEND REINVESTMENT PROGRAM
SCC stockholders can have their dividends automatically reinvested in
SCC common shares. SCC pays all administrative and brokerage fees.
This plan is administered by The Bank of New York Mellon Corporation.
For more information, contact The Bank of New York Mellon Corporation
at phone +1(866) 230-0172.
STOCK EXCHANGE LISTING
The principal markets for SCC’s Common Stock are the New York Stock
Exchange and the Lima Stock Exchange. Effective February 17, 2010,
SCC’s Common Stock changed its symbol from PCU to SCCO on both
the NYSE and the Lima Stock Exchange.
112 | 113
OTHERS
The Branch in Peru has issued, in accordance with Peruvian law,
‘investment shares’ (formerly named labor shares) that are quoted in
the Lima Stock Exchange under the symbol SPCCPI1 and SPCCPI2.
Transfer Agent, registrar and stockholders services are provided by
Banco de Credito of Peru at Avenue Centenario 156, La Molina, Lima
12, Peru.
Phone +(511) 313-2478, Fax +(511) 313-2556
OTHER CORPORATE INFORMATION
For other information on the corporation or to obtain additional copies
of the annual report, Form 10-K 2015 contact to Investor Relations
Department at our corporate offices:
ANNUAL REPORT 2015
MEMBERS OF THE BOARD OF DIRECTORS
MEMBERS OF THE BOARD OF DIRECTORS
German Larrea Mota-Velasco
Oscar Gonzalez Rocha
Emilio Carrillo Gamboa
Alfredo Casar Perez
Xavier Garcia de Quevedo Topete
Daniel Muñiz Quintanilla
Luis Miguel Palomino Bonilla
Gilberto Perezalonso Cifuentes
Carlos Ruiz Sacristan
Luis Castelazo Morales
Enrique Castillo Sanchez Mejorada
AUDIT COMMITTEE
Emilio Carrillo Gamboa, Chairman
Luis Miguel Palomino Bonilla, and
Gilberto Perezalonso Cifuentes
Enrique Castillo Sanchez Mejorada
SOUTHERN COPPER CORPORATION
CORPORATE OFFICES
ESTADOS UNIDOS
1440 East Missouri Avenue,
Suite 160 Phoenix, Az. 85014, USA
Phone: (602)264-1375.
MEXICO
Campos Eliseos No. 400, 11 floor,
Col. Lomas de Chapultepec Mexico D.F.
Phone +(52-55) 1103-5000.
PERU
Avenue Caminos del Inca 171 (B-2),
Chacarilla del Estanque, Santiago de Surco – Lima 33 - Peru.
Phone. +(511) 512-0440, Ext. 3442.
Symbol: SCCO
E-mail
southerncopper@southernperu.com.pe
www.southerncoppercorp.com