A N N U A L R E P O R T
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
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 2017. SCC takes responsibility for its contents according to applicable requirements.”
ANDRES FERRERO G.
Assistant Secretary
RAUL JACOB RUISANCHEZ
Vice-President Finance and
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.
X
E
D
N
I
02
LETTER TO SHAREHOLDERS
06
PRODUCTION STATISTICS
09
COPPER RESERVES
13
SELECTED AND FINANCIAL DATA
15
CAPITAL INVESTMENT PROGRAM AND EXPLORATION
(EXPANSION & MODERNIZATION)
23
DEVELOPMENT - COMMUNITY OUTREACH
37
RESULTS OF OPERATIONS
for the years ended December 31, 2017, 2016 and
2015
43
COMMITMENT - ENVIRONMENTAL AFFAIRS
57
GENERAL INFORMATION
DESCRIPTION OF OPERATIONS AND DEVELOPMENT
REGARDING THE ISSUING ENTITY
91
MEMBERS OF THE BOARD OF DIRECTORS
LETTER TO SHAREHOLDERS
During 2017, Southern Copper Corporation continued seeing
the benefit of its expansion and cost reduction programs which,
despite the 18% increase in diesel prices during 2017, yielded a
cash cost reduction from $0.95 to $0.92 per pound, the lowest
in the industry. SCC also continued with its capital program with
investments in excess of $1.0 billion. SCC believes that with
these actions is in a great position to take advantage of the
favorable price environment.
In 2018, SCC will complete the Peruvian Toquepala expansion
project adding 100,000 tons to our annual copper production,
allowing us to reach one million tons of annual copper production
capacity with an even lower cash cost per pound of copper.
We believe, Southern Copper is uniquely positioned to continue
delivering enhanced performance, sustainable growth and
superior value. Our best-in-class low cost operations, coupled
with a large, high-quality reserve base in only investment
grade jurisdictions, continues to offer highly attractive growth
opportunities. In addition, our robust capital structure provides
the financial and strategic flexibility required for its execution.
In 2018, we plan to invest $1,748.2 million in capital projects.
In Mexico, the project is located within Buenavista facility
and contemplates the development of a new concentrator to
produce approximately 80,000 tons of zinc and 20,000 tons
of additional copper per year that will allow us to double our
current zinc production capacity. Pilares—Sonora: This project
will be developed as an open-pit mine operation with a capacity
of 35,000 tons of copper in concentrates per year. The ore will be
transported by truck from the pit to the primary crushers of the La
Caridad copper concentrator.
In 2017, we started our new strategic plan to grow copper
production capacity to exceed the 1 million ton milestone by mid-
2018, with the operation of the Toquepala expansion project, and
by 2023 we expect to reach 1.5 million copper tons. We are
convinced that we can do it.
Landscape of
Buenavista del Cobre
mine, Sonora, Mexico.
Our copper reserves exceed 70 million tons of copper content,
giving us a 63-year mine life expectancy at the current production
rate. We believe that SCC is the best company in its class in
generating cash flow.
In Peru, we currently have a portfolio of projects with a total
capital budget of $2,900 million, out of which $1,620 million
have already been invested. This $1,255.0 million project
includes a new state-of-the-art concentrator that will increase
Toquepala’s annual copper production by 100,000 tons to reach
245,000 tons in 2019, a 69% production increase.
The project consisted of replacing rail haulage at the Cuajone mine
by an in-pit primary crusher with a 7 km overland conveyor belt
Ore loading, Toquepala mine,
Tacna, Peru.
system to move ore to the concentrator. Operating savings
are estimated at $23 million annually. As of December 31,
2017 the project is already completed and in operation.
Total investment was $226 million as budgeted.
We believe that Southern Copper has solid foundations
that guarantee its business success, as well as a
proper return that allows us to finance - simultaneously
- both the development of productive projects and
important social programs that we execute in each
of the countries where we are present, benefiting
neighboring towns to our operational areas.
On behalf of Southern Copper Corporation’s Board,
we express our thanks to all our personnel for their
effort, hard work and dedication, to our clients for
their continued trust and loyalty, and to you, our
shareholders, for your permanent support.
.
GERMAN LARREA MOTA VELASCO
OSCAR GONZALEZ ROCHA
CHAIRMAN OF THE BOARD
PRESIDENT AND CHIEF EXECUTIVE OFFICER
5
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
PRODUCTION STATISTICS
Southern Copper Corporation and Subsidiaries
Five-year Production Statistics
C O P P E R P R O D U C T I O N M I N E S
( T O N S )
Mined Material
Copper in concentrates
Copper SX/EW
Total Copper
Molybdenum in concentrates
Zinc in concentrates
Silver in concentrates
(thousand)
(thousand ounces)
S M E LT E R/ R E F I N E R I E S P R O D U C T I O N
2017
2016
2015
2014
2 01 3
743,163
711,720
165,259
876,979
21,328
68,665
15,926
742,935
715,360
184,595
899,955
21,736
73,984
16,172
764,532
569,072
173,921
742,993
23,347
61,905
13,288
758,965
532,291
144,308
676,599
23,120
66,614
12,992
641,456
498,361
118,658
617,019
19,897
99,372
13,513
Copper
Zinc
Silver
617,853
591,339
104,402
106,093
(thousand ounces)
13,688
15,196
597,945
100,576
13,638
561,939
545,082
92,133
13,348
97,692
15,572
T O Q U E PA L A
Mined Material
Copper in concentrates
Molybdenum in concentrates
C U A J O N E
Mined Material
Copper in concentrates
Molybdenum in concentrates
(thousand)
(thousand)
S M E LT E R/ R E F I N E R I E S I N P E R U
SX/EW
Smelt concentrates
Blister produced
Anode produced
Cathode produced
M E X I C A N A D E C O B R E - C A R I D A D
203,778
122,949
4,184
209,064
116,525
6,324
193,013
119,427
7,924
211,202
169,808
114,828
110,691
6,100
4,662
149,265
158,105
3,746
175,009
171,448
3,926
191,651
178,187
4,444
182,812
173,277
178,337
168,582
4,001
3,133
25,093
24,880
24,167
25,675
28,400
1,153,486 1,070,588
1,143,682
1,022,536
1,072,826
1,793
345,847
291,373
929
322,567
270,183
2,800
338,893
280,587
-
1,670
303,939
322,637
257,926
271,035
Mined Material
(thousand)
98,534
98,435
94,283
91,454
88,595
6
Copper in concentrates
Molybdenum in concentrates
106,271
104,949
103,861
101,062
96,863
9,934
9,911
10,040
10,800
11,742
B U E N A V I S TA
Mined material
Copper in concentrates
S M E LT E R/ R E F I N E R I E S I N M E X I C O
SX/EW
Smelt concentrates
Anode produced
Cathode produced
Rod produced
2017
2016
2015
2014
20 13
(thousand)
288,716
135,690
257,395
140,661
282,954
142,025
271,026
206,710
132,853
115,813
140,166
159,715
997,657
1,004,829
270,213
228,062
133,100
267,843
224,158
144,516
149,754
933,403
256,252
213,360
138,180
118,633
90,258
926,427
722,597
258,000
220,775
204,302
188,005
129,078
126,800
U N D E R G R O U N D M I N E S
Contents in concentrates
(tons)
Zinc
Lead
Copper in concentrates
Silver
Gold
68,665
20,246
5,486
4,760
5,428
73,984
24,385
6,428
5,622
6,420
61,905
20,693
5,593
4,995
4,697
66,614
22,286
5,211
4,945
4,857
99,372
23,918
6,412
6,170
5,493
(thousand ounces)
(thousand ounces)
7
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
COPPER RESERVES
i
,
c
m
o
n
o
c
e
s
a
l
l
e
w
s
a
,
y
g
r
u
l
l
a
t
e
m
d
n
a
,
l
a
t
n
e
m
n
o
r
i
v
n
e
,
l
a
g
e
l
,
g
n
i
t
e
k
r
a
m
r
e
h
t
o
d
n
a
l
i
a
c
o
s
,
l
a
t
n
e
m
n
r
e
v
o
g
.
s
n
o
i
t
a
r
e
d
i
s
n
o
c
y
r
a
s
s
e
c
e
n
i
g
n
n
m
i
,
e
c
r
u
o
s
e
r
e
h
t
f
o
s
t
n
e
m
s
s
e
s
s
a
e
d
u
c
n
l
i
s
e
t
a
m
i
t
s
e
s
e
v
r
e
s
e
r
e
r
o
e
h
T
COPPER RESERVES
We believe we hold the world’s largest copper reserve position. At
December 31, 2017, our copper ore reserves, calculated at a copper
price of $2.90 per pound, totaled 70.6 million tons of contained
copper (In 2017, the average LME and COMEX per pound copper
prices were $2.80), our internal ore reserve estimation value is as
follows.
2017 EBITDA was
$3,292.4 million, 48.8%
more than 2016 and
reached a range of 49.5%
C O P P E R C O N TA I N E D I N O R E R E S E R V E S
Mexican open-pit
Peruvian operations
IMMSA
Development projects
Total
T H O U S A N D T O N S
31,286
24,421
233
14,685
70,625
For further
information
about our ore
reserves please
refer to "Ore
Reserves" at
page 56 of our
10-K 2017 Form.
10
Tailings treatment
plant, Toquepala,
Tacna, Peru.
Next page
Confinement of
waste, San Luis
Potosi, Mexico.
12
S OU THERN COPPER CORPORATION AN D SUBSI D IARI ES
Five-Year Selected Financial and Statistical Data
For the years ended December 31
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS,
EMPLOYEE DATA AND STOCK AND FINANCIAL RATIOS)
C O N S O L I D AT E D S TAT E M E N T O F E A R N I N G S
2017
2016
2015
2014
20 13
Net sales
Operating costs and expenses
Operating income
Net income attributable to
Non-controlling interest
$ 6,654.5
$ 5,379.8
$ 5,045.9
$ 5,787.7
$ 5,952.9
$ 4,035.6
2,618.9
3,815.6
1,564.2
3,631.5
3,555.0
1,414.4
2,232.7
3,420.8
2,532.1
3.9
2.3
4.7
4.9
5.7
N E T E A R N I N G S AT T R I B U TA B L E T O S C C
$ 728.5
$ 776.5
$ 736.4
$ 1,333.0
$1,618.5
Per share amount
Earnings basic and diluted
Dividends paid
C O N S O L I D AT E D B A L A N C E S H E E T
$ 0.94
$ 1.00
$ 0.93
$ 1.61
$ 1.92
$ 0.59
$ 0.18
$ 0.34
$ 0.46
$ 0.68
Cash and cash equivalents
$ 1,004.8
$ 546.0
$ 274.5
$ 364.0
$ 1,672.7
Total assets
Total debt
Total equity
$ 13,780.1
13,234.3
12,593.2
11,393.9
10,970.0
5,957.1
5,954.2
5,951.5
4,180.9
4,178.9
$ 6,149.4
$ 5,870.9
$ 5,299.2
$ 5,836.6
$ 5,561.8
C O N S O L I D AT E D S TAT E M E N T O F C A S H F L O W S
Cash provided by operating activities
1,976.6
$ 923.1
$ 879.8
$ 1,355.9
$ 1,859.1
Dividends paid
Capital investments
456.1
139.3
271.2
381.0
573.8
1,023.5
1,118.5
1,149.6
1,529.8
1,703.3
Depreciation, amortization and depletion
671.1
$ 647.1
$ 510.7
$ 445.0
$ 396.0
C A P I TA L S T O C K
Common shares outstanding – basic and diluted
773,028
773.0
775.9
812.6
835.3
NYSE price – high
NYSE price – low
Book value per share
P/E ratio
F I N A N C I A L R AT I O S
$ 47.63
$ 34.98
$ 33.14
$ 33.54
$ 41.96
$ 32.38
$ 22.29
$ 24.40
$ 26.08
$ 24.78
7.90
50.35
7.54
31.82
6.78
28.19
7.14
17.52
6.62
14.95
Current assets to current liabilities
Net debt as % of Net capitalization (1)
Employees (at year end)
2.71
44.4%
13,135
2.57
47.7%
13,414
2.70
48.9%
13,024
2.07
37.3%
12,735
4.36
29.2%
12,665
(1) Represents net debt divided by net debt plus equity. Net debt is defined as total debt minus cash, cash equivalents and short-term investments balance.
13
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
CAPITAL INVESTMENT PROGRAM AND
EXPLORATION
(EXPANSION & MODERNIZATION)
m
a
r
g
o
r
p
t
n
e
m
t
s
e
v
n
i
l
a
t
i
p
a
c
a
d
e
v
o
r
p
p
a
s
r
o
t
c
e
r
i
D
f
o
d
r
a
o
B
e
h
t
,
8
1
0
2
r
o
F
.
n
o
i
l
l
i
m
2
.
8
4
7
,
1
$
f
o
16
CAPITAL EXPENDITURES AND
EXPLORATION (EXPA NS ION & MODERNIZA TION)
We made capital investments were $1,023.5 million for 2017,
$1,118.5 million in 2016 and $1,250.0 million in 2015 (including the
El Pilar acquisition). Capital investments in 2017 were 8.5% lower than
in 2016, and represented 140% of net income. Our growth program
to develop the full production potential of our Company is underway. In
addition, the Buenavista expansion program was completed on time
and under budget.
For 2018, the Board of Directors approved a capital investment program
of $1,748.2 million. We are currently developing a new organic growth
plan to increase our copper volume production to 1.5 million tons by
2025 with the development of new projects.
In addition to our ongoing capital maintenance and replacement
spending, our principal capital programs include the following:
PROJECTS IN MEXICO
Buenavista Zinc, Sonora. This project is located within the
Buenavista facility and contemplates the development of a new
concentrator to produce approximately 80,000 tons of zinc and
20,000 tons of additional copper per year that will allow us to double
our current zinc production capacity. We have concluded the basic
engineering and we are working on the purchasing process for the
main project components. We estimate an investment of $413 million
for this project and expect to initiate operations in 2020.
This $1.2 billion project
includes a new state-of-
the-art concentrator which
will increase Toquepala’s
annual copper production
by 100,000 tons, a 69%
production increase.
Construction of new tailing
thickeners, Toquepala, Tacna,
Peru.
Previous page
Pilares, Sonora. This project, located six kilometers from La Caridad, will
be developed as an open-pit mine operation. The ore will be transported
by truck from the pit to the primary crushers of the La Caridad copper
concentrator, significantly improving the over-all mineral ore grade
17
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
(from 0.34% at La Caridad to 0.78% expected from Pilares). Currently,
we continue with the mine plan preparation, including the final outline
design for the road through which the ore will be transported to the
La Caridad mill. An investment of $159 million is estimated to produce
35,000 tons of copper in concentrates per year. We expect this project
to start operations in 2019.
PROJECTS IN PERU
We currently have a portfolio of projects in Peru, with a total capital
budget of $2,900 million, out of which $1,620 million have already
been invested.
18
Toquepala Expansion Project, Tacna. This $1.2 billion project includes
a new state-of-the-art concentrator which will increase Toquepala’s
annual copper production by 100,000 tons to reach 245,000 tons
in 2019, a 69% production increase. Through December 31, 2017,
Advances in Toquepala
Expansion Project, Tacna,
Peru.
7
1
0
2
N
I
N
O
I
L
L
I
IN VE STED I N
MILLION
5
.
3
2
0
,
M
1
$
we have invested $892.9 million in this expansion. The
project has reached 87% progress and is expected to
initiate production in June 2018.
The project to improve the crushing process at Toquepala
with the installation of a High Pressure Grinding Roll
(HPGR) system, has as its main objective, to ensure that
our existing concentrator will operate at its maximum
annual production capacity of 117,000 tons of copper
while reducing operating costs through ore crushing
effi ciencies, even with an increase of the ore material
hardness index. The budget for this project is $50 million
and as of December 31, 2017, we have invested $38.9
million in this project. We expect that it will be completed
by the fi rst quarter of 2018.
Cuajone Projects – Moquegua: The Mineral Crushing
and Hauling Project consisted of replacing rail haulage
at the Cuajone mine by an in-pit primary crusher with a
7 km overland conveyor belt system to move ore to the
concentrator. Operating savings are estimated at $23
million annually. As of December 31, 2017, the project is
already completed and in operation. Total investment was
$226 million, as budgeted.
The Cuajone tailing thickeners project at the concentrator
will replace two of the three existing thickeners with a
new hi-rate thickener. The purpose is to streamline the
concentrator fl otation process and improve water recovery
effi ciency, increasing the tailings solids content from 54%
19
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
to 61%, thereby reducing fresh water consumption and replacing it
with recovered water. Equipment assembly is completed and we are
in the commissioning process. As of December 31, 2017, we have
invested $27.6 million in this project out of the approved capital
budget of $30 million. We expect the project to be completed by the
end of the first quarter of 2018.
Tailings disposal at Quebrada Honda – Moquegua: 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 finished the second stage with the installation
of a new cyclone battery station that allows us to place more slurry
at the dams. We are in a bidding process for a new stage which will
improve the operational processes. The project has a total budgeted
cost of $116.0 million. We have invested $85.7 million through
December 31, 2017 and expect the project to be completed by the
fourth quarter of 2018.
20
Personnel in Buenavista del
Cobre in Cananea, Sonora,
Mexico.
Next page
21
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
COMMUNITY OUTREACH
i
e
w
h
c
h
w
h
t
i
w
,
t
n
e
m
p
o
e
v
e
d
l
l
e
b
a
n
a
t
s
u
s
i
s
t
n
e
m
t
s
e
v
n
i
r
u
o
d
n
a
s
n
o
i
t
c
a
r
u
o
i
e
d
u
g
.
e
u
a
v
l
i
c
m
o
n
o
c
e
f
o
n
o
i
t
u
b
i
r
t
s
i
d
e
h
t
d
n
a
n
o
s
e
s
u
c
o
f
l
a
o
g
s
s
e
n
i
s
u
b
r
u
O
COMMUNITY OUTREACH
We work hard to keep our stakeholders involved in our Company and
make them participants in management and keep them informed of our
performance always taking into account their expectations.
Southern Copper Corporation (SCC) is a state-of-the-art, integrated mining
company whose innovative style lies not only in the utilization of more efficient
processes and new technologies, but also in our day-to-day operations,
where we work to have more and better results, always aiming at the
sustainability of the organization over time. We constantly strive to ensure
that the Company's performance in the social, economic and environmental
areas takes into account the expectations of our stakeholders.
Our business goal focuses on sustainable development, with which we guide
our actions and our investments and the distribution of economic value.
Every day we work to consolidate the confidence of our stakeholders by
making them participants in management, communicating our performance
and listening to their expectations.
OUR ENVIRONMENTAL COMMITMENT
We maintain an ongoing commitment to advance with the challenges of our
expansion and modernization programs in harmony with our environment.
In this sense, we not only seek regulatory compliance, we also operate
under the best environmental practices, in order to always achieve optimum
environmental performance, to identify, evaluate and mitigate the impacts
generated by our activities on the environment.
In order to succeed, we have strategies to meet the specific environmental
24
needs of each region in which we operate, and use an environmental
management system that we have developed, which has 9 lines of action.
- Responsible use of water and natural resources
- Prevention, control and reduction of air emissions
- Efficient use of energy
SCC confirms its
commitment to reduce
carbon footprint, and
enhance its position
as a sustainable
global company,
thereby improving
competitiveness and
contributing to
shift towards an
environmentally
friendly economic
development.
At SCC, we operate under the best
environmental practices, in order
to always achieve optimum
environmental performance.
certifications and Environmental Quality Certifications, are
the result of the efforts of all our employees and result from
a comprehensive application of our environmental practices.
- Reduction of green-house-gas emissions per ton
produced
- Reduction in waste generation and its integrated
management
- Mine closure
- Biodiversity conservation
- Reforestation
- Compliance with environmental regulations
These lines of action are carried out in compliance
with international and local certifications that rule our
operating units in the countries where we are present. In
2017, four of our units were granted the ISO 14001: 2004.
These certifications, together with the 15 Clean Industry
ENVIROMENTAL
EXPENDITURES
(MILLION DOLLAR)
Air
Ground
Waste
Biodiversity
Management
Water
Total
SCC
$
88.41
$ 58.31
$
$
$
$
36.40
3.12
7.29
15.42
$
208.95
Copper cathodes, Ilo Smelter,
Moquegua, Peru.
25
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
ENERGY AND CLIMATE CHANGE
At SCC we believe that the fight against climate change is everyone's
responsibility, including the private sector and the industries in
which we participate. In addition, we are aware of the effects of
climate change on our operations, so, by anticipating an increase in
the probability of occurrence of extreme weather events, we have
identified potential risks from global warming.
Given these challenges, we are taking measures, which include:
• Using energy more efficiently.
• Diversifying our energy matrix..
• Developing and using renewable energy sources.
• Increasing the level of electric power self-sufficiency.
• Promoting efforts to capture greenhouse gases.
Accordingly, we are diversifying our sources of generation of clean,
renewable energy for our supply. Our operations in Mexico have
decreased their indirect greenhouse gas emissions by consuming
clean energy supplied by SCC subsidiaries that generate electric
power through its high efficiency combined cycle plant and a
wind farm. By replacing traditional sources of energy with more
efficient and renewable sources, in 2017 we achieved a mitigation
of 552,973 tons of CO2eq., equivalent to taking 118,410 passenger
vehicles out of circulation for a year.
Simultaneously with our environmental policy, we continue
implementing actions to maximize electricity generation using our
own energy sources. In Mexico, we uses smelter' gases to recover
boiler heat and generate energy. In Peru, we generate energy from
26
renewable sources, in particular from two hydroelectric plants with
a combined capacity of 130 terajoules.
In addition to generating and consuming energy from renewable
sources and cleaner fuels, we have also implemented practices
that have resulted in higher energy efficiency in our operations,
In 2017, four of our units were
granted the ISO 14001:
2004. These certifications,
together with the 15 Clean
Industry certifications
and Environmental Quality
Certifications, are the
result of the efforts of all our
employees and result from
a comprehensive application
of our environmental
practices.
In 2017
we achieved a
mitigation of
552,973 tons of CO2.
Greenhouse, Buenavista del
Cobre, Cananea, Sonora, Mexico.
including the improvement, redesign, conversion and retrofitting
of equipment, rational use of resources, and personnel training to
improve their performance during operations.
It is important to highlight that in terms of climate change SCC,
along with Grupo México, have been working together with non-
governmental organizations to contribute in the fight against climate
change. Such is the case of Grupo Mexico's second report in 2017
to the Carbon Disclosure Project, through which we have developed
and reported our inventory of greenhouse gases at SCC.
With these actions, and others, SCC confirms its commitment to
reduce carbon footprint, and enhance its position as a sustainable
global company, thereby improving competitiveness and contributing
to shift towards an environmentally friendly economic development.
27
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
In the last 5 years, we have
increased our trees production
annual capacity in 187%.
BIODIVERSITY
We are the Company with the highest productive capacity of trees
in the mining industry in Mexico, we produced 4,966,200 trees in
2017. In the last 5 years, we have increased our trees production
annual capacity in 187%.
In our operating units we have six forest nurseries and greenhouses
whose production of regional native species is used to reforest
and rehabilitate ecosystems, including those areas not adjacent
to our operations. These forest nurseries contribute to biological
biodiversity and enrichment of flora and fauna; and in addition, they
act as natural carbon sinks, trapping CO2 from the atmosphere.
As part of our conservation efforts, we have a 5.7 hectare
Environmental Management Unit (EMU) that has been developed
to replicate the wildlife environment of threatened and endangered
species, including Mexican Gray Wolf and Turkey Gould, along with
other species that are part of our program.
The EMU strategy is focuses on reproduction and release of species,
as well as ecosystems regeneration. In addition, the program
reflects our efforts to involve community in the protection of the
environment, in particular, biodiversity of Sonora. In an Ecological
Path, along 1.8 kilometers, EMU works offering educational and
recreational activities, which involved 5,000 people and 52 schools
per year in average.
In Peru, we continue making significant environmental expenditures
in Ite bay remediation program in Tacna. In an area of 1,600
hectares, the contaminant removal program is successfully. It
28
is the largest and most diverse coastal waterfowl wetland in the
country, and it is also a tourist attraction that improve economic
development.
WATER MANAGEMENT
Water is the most important input for our mining operations. SCC
develops projects to ensure water sustainability, does an efficient
use of source, promotes, and reuse of water discharged by third
parties.
The efficient use of water and savings programs are based
on the implementation of pumping systems to recover water,
continuous water recovery from tailings and thickener processes,
implementation and maintenance of closed circuits to use the
total volume of process water, and Implementation of the Zero
Wastewater Discharge Program, looking for a more efficient
management of water resource.
These reused water programs represent a large portion of total
water consumption. In 2017, 71% of total water consumption in
mining operations was reclaimed water, which management results
speaks by itself.
In Toquepala and Cuajone, Peru, we are installing 7 additional high
efficiency thickeners that will allow us to recover 104,000 m3 / day
in each plant. Those equipment will increase water recovery 12%,
which represents 320 liters per second.
In some of our units, SCC uses municipal wastewater, which are
treated previously, such in San Luis Potosí and Cananea (Mexico),
so that we support regular fresh water supply to local population.
OUR COMMUNITIES
SCC looks to improves life quality in communities around its
operations, promoting an approach based on management
responsibility. SCC has developed a model which people become
as generators of its own development.
29
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
This model is known as "Casa Grande", and it has been implemented
through the following tools:
• 15 Community Development Centers
Those are Open Houses for community, where courses and
workshops are held to promote development.
• Participatory Diagnostics
Together, community and SCC participate carrying out development
actions.
• Community Committees
Integrated by volunteer leaders from community, as well as members
of the Company who collaborate in evaluating sustainable proposals.
• Seed Capital
As a result of the participation in social projects, it is possible to
implement strategies to improve quality of life in community.
• Productive Projects
Projects that transform community lives by productive skills.
For SCC, social welfare represents: synergy of different factors
that strengthen through a multi-strategy, and close dialogue with
communities. Therefore, health, education, culture and sports in each
location we operate are strengthen.
Participatory Diagnostics motivate local people to be part of the project
to identify needs and expectations, priorizing opportunities and start
30
In 2017, 71%
of total water
consumption in mining
operations was
reclaimed water.
Wetland, Ite Bay, Tacna, Peru.
Next page
31
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
working with them. Our Model, Casa Grande, permits recognize those
opportunities. By this model, our team of experts materialize Company
initiatives, includes its participation of SCC volunteers, community,
and community centers are meeting point to generate shared value.
SCC organizes events to receive initiatives from communities, where
education and environment are main axes. In addition, health, security
and productive development programs are complementary axes. For
us, children and young people are priority, because they will set future.
The projects presented in those calls are evaluated by community
services, media and citizen which participate in these events.
In 2017, SCC invested $60 million in community development actions
in areas as education, health, productive projects and development of
infrastructure and services.
Together, SCC’ social team and volunteers from communities
neighboring developed projects in 2017. We carried out 1,283 activities
and more than 110 projects, 12,868 community and corporate
volunteers participated in these programs. With projects named as
seed capital, and summer camps we encouraged the formation of
32
INVESTING IN COMMUNITY DEVELOPMENT PROGRAMS (US$)
scc
Community development programs, social linking and
productive projects
$
4,995,021
Infrastructure and equipment in neighboring communities
$
37,558,049
Investment in town site infrastructure
$
17,944,493
Total
$
60,497,563
development generators and proactive leaders that
states of Oaxaca and Mexico City in September 2017.
strengthen the well-being in their communities.
We support demolition, debris removal, food delivery,
structural diagnostics of houses and buildings, and
Moreover, SCC participated with other
institutions
provisional spaces were develop; as well, we provided
supporting activities in favor to earthquakes victims in
psychological and emotional care to these communities
In 2017, we carried out 1,283
activities and more than 110
projects, 12,868 community
and corporate volunteers
participated in these
programs.
Greenhouse, Buenavista del Cobre,
Cananea, Sonora, Mexico.
Juchitan and La Ventosa, Oaxaca.
In Mexico City, 24 members of our rescue brigade
supported the activities of “Secretaría de Defensa
Nacional y Proteccion Civil Estatal”. We also activated 20
centers to receive donations along the country.
33
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
In Peru, our mining operations are located in southern with rural
and remote characteristics. SCC contributes in close cooperation
with authorities and local institutions to promote development
of this area. Our commitment with the community is improving
nutrition, health, education and population capacities, support
agricultural sector and develop infrastructure.
SCC contributes to expand water supply in provinces where we
operate, developing infrastructure and modern irrigation system,
particularly in Torata, Moquegua region. Those consists in water
reservoirs, installation of pipes, construction of support walls, and
maintenance of watering infrastructure.
By dialogues, we promote in communities around us life quality
improve, access to different sources of wealth and well-being.
SCC supported transportation of more than 4,000 people,
promotes commerce, education and economic diversification.
By the Act “Obras por Impuestos”, SCC financed Ilabaya - Cambaya
- Camilaca way which represents the largest investment in this
kind of road, and it has increased connectivity between Andean
communities. This road was promoted by Ilabaya Municipality in
Jorge Basadre province. With an investment of more than US
$ 39 million, local commerce, safety road and regional tourism
have benefited four communities in Tacna, Peru.
34
'Forjando Futuro' is another program promotes by SCC. It trainers
local people to improve their capabilities according human
resources demand in direct influence area of our operations. It
also allows select workers from southern region for Cuajone and
Toquepala mines and Ilo smelter.
SCC contributes to expand
water supply in provinces
where we operate,
developing infrastructure
and modern irrigation
systems.
Finally, ICT project (Information and Communication Technologies)
in Moquegua, which is very important, is reducing technological
gap in rural areas in Peru. Through cooperation between Regional
Government and SCC, ICT has incorporated in teaching and learning
process, benefiting 33,560 students and teachers from Mariscal
Nieto, Sánchez Cerro and Ilo provinces in this region, Peru.
To date, SCC has invested more than $ 33 million to incorporate ICT.
Students and teachers benefit with this program in Moquegua.
At Southern Copper Corporation, our business model is focused
on continuously improving quality of life in communities around
our operation areas, by encouraging meaningful development, and
strengthening collective participation that will result in common good,
placing people as central agents of development.
Geologist analyzing ore in the
El Arco project, Baja California,
Mexico.
Our parent company, Grupo
México was selected to
be part of the S&P Dow
Jones Sustainability
Indices MILA Pacific
Alliance (DJSI MILA)
that includes the 42
leading sustainability
companies in the
countries that are
part of the Pacific
Alliance.
35
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
RESULTS OF OPERATIONS
7
1
0
2
n
i
C
C
S
o
t
l
e
b
a
t
u
b
i
r
t
t
a
e
m
o
c
n
i
t
e
n
r
u
O
.
n
o
i
l
l
i
m
5
.
8
2
7
$
s
a
w
RESULTS OF OP ERATIONS
THE YEARS ENDED DECEMBER 31, 2017, 2016 AND
2015.
Our net income attributable to SCC in 2017 was $ 728.5 million
or diluted earnings per share of $ 0.94, compared with net
income attributable to SCC of $776.5 million or diluted earnings
per share of $1.00 in 2016, and net income attributable to SCC
of $736.4 million or diluted earnings per share of $0.93 in 2015.
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.
7
1
0
2
N
I
5
.
8
2
7
$
38
Net sales
in 2017 were
$6,654.5 million,
compared to
$5,379.8 million
in 2016, an
increase of
$1,274.7 million.
The Company’s operating cash cost, as previously defined, for the
three years ended December 31, is as follows:
2017
2016
D O L L A R P E R P O U N D
201 5
Operating Cash Cost without by-product
revenues
1.49
1.45
1.65
Operating Cash Cost with by-product revenues
0.92
0.95
1.11
Cuajone mine,
Moquegua, Peru.
39
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
As seen on the chart above, our 2017 operating cash cost per
pound of copper without by-product revenues was $0.05 per
pound higher than in 2016, an increase of 3.5%. This was due to
higher production costs.
2017-2016: Net sales in 2017 were $6,654.5 million, compared
to $5,379.8 million in 2016, an increase of $1,274.7 million. This
23.7% increase was principally the result of higher metal prices
as shown below, and also due to slightly higher sales volumes of
copper (+1.8%) and zinc (+2.0%), partially offset by lower sales
volumes of silver (2.1%) and molybdenum (1.7%).
Sales prices for
the Company’s metals
are established, mainly
by reference to the
prices quoted in the
London Metal Exchange
(LME) and The New York
Commodity Exchange
(COMEX), or published
in the Platt’s Metals
WeekMetals Week.
2016-2015: Net sales in 2016 were $5,379.8 million, compared
to $5,045.9 million in 2015, an increase of $333.9 million or
6.6%. The increase was principally the result of higher sales
Maintenance plant,
Toquepala, Tacna, Peru.
40
volume of copper (+18.3%) and silver (+18.9%), partially offset
by lower prices for copper and molybdenum.
Prices: Sales prices for the Company’s metals are established,
mainly by reference to the prices quoted in the London Metal
Exchange (LME) and The New York Commodity Exchange
(COMEX), or published in the Platt’s Metals Week, for dealer
oxide mean prices for molybdenum.
.
P R I C E/ V O L U M E D ATA
2017
2016
2015
A V E R A G E M E TA L P R I C E S
Copper (per pound - LME)
Copper (per pound - COMEX)
Molybdenum (per pound)
Zinc (per pound - LME)
Silver (per ounce - COMEX)
S A L E S V O L U M E ( I N T H O U S A N D S)
Copper (pounds)
Molybdenum (pounds) (1)
Zinc (pounds)
Silver (ounces)
$ 2.80
$ 2.80
$ 8.13
$ 1.31
$ 17.03
2.21
2.20
6.42
0.95
17.10
2.50
2.51
6.59
0.88
15.68
1,959.2
1,923.9
1,625.8
47.1
237.2
16.9
47.9
232.4
17.2
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.
41
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
ENVIRONMENTAL MATTERS
e
v
i
s
n
e
t
x
e
d
e
t
u
t
i
t
s
n
i
s
a
h
y
n
a
p
m
o
C
e
h
T
s
m
a
r
g
o
r
p
n
o
i
t
a
v
r
e
s
n
o
c
l
a
t
n
e
m
n
o
r
i
v
n
e
d
n
a
u
r
e
P
n
i
s
e
i
t
i
l
i
c
a
f
i
i
g
n
n
m
s
t
i
t
a
.
o
c
i
x
e
M
ENVIRONM ENTAL 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 the 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 2017, 2016 and 2015,
were as follows (in millions):
Mexican operations
Peruvian operations
Total
2017
$ 128.9
$ 93.1
$ 222.6
2016
$140.1
$110.3
$250.4
2016
$ 22.0
$ 98.8
$120.8
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
44
enforces Mexican environmental laws, regulations and official standards. It may also
initiate administrative proceedings against companies that violate environmental
laws, which in the most extreme cases may result in the temporary or permanent
shutdown of non-complying facilities, the revocation of operating licenses and/or
other sanctions or fines.
In 2011, the General Law was amended, giving an
individual or entity the ability to contest administrative
acts,
including
environmental
authorizations,
permits or concessions granted, without the need
to demonstrate the actual existence of harm to
the environment as long as it can be argued that
the harm may be caused. In addition, in 2011,
amendments to the Civil Federal Procedures Code
(‘‘CFPC’’) were enacted. These amendments establish
three categories of collective actions by means of
which 30 or more people claiming injury derived from
environmental, consumer protection, financial services
and economic competition issues will be considered
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’’).
Coppers cathodes, SX-EW Plant,
Toquepala, Tacna, Peru.
45
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
to be sufficient in order to have a legitimate interest to seek
through a civil procedure restitution or economic compensation or
suspension of the activities from which the alleged injury derived.
The amendments to the CFPC may result in more litigation, with
plaintiffs seeking remedies, including suspension of the activities
alleged to cause harm.
In 2013, the Environmental Liability Federal Law was enacted. The
law establishes general guidelines for actions to be considered
to likely cause environmental harm. If a possible determination
regarding harm occurs, environmental clean-up and remedial
actions suffi cient to restore environment to a pre-existing condition
should be taken. Under this law, if restoration is not possible,
compensation measures should be provided. Criminal penalties
46
and monetary fi nes can be imposed under this law.
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
investments.
2014 accidental spill at Buenavista mine: In 2014, an accidental
spill of approximately 40,000 cubic meters of copper sulfate
solution occurred at a Buenavista mine leaching pond. This solution
Loading of sulfuric acid,
Punta Tablones Pier, Ilo,
Moquegua, Peru.
reached the Bacanuchi River and the Sonora River. The Company
took immediate actions to contain the spill, and to comply with
all necessary legal requirements. The Company hired contractors
including environmental specialists and assigned more than 1,200
of its own personnel to clean the river. In addition, the Company
developed a service program to assist the residents of the Sonora
River region.
Administrative proceedings: The National Water Commission, the
Federal Commission for the Protection of Sanitary Risk and PROFEPA
initiated administrative proceedings regarding the spill to determine
possible environmental and health damages. On September 15,
2014, the Company executed an administrative agreement with
PROFEPA, providing for the submission of a remediation action
plan to the Mexican Ministry of Environment and Natural Resources
(Secretaria de Medio Ambiente y Recursos Naturales ‘‘SEMARNAT’’).
The general remediation program submitted to SEMARNAT was
approved on January 6, 2015.
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.
The Company also created a trust with a Mexican development
bank, acting as a Trustee to support environmental remedial actions
in connection with the spill, to comply with the remedial action
plan and to compensate those persons adversely affected by the
spill. The Company committed up to two billion Mexican pesos
(approximately $150 million). A technical committee for 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 served
as an alternative mechanism for dispute resolution to mitigate
public and private litigation risks.
47
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
On December 1, 2016, SEMARNAT issued its final resolution which held that all
remediation actions contained in the remediation plan, had been fulfilled and that
all requirements had been complied with, except for biological monitoring activities
at the Sonora River that will continue until the first semester of 2019 pursuant
to the plan. On January 26, 2017, PROFEPA issued its final resolution under
which it declared all mitigation actions completed and its investigation closed. In
light of the above, the Company has obtained all necessary formal rulings from
SEMARNAT and PROFEPA. On February 7, 2017, the Company closed the trust.
As a result, $10.2 million of excess provision was credited to income in the first
quarter of 2017. The total expense recorded for this accident in 2014 and 2015
was $136.4 million. Therefore, the remediation concerns raised by SEMARNAT
and PROFEPA have been addressed.
Other procedures: On August 19, 2014, PROFEPA, as part of the administrative
proceeding initiated after the spill, announced the filing of a criminal complaint
against Buenavista del Cobre S.A. de C.V. (‘‘BVC’’), a subsidiary of the Company,
in order to determine those responsible for the environmental damages. The
Company is vigorously defending itself against this complaint. As of December
31, 2017, the case remains pending resolution.
Through the first half of 2015, six collective action lawsuits were filed in federal
courts in Mexico City and Sonora against two subsidiaries of the Company seeking
economic compensation, clean up and remedial activities in order to restore the
environment to its pre-existing conditions. Two of the collective action lawsuits
have been dismissed by the court. The plaintiffs in the four remaining lawsuits
are: Acciones Colectivas de Sinaloa, A.C. which established two collective actions,
48
Defensa Colectiva A.C.; and Ana Luisa Salazar Medina et al. which has been
granted a collective action certification. The remaining plaintiffs have requested
cautionary measures on the construction of facilities for the monitoring of public
health services and the prohibition of the closure of the Rio Sonora Trust. As of
December 31, 2017, these cases remain pending resolution.
Similarly, during 2015, eight civil action lawsuits were fi led against
BVC in the state courts of Sonora seeking damages for alleged
injuries and for moral damages as a consequence of the spill.
The plaintiffs in the state court lawsuits are: Jose Vicente Arriola
Nunez et al; Santana Ruiz Molina et al; Andres Nogales Romero
et al; Teodoro Javier Robles et al; Gildardo Vasquez Carvajal et al;
Rafael Noriega Souffl e et al; Grupo Banamichi Unido de Sonora
El Dorado, S.C. de R.L. de C.V; and Marcelino Mercado Cruz.
In 2016, three additional civil action lawsuits, claiming similar
damages, were fi led by Juan Melquicedec Lebaron; Blanca Lidia
Valenzuela Rivera et al and Ramona Franco Quijada et al. In
2017, BVC was served with thirty-three additional civil action
lawsuits, claiming similar damages.
SCC with a power
generation capacity
of 574 megawatts (MW)
using edge technology.
Sunset in Combined Cycle plant,
La Caridad, Nacozari, Sonora,
Mexico.
49
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
During 2015, four constitutional lawsuits were filed
have a material effect on its financial position or results
before Federal Courts against various authorities
of operations.
and against a subsidiary of the Company, arguing;
(i) the alleged lack of a waste management program
Peruvian operations: The Company’s operations
approved by SEMARNAT; (ii) the alleged lack of
are subject to applicable Peruvian environmental
a remediation plan approved by SEMARNAT with
laws and regulations. The Peruvian government,
regard to the August 2014 spill; (iii) the alleged lack
through the Ministry of Environment (‘‘MINAM’’)
of community approval regarding the environmental
conducts annual audits of the Company’s Peruvian
impact authorizations granted by SEMARNAT
to
mining and metallurgical operations. Through these
one subsidiary of the Company; and (iv) the alleged
environmental audits, matters related to environmental
inactivity of the authorities with regard of the spill
obligation, compliance with
legal
requirements,
in August 2014. The plaintiffs of these lawsuits are:
atmospheric emissions, effluent monitoring and waste
Francisca Garcia Enriquez, et al which established two
management are reviewed. The Company believes that
lawsuits, Francisco Ramon Miranda, et al and Jesus
it is in material compliance with applicable Peruvian
David Lopez Peralta et al. During the third quarter of
environmental laws and regulations. Peruvian law
2016, four additional constitutional lawsuits, claiming
requires that companies in the mining industry provide
similar damages were filed by Mario Alberto Salcido et
assurances for future mine closure and remediation.
al; Maria Elena Heredia Bustamante et al; Martin Eligio
In accordance with the requirements of this law, the
Ortiz Gamez et al; and Maria de los Angeles Enriquez
Company’s closure plans were approved by MINEM.
Bacame et al. During the third quarter of 2017, BVC
was served with another constitutional lawsuit filed by
Francisca Garc´ıa Enriquez et al. As of December 31,
2017, these cases remain pending resolution.
It is not currently possible to determine the extent of
the damages sought in these state and federal lawsuits
50
but the Company considers that these lawsuits are
without merit. Accordingly, the Company is vigorously
defending against them. Nevertheless, the Company
considers that none of the legal proceedings resulting
from the spill, individually or in the aggregate, would
In Peru, our mining operations
are located in the south of the country
in a rural environment, and SCC
contributes to its development
in close cooperation with
authorities and representative
organizations of the region.
SX-EW Plant, Toquepala,
Tacna, Peru.
Next page
51
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
See Note 9 ‘‘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
March 2016, MINEM approved the Mining Closure Plan for
the Toquepala expansion project. The closure plan for the Tia
Maria project was approved in February 2017. The Company,
52
however, has not recorded a retirement obligation for the project
as the construction permit has not been received, and work on
the project is on hold. The Company believes that under these
SCC participated
with other institutions
supporting activities
in favor to
earthquakes victims
in states of Oaxaca
and Mexico City in
September 2017.
circumstances the recording of a retirement obligation is not
appropriate. In December 2017, the Company submitted the
SX-EW pad, Toquepala,
Tacna, Peru.
mine closure plan update for the Cuajone operations,
World Health Organization and establishes a mean 24-
which is under review and evaluation by MINEM.
hour AQS equal to 250 micrograms per cubic meter
In 2008, the Peruvian government enacted environmental
regulations establishing stringent air quality standards
(‘‘AQS’’) for daily sulfur dioxide (‘‘SO2’’) in the air for the
Peruvian territory. These regulations, as amended in
2013, recognized distinct zones/areas, as atmospheric
(ug/m3) of SO2 to replace the current 24-hour AQS of
20 ug/m3 of SO2, effective since 2014. The decree also
establishes a mean 24-hour AQS equal to 2 ug/m3 of
gaseous mercury and a mean monthly AQS equal to
1.5 ug/m3 of lead in PM10.
basins. MINAM had established three atmospheric
The Company believes that these new AQS are
basins that required further attention to comply with
appropriate for Peru and will allow Peruvian industry to
the air quality standards. The Ilo basin was one of these
be competitive with other countries. The Company has
three areas and the Company’s smelter and refinery are
evaluated the potential impact of these new standards
part of the area.
and expects that its adoption will not have a material
In June 2017, MINAM enacted a supreme decree
impact on the financial SO2, than those required
by the new AQS. In addition, in June 2017, MINAM
which defines new AQS for daily sulfur dioxide and
enacted a supreme decree which establishes new
gaseous mercury for the Peruvian territory, as well as
quality standards for water in the Peruvian territory.
monthly lead in particulate matter (PM10), in order to
The Company has reviewed this decree and considers
adopt standards similar to comparable countries and
that its adoption will not have a material impact on its
conform them to the technical capabilities available in
financial position.
Peru, while ensuring the protection of public health.
This decree also considers criteria established by the
In 2013, the Peruvian government enacted soil
We promote
in communities
around
us life quality improve,
access to different
sources of wealth and
well-being.
environmental quality standards (‘‘SQS’’) applicable
to any existing facility or project that generates or
could generate the risk of soil contamination in its
area of operation or influence. In March 2014, MINAM
issued a supreme decree, which establishes additional
provisions for the gradual implementation of SQS.
Under this rule the Company had twelve months to
identify contaminated sites in and around its facilities
and present a report of identified contaminated sites.
53
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
These documents were submitted to MINEM for approval in April
2015. After MINEM’s review, the documents for the Company’s
operations were fully approved in July 2017. The next step is for
the Company to prepare a characterization study to determine the
depth, extent and physio-chemical composition of the contaminated
areas and define an appropriate remediation plan with time-frame
for completion. In addition, the Company must submit for approval
a Soil Decontamination Plan (SDP) within 30 months after being
notified by the authority. This SDP must include remediation actions,
a schedule and compliance deadlines. Also under this rule, if
deemed necessary and given reasonable justification, the Company
may request a one year extension for the decontamination plan.
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
goals will carry penalties, although no specific sanctions have been
established yet. During compliance with this 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,
54
which is expected for the first quarter of 2020. At that time 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
The Company believes
that these new Air
Quality Standards (AQS)
are appropriate for Peru
and will allow Peruvian
industry to be competitive
with other countries.
substantially progressed and therefore is not be able to disclose a
range of costs that is meaningful.
The Company believes that all of its facilities in Peru and Mexico 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, fi nancial condition or prospects and will not result in
material capital investments.
Tailing disposal plant in Quebrada Honda,
Toquepala, Tacna, Peru.
55
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
GENERAL INFORMATION
g
n
i
s
u
,
s
n
o
i
t
c
n
u
f
s
c
i
t
s
i
g
o
l
d
n
a
t
r
o
p
s
n
a
r
t
d
e
t
a
e
r
l
t
s
o
m
d
n
a
s
t
c
u
d
o
r
p
r
e
h
t
o
d
n
a
s
e
e
y
o
p
m
e
l
,
s
e
i
t
i
l
i
c
a
f
n
w
o
r
u
o
r
e
p
p
o
c
d
e
n
fi
e
r
f
o
n
o
i
t
c
u
d
o
r
p
.
t
n
e
m
p
u
q
e
i
d
n
a
,
s
s
e
c
o
r
p
n
o
i
t
c
u
d
o
r
p
e
r
i
t
n
e
e
h
t
e
g
a
n
a
m
o
t
f
o
l
e
v
e
l
h
g
h
i
a
e
v
a
h
s
n
o
i
t
a
r
e
p
o
r
u
O
s
u
s
w
o
l
l
a
t
a
h
t
n
o
i
t
a
r
g
e
t
n
i
l
a
c
i
t
r
e
v
e
h
t
o
t
e
r
o
e
h
t
f
o
i
i
g
n
n
m
e
h
t
m
o
r
f
58
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 74. Brief Description: Southern Copper
Corporation (SCC) 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. At December 31, 2017,
SCC is the mining company with the largest copper inventory
worldwide. 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.
Our Peruvian copper operations involve mining, milling and
flotation of copper ore to produce copper concentrates and
molybdenum concentrates, the smelting of copper concentrates
to produce anode copper, and the refining of anode copper to
produce copper cathodes. As part of this production process, we
also produce significant amounts of molybdenum concentrate
and refined silver. We also produce refined copper using SX/EW
technology. We operate the Toquepala and Cuajone mines high
in the Andes Mountains, approximately 860 kilometers southeast
of the city of Lima, Peru. We also operate a smelter and refinery
west of the Toquepala and Cuajone mines in the coastal city of
Ilo, Peru.
59
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
Interior view of SX-EW III, Buenavista
del Cobre, Sonora, Mexico.
Preview page
Our Mexican operations are conducted through our
subsidiary, Minera Mexico S.A. de C.V. (“Minera
Mexico”), which we acquired in 2005. Minera Mexico
engages principally in the mining and processing of
Rod plant in Metallurgic
Complex, La Caridad, Sonora,
Mexico.
copper, molybdenum, zinc, silver, gold and lead. Minera
S.A. de C.V. (together with its subsidiaries, the “IMMSA
Mexico operates through subsidiaries that are grouped
unit”) operates five underground mines that produce
into three separate units. Mexicana de Cobre S.A. de
zinc, lead, copper, silver and gold, a coal mine and a
C.V. (together with its subsidiaries, the “Mexcobre
zinc refinery. Effective February 1, 2012, Minerales
unit”) operates La Caridad, an open-pit copper mine,
Metalicos del Norte S.A was merged with Industrial
a copper ore concentrator, a SX/EW plant, a smelter,
Minera Mexico S.A. de C.V. (IMMSA). IMMSA absorbed
refinery and a rod plant.
Minerales Metalicos del Norte S.A.
Operadora de Minas e Instalaciones Mineras S.A de
We utilize modern/state of the art mining and processing
C.V. (the “Buenavista unit”) operates Buenavista,
methods, including global positioning systems and
formerly named Cananea, an open-pit copper mine,
computerized mining operations. Our operations
which is located at the site of one of the world’s largest
have a high level of vertical integration that allows us
60
copper ore deposits, a copper concentrator and two
to manage the entire production process, from the
SX/EW plants. The Buenavista mine was operated until
mining of the ore to the production of refined copper
December 11, 2010 by Mexicana de Cananea S.A. de
and other products and most related transport and
C.V. and by Buenavista del Cobre S.A. de C.V. from
logistics functions, using our own facilities, employees
that date until July 2012. Industrial Minera Mexico,
and equipment.
ECONOMIC GROUP
SCC, indirectly, is part of “Grupo Mexico S.A.B. de C.V.” which owns 100% of Americas Mining Corporation (“AMC”).
NAME OF THE
COMPANY
S E V E R A L A C T I V I T I E S
L O C AT I O N
INSCRIPTION
IN THE RPMV
%
1
2
3
4
5
6
7
8
9
10
11
12
Grupo México, S.A.B. de C. V.
Grupo México Servicios, S.A. de C.V.
ACTIVIDADES DE TRANSPORTE FERROVIARIO
Mexico
Mexico
Infraestructura y Transportes México, S.A. de C. V.
Mexico
ACTIVIDADES MINERAS
Americas Mining Corporation (“AMC”)
Southern Copper Corporation (SCC)
Minera México, S. A. de C. V.
Industrial Minera México, S.A. de C. V.
Buenavista del Cobre, S.A. de C. V.
Mexicana de Cobre, S.A. de C. V.
Southern Peru Copper Corporation, Agencia en Chile
Southern Peru Copper Corporation, Sucursal del Perú
Compañía Minera Los Tolmos, S.A.
USA
USA
Mexico
Mexico
Mexico
Mexico
Chile
Peru
Peru
100
100
100
88.91
99.96
100
100
98.20
100
(cid:57)
99.291
100
CORPORATE CAPITAL AND COMMON STOCK
The authorized number of shares
Issues an Paid Capital: Common Shares
Nominal Value of Common Shares
SHARES
2,000,000,000
884,596,086
$ 0.01
TOTAL NUMBER AND PERCENT OF SHARES
SHARES
INTEREST
Americas Mining Corporation
Common Shares
Total
687,275,997
85,7521,472
773,028,469
88.91%
11.09%
100.0%
1 Include 82.69% of common shares and 16.60% of investment shares.
61
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
OPERATIONS IN MEXICO
LA CARIDAD MINE
“La Caridad Concentrator” began operations in 1979.
ounces of silver per day, 247 ounces of gold per day
The concentrator has a current capacity of 94,500 tons
and 342 kilograms of selenium per day.
of ore per day. “Molybdenum Plant” started operations
in 1982, with a production capacity of 2,000 tons of
“La Caridad Wire Rod Plant”, a rod plant at the La
copper-molybdenum concentrate per day.
Caridad complex began operations in 1998 and reached
its full annual operating capacity of 150,000 tons in
“La Caridad SX-EW” has an annual production capacity
1999. The plant is producing eight millimeter copper
of 21,900 tons of copper cathodes. Approximately
rods with a purity of 99.99%.
835.5 million tons of leaching ore with an average grade
of approximately 0.243% copper have been extracted
Effluent and Dust Treatment Plant, a dust and effluent
from the La Caridad open-pit mine and deposited in
plant with a treatment capacity of 5,000 tons of smelter
leaching dumps from May 1995 to December 31, 2017.
dusts per year which will produce 1,500 tons of copper
by-products and 2,500 tons of lead sulfates per year.
LA CARIDAD METALLURGIC COMPLEX
This plant started its operating in 2012.
La Caridad Smelter started operations in July, 1986.
The actual installed capacity of the smelter is 1,000,000
BUENAVISTA MINE
tons per year, a capacity that is sufficient to treat all
A “Buenavista Concentrator”, the original concentrator
the concentrates of La Caridad and almost 40.5%
currently has a nominal milling capacity of 76,700 tons
of total production of the OMIMSA I and OMIMSA II
per day. The second concentrator began operations in
concentrators from Buenavista, and starting in 2010,
2015 with a nominal milling capacity of 100,000 tons
the concentrates from the IMMSA mines, as we closed
per day.
the San Luis Potosi smelter.
“Buenavista SX/EW I Plant” started operating in 1980,
“La Caridad Refinery” started operations in July, 1997,
with a capacity of 30 tons per day.
with a production capacity of 493 tons of copper
cathode per day and was expanded to 822 tons in
“Buenavista SX/EW II Plant” started operating in 1989,
62
January, 1998. The installed capacity of the refinery is
with a capacity of 66 tons per day and was expanded to
300,000 tons per year.
120 tons per day in 2001.
“La Caridad Precious Metals Plant” started operations
“Buenavista SX/EW III Plant” started operating during
in May, 1999, with a production capacity of 43,836
the June 2014, we completed the construction of a
Operator in Central Warehouse,
Ilo, Moquegua, Peru.
new SX-EW plant that significantly has increased production of
leachable material by approximately 120,000 tons per year. The SX-
EW facilities have a cathode production capacity of 174,470 tons
per year.
UNDERGROUND MINES
1. The Santa Barbara Unit with a milling capacity of 5,800 tons of
ore per day.
2. The Santa Eulalia Unit with a milling capacity of 1,450 tons of
ore per day.
3. The San Martin Unit with a milling capacity of 4,400 tons of ore
per day.
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.
63
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
7. The Zinc Refinery with a capacity of 288 tons per
de Mineria” authorized construction and expansion
day.
PERUVIAN OPERATIONS
TOQUEPALA
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
1. Toquepala Concentrator. Directorial Resolution
a throughput of 18,737 tons/day.
No.455-91-EM/DGM/DCM
dated
July
5,
1991 approved the operation of the Toquepala
CUAJONE
Concentrator. The resolution granted 240 hectares
1. 1. Botiflaca Concentrator in Cuajone: Directorial
of surface land and authorized a throughput of
Resolution No. 150-81-EM/DCM dated August
39,000 tons/day.
14, 1981 approved the operation of Botiflaca
Concentrator. The resolution granted 56 hectares
Based on Report No. 413-97-EM/DGM/DPDM
of surface land.
dated July 7, 1997, the “Director General de
Mineria” authorized the expansion of the Toquepala
Based on Report No. 266-99-EM/DGM/DPDM
Concentrator to a 43,000 tons/day throughput.
dated July 20, 1999 the “Director General de
Mineria” authorized the expansion of Botiflaca
Based on Report N° 547-2002-EM/DGM/DPDM,
Concentrator to 87,000 MT per day throughput.
dated November 6, 2002, the “Director General de
Mineria” authorized the expansion of the Toquepala
Resolution N° 379-2010-MEM-DGM/V dated
Concentrator to a capacity of 60,000 MT per day.
October 7, 2010, based on Report N°312-2010-
MEM-DGM-DTM/PB, authorized construction and
2. Toquepala Leaching Plant
(SX/EW). Directorial
expansion of Botiflaca Concentrator to 90,000 MT
Resolution No. 166-96-EM/DGM dated May 7, 1996,
per day throughput.
approved the operation of the Toquepala SX/EW plant.
The resolution granted 60 hectares of surface land
For operating reasons as part of the crusher process
64
and authorized a throughput of 11,850 tons/day.
optimization, on November 18, 2011, we requested
Based on Report No. 660-98-EM-DGM/DPDM
2144941 to add three additional facilities (HPGR
dated November 10, 1998 the “Director General
mill and others).
to the Peruvian authorities through resources N°
On May 2012, with Directoral Resolution N°
surface land and authorized a throughput of 2,100
153-2012-MEM-DGM-V
based
on
report
MT per day. Based on Report No. 988-2009-MEM-
165-2012-MEM-DGM-DTM-PB. MEM approved
DGM/V, dated December 16, 2009, Cuajone SX
and authorized the project to include three additional
plant operation was approved and authorized the of
facilities aforementioned on the procedure of the
the, with a capacity of 3100 MT per day.
amendment and increase of the installed capacity
from 87,000 to 90,000 MT per day.
ILO
1.
Ilo Smelter: Authorized (definitely) by Directorial
2. Cuajone Leaching Plant
(LX/EW). Directorial
Resolution No. 078-69-EM/DGM dated August 21,
Resolution No.155-96-EM/DGM dated May 6, 1996
1969 approved the operation of the Ilo Smelter. The
approved the operation of the Cuajone Leaching
resolution authorized a production of 400 Short
plant. The resolution granted 400 hectares of
tons/day of blister copper.
65
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
Based on Report No.204-2000-EM-DGM-DPDM
Resolution
N°520-2010-MEM-DGM/V
dated
dated June 20, 2000 the “Director General de
December 30, 2010, based on Report N° N°414-
Mineria” authorized the expansion of the Ilo Smelter
2010-MEM-DGM-DTM/PB, authorized changes in
to a 3,100 MT per day throughput of copper
Ilo copper refinery without expanded its capacity
concentrates.
throughput.
On February 4, 2010, by the Application Nº
3. Sulfuric Acid Plant: Authorized by Directorial
1961695, the Company began the process to
Resolution No. 024-96-EM/DGM dated January
obtain authorization from the MINEM to operate a
19, 1996, approved the operation of the sulfuric
capacity of 3,770 MT per day, which is included
acid plant, installed at the smelter, at a production
as an ancillary facility to Acid Plant No. 2, with a
rate of 150,000 tons per year.
capacity of 2,880 MT per day or 1,051,200 MT
per year.
Based on Report No. 313-98-EM/DGM/DPDM
dated May 21, 1998 the “Director General de
2.
Ilo Refinery: Authorized by Report No. 056-94-EM/
Mineria”, authorized the expansion of the Ilo Sulfuric
DGM/DRDM dated May 27, 1994 the “Director
Acid Plant to a capacity of 300,000 tons per year
General de Mineria” authorized the operation of the
production.
Ilo Copper Refinery at 533 MT per day throughput
of blister copper.
4. “Coquina Wash Plant and Sea shell Concentrates”
authorized to operate by Directorial Resolution Nº
Based on Report No. 506-97-EM/DGM/DPDM
110-93-EM/DGM of August 3, 1993. The plant
dated September 2, 1998 the “Director General
processes 95 TC/h of raw material (coquina)
de Mineria” authorized
the expansion of
Ilo
recovered from nearby mines. Seashell is produced
Copper Refinery to a capacity of 658 MT per day
separating sand and other materials from the
throughput.
coquina using sea water washing screens.
66
Based on Report N° 080-2002-EM-DGM/DPDM,
dated March 14, 2002, the “Director General de
Mineria” authorized the expansion of the Ilo Copper
Refinery to a capacity of 800 MT per day.
Continuously,
we carry out exploration
activities for
locate more minerals
resources and
for discover new deposits.
With a capital investment of
$ 2,900 million, we are
currently working in several
copper projects in Peru.
Cuajone mine, Moquegua, Peru.
Resolution N°038-2011-MEM-DGM-DTM/PB dated February
2, 2011, 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. By the Application Nº 2499277
dated on May 19, 2015, SPCC requested temporary suspension
for three years of its plant Dry Sea shell Concentrates.
67
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
D ES C RIPTION OF OPERATIONS AND D EV E LOP M E N T
R EG ARDING THE ISSUING ENTITY P URP O SE
THE PURPOSE
The purpose of 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 SCC:
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.
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.
68
The Branch is registered in the Electronic Record Nº 03025091 of
the Juridical People of the Registry Office of Lima and Callao.
ACTOS POSTERIORES A LA CONSTITUCIÓN DE SCC:
ACTIONS FOLLOWING COMPANY INCORPORATION:
Capital Increase:
By Public Deed dated May 31, 1995, signed before notary public of
Lima, Dr. Carlos A. Sotomayor Bernos, the Branch capital increase was
formalized. It was made through money contribution by the Company in
favor of its Peru Branch and by the owners of labor shares, pursuant
to Legislative Decree No. 677. The capital contribution made by the
Company was aimed at increasing the capital allotted to the Branch by
the headquarters and registered in Peru. The capital contribution made
by the Labor Shares (today Investment Shares) owners was assigned to
the Labor Shares account of the Branch for issuing new Labor Shares.
Miners in Santa Eulalia
underground mine,
Chihuahua, Mexico.
Part of the money contribution made by the Company in favor of its
Branch and by the Labor Shares owners was applied as a capital
premium to the Resident account as Additional Capital.
69
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
EXCHANGE OF INVESTMENT SHARES (LABOR SHARES)
FOR COMMON SHARES:
Dated September 7, 1995, “Southern Peru Copper Holding Company”
was also incorporated pursuant to the Laws of the State of Delaware,
aiming at acting as a holding company that owns all Southern Peru
Copper Corporation shares, and at performing an exchange of the
shares that were then called “Labor Shares” (today Investment
Shares) issued by the branch in Peru, delivering the owners of labor
shares a certain number of Common Shares issued by SPCC in the
United States. As a consequence of this share exchange, at that
times, 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).
70
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.
Toquepala
Expansion Project,
Tacna, Peru.
As a consequence of this corporate name change, the
Mexico, acquired in the United States 100% of ASARCO
mining activities of the Company in Peru started being
Incorporated, the main shareholder of Southern Peru
performed under the name of Southern Peru Limited,
Copper Corporation at that time. In this way, SPCC became
Peru Branch (SPL).
a subsidiary of Grupo Mexico, who keeps its shareholding
through Americas Mining Corporation (AMC).
On December 31, 1998, the merger between Southern
Peru Copper Corporation and Southern Peru Limited
ACQUISITION OF MINERA MEXICO (“MM”),
was agreed. The first company absorbed the second
AND OTHER CORPORATE CHANGES:
one and assumed all its assets and liabilities, including
SCC shareholders, in a shareholder extraordinary
the Branch in Peru. This merger did not imply any
meeting dated March 28, 2005, approved issuance
change to the share percentage in the corporate capital
of Common Shares and required actions related to
or in the Net Worth Share Account (Investment Shares),
the acquisition of MM, a firm incorporated pursuant to
which were kept the unchanged.
the Laws of the Republic of Mexico. This transaction
was approved by more than 90% of the stocks and
As a consequence of the merger, the mining activities
circulating capital of SCC. To acquire Minera Mexico,
of the corporation in Peru were again carried out under
SCC issued 67,207,640 shares in exchange for MM
the name of Southern Peru Copper Corporation, Peru
shares. Once the shares related to the acquisition were
Branch, or the abbreviated name of “Southern Peru”
issued, AMC increased its share in SCC from 54.2% to
and/or the acronym SPCC.
approximately 75.1%.
CHANGE OF ECONOMIC GROUP:
AMC Increased its Participation in SCC:
In November 1999, Grupo Mexico S.A.B. de C. V., a firm
In 2008 and 2009 Grupo Mexico, through its wholly
incorporated pursuant to the Laws of the Republic of
owned subsidiary Americas Mining Corporation,
SCC looks to improves life quality
in communities around its
operations, promoting an approach
based on management responsibility.
SCC has developed a model which
people become as generators of its
own development.
purchased 11.8 million and 4.9 million shares of the
Company’s common Stock, respectively.
SCC $500 Million Share Repurchase Program:
In 2008, our Board of Directors (‘‘BOD’’) authorized a
$500 million share repurchase program that has since
been increased by the BOD and is currently authorized to
$3 billion. Pursuant to this program, through December
71
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
31, 2017 we have purchased 119.5 million shares of our common
stock at a cost of $2,900 million. These shares are available for
general corporate purposes. We may purchase additional shares
from time to time, based on market conditions and other factors. This
repurchase program has no expiration date and may be modified or
discontinued at any time.
At December 31, 2016, Grupo Mexico indirect ownership is 88.91%.
CHANGE IN THE CERTIFICATE OF INCORPORATION:
On March 28, 2005, following Board of Directors recommendations,
SCC shareholders approved in an extraordinary meeting the
amendments to the Articles of Incorporation Deed, changing the
composition and obligations of some Board committees.
Special Independent Director:
The changes to the Articles of Incorporation Deed require the Board
to include a certain number of special independent directors. A
special independent director is a person who (i) complies with the
independence standards of the New York Stock Exchange (or any
other stock exchange or association in which Common Shares are
listed) and (ii) is appointed by the Special Appointment Committee
of the Board. A special independent director may only be removed
from the Board upon a justified cause.
Our Amended and Restated Certificate of Incorporation determine
72
that the minimum number of Special Independent Directors in that
Directory at any time shall equal the total number of directors in
the Board multiplied by the percentage of Common Shares all the
shareholders (that are not Grupo Mexico and its affiliates) have,
rounding up to the following integer number. Notwithstanding the
abovementioned, the total number of people appointed as special
independent directors (not belonging to Grupo Mexico) cannot be
less than two or more than six.
Special Nominating Committee
A Currently, the Special Nominating Committee functions as a
special committee to nominate special independent directors to
the Board. Pursuant to our Amended and Restated Certificate of
Incorporation, as amended, a special independent director is any
director who (i) satisfies the independence requirements of the New
York Stock Exchange or NYSE (or any other exchange or association
on which the Common Stock is listed) and (ii) is nominated by the
Special Nominating Committee. The Special Nominating Committee
has the right to nominate a number of special independent directors
based on the percentage of our Common Stock owned by all holders
of our Common Stock, other than Grupo Mexico and its affiliates.
Casa Grande provides open spaces for
communities, where courses and workshops are
taught to encourage development.
73
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
The Special Nominating Committee consists of three
be necessary for the adoption of any resolution or the
directors. Two directors (2) of whom are Luis Miguel
taking of any action.
Palomino and Carlos Ruiz Sacristan (each an “Initial
Member” and, together with their successors, “Special
Notwithstanding the foregoing, the power of the Special
Designees”) and such other director, currently Gilberto
Nominating Committee to nominate special independent
Perezalonso Cifuentes, as may be appointed by the
directors is subject to the rights of the stockholders to
Board of Directors or the “Board Designee”. The Board
make nominations in accordance with our by-laws.
Designee will be selected annually by the Board of
Directors. The Special Designees will be selected
The provisions of the Amended and Restated Certificate
annually by the members of the Board who are special
of Incorporation, as amended, relating to Special
independent directors or Initial Members. Only Special
74
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
Casa Grande has been implemented
Community Committees, integrated by
volunteer leaders from community, as well
as members of the Company who collaborate
in evaluating sustainable proposals.
Independent Directors may only be amended by the
Company lends and borrows funds among affiliates
affirmative vote of a majority of the holders of shares of
for acquisitions and other corporate purposes. These
Common Stock (calculated without giving effect to any
financial transactions bear interest and are subject to
super majority voting rights) other than Grupo Mexico
review and approval by senior management, as are all
and its affiliates.
related party transactions. It is the Company’s policy
that the Audit Committee of the Board of Directors shall
TRANSACTIONS WITH AFFILIATES:
review all related party transactions. The Company
The Company has entered into certain transactions
is prohibited from entering or continuing a material
in the ordinary course of business with parties that
related party transaction that has not been reviewed
are controlling shareholders or their affiliates. These
and approved or ratified by the Audit Committee.
transactions include the lease of office space, air
transportation, construction services and products
CHANGE OF CORPORATE NAME AND OTHER
and services related to mining and refining. The
CORPORATE CHANGES:
SCC provides educational
materials to our stakeholders.
On September 20, 2005, by written consent instead
of an extraordinary shareholder meeting, the majority
shareholder approved the corporate name change of
75
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
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 of
acknowledging the position of the Peruvian Branch with
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
acquisition of some mining exploration concessions, and
the copper market, and the need to prevent any possible
its exploration activities in the Republics of Argentina
client loss, as well as to guarantee the revenue flow
and Ecuador.
from sales, its financial and economic revenues and
its solvency, the Board of Directors agreed to maintain
Additionally, on the same date, the majority shareholder
the original corporate name to the Peru Branch, that is,
approved an amendment of our Articles of Incorporation
Southern Peru Copper Corporation, Peru Branch, or the
Deed to remove others’ provisions in our Deed related
abbreviated name “Southern Peru” and/or the acronym
with our Class A Common Shares that were formerly
SPCC.
in circulation, which were converted to Common
Shares on May 19, 2005, and to change the number
Changes
in
the Certificate of Articles of
of Corporate directors from fifteen to a number that will
Incorporation and Bylaws
be regularly established following agreement of most of
Dated January 26, 2006,
the Board approved
Board members stipulating the number of directors will
amendment to Southern Copper Corporation’s bylaws:
not be less than six or more than fifteen.
(i) aiming at removing the provisions related to Class
A Common Shares among other changes.(ii) adding
The Deed amendment was submitted to the Secretary
a new provision for advance notice to shareholders
of State of the State of Delaware, and came into effect
seeking to nominate directors or to propose other
on October 11, 2005.
business at annual or special meetings of the Common
PERU BRANCH NAME:
Stockholders (as applicable) (iii) substitute Grupo Mexico
for ASARCO Incorporated in the “Change in Control”
76
Generally,
the change of headquarters corporate
definition in the Corporation’s by-laws (iv) and eliminate
name should comprise the corresponding name of the
the 80% supermajority vote requirement for certain
ancillary organizations linked to it, as is the case of the
corporate actions. The modification of the Modified
Peru Branch through which the Corporation develops its
Certificate of Incorporation increased the capital stock
mining activities in Peru.
from 167,207,640 shares to 320,000,000 shares.
These modifications were submitted for approval of the
Stock had an affirmative vote of 79.85% of the required
shareholders at the shareholders annual meeting held
votes. Because the required vote for the approval of this
on April 27, 2006 which was adjourned and reconvened
proposal was 80% and because there were still votes
for May 4, 2006, and later on adjourned and reconvened
that needed to be tabulated, the annual meeting for this
for May 11, 2006.
proposal was adjourned until May 4, 2006. On May 4,
2006, at the adjourned and reconvened meeting the
At the annual meeting, on April 27, 2006, the proposal
stockholders approved the proposal with an affirmative
to amend the by-laws to eliminate certain extraneous
vote of 80.61% of the required votes.
provisions relating to the retired series of Class A Common
SCC participated with other institutions
supporting activities in favor to
earthquakes victims in Mexico.
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
77
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
substitute Grupo Mexico for ASARCO Incorporated in the “Change in
Control” definition in the Corporation’s bylaws; (iii) the amendments
to the Amended and Restated Certificate 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.
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 vote of 79.61% of the required
votes.
SCC is indirectly, part of Grupo Mexico S.A.B. de C.V. which owns
100% of Americas Mining Corporation (AMC) shareholding, owner
of 88.91% of SCC shares.
INFORMATION ABOUT PLANS AND INVESTMENT
POLICIES:
See Capital Expenditures and Exploration on page 15.
Relationship between the Issuer and the Government
On November 20, 1996, SCC and the Peruvian Government (Ministry
of Energy and Mines) signed a contract that remained effective until
the year 2010 and guaranteed the tax stability and the availability of
78
exchange to foreign currency of the Branch’s earnings related to the
operation of the SX/EW plant at Toquepala and the Solvent Extraction
(SX) operation in Cuajone. Also, on April 18, 1995, SCC and the
Peruvian Government (CONITE) signed a contract that remained
effective during ten years and guaranteed the availability of foreign
currencies, free remittance of dividends to the exterior, among other
guarantees related to the acid plant of the Ilo Smelter.
SCC obtains refunds for tax credits in Peru for the general sales
tax (IGV) paid in connection with the acquisition 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.
Special Mining tax
In September 2011, the Peruvian government enacted a new tax for
the mining industry. This tax is based on operating income and its
rate ranges from 2% to 8.4%. It begins at 2% for the first 10% of
operating income margin and for each additional 5% of operating
income margin is increased by an additional rate of 0.4% until 85%
of operating income margin is reached.
Mining Royalty
In September 2011, the Peruvian Congress approved an amendment
to the mining royalty charge. The new mining royalty charge is based
on operating income margins with graduated rates ranging from 1%
to 12%, with a minimum royalty charge assessed at 1% of net sales.
If the operating income margin is 10% or less, the royalty charge is
1% and for each 5% increment in the operating income margin, the
royalty charge rate increases by 0.75%, up to a maximum of 12%.
SCC, indirectly,
is part of “Grupo Mexico
S.A.B. de C.V.” which
owns 100% of Americas
Mining Corporation
(“AMC”).
79
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
SAFETY AND HEALTH
In Southern Copper Corporation, life caring, health and welfare of
our employees and their families is 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
identifi cation, control and mitigation of risks, prioritizing actions
and the necessary care to prevent accidents.
In 2017 we maintained 11 units in Mexico and Peru whose
Occupational Safety and Health Management System, have
been certifi ed according to OHSAS 18001: 2007. Additionally, in
Mexico we have 17 units certifi ed 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 2017 on occupational health
and safety include:
S
T
N
E
D
I
C
C
A
LE SS
%
8
2
• The occupational accident rates at our mining operations in
80
SCC is 41% below average mining industry in USA, according to
Mine Safety and Health Administration.
• The Mining Chamber of Mexico (CAMIMEX) awarded the “Jorge
Rangel Zamorano” Silver Helmet Trophy to Mexicana de Cobre and
Santa Eulalia unit, for achieving the lowest recorded accident rates
in the industry, as for his efforts in the field of accident prevention.
• In Peru, SCC has reduced its rate of accidents by 33% during
the last 5 years by the implementation of programs to reinforce
prevention culture.
As a result of our commitment with safety and health, SCC has
reduced its rate of accidents by 28%. Every year, we reinforce our
policy of prevention to identify risks and set strategies to reduce
accidents in our processes for the care of the physical integrity of
our employees.
Cuajone mine,
Moquegua, Peru.
81
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
ACCIDENT RATE (IR),
SCC, 2012 - 2017
SEVERITY RATE (SR),
SCC, 2013 - 2017
2
1
0
2
9
0
.
1
3
1
0
2
1
0
.
1
4
1
0
2
9
8
.
0
5
1
0
2
2
7
.
0
6
1
0
2
7
7
.
0
7
1
0
2
9
7
.
0
2
1
0
2
9
6
.
0
3
1
0
2
1
2
.
0
4
1
0
2
8
5
.
0
5
1
0
2
4
2
.
0
6
1
0
2
2
3
.
0
7
1
0
2
1
5
.
0
IR =
No.of disabling accidents
No.of total men - hours worked
x 200,000
GR =
No.of days lost
x 1.00
No.of total men - hours worked
These results reflect the efforts in our culture of safety
During the last five years, we reduced our rate of
activities, the implementation of inspection plans and,
occupational diseases by 52% as a result of various
especially, the work and commitment of our employees.
programs on education, prevention and control risks, as
OCCUPATIONAL HEALTH
Healthy environments are part of the organizational
to our employees and, in some cases, to their families,
contractors, suppliers, institutions and the general
well as diseases treatment. These programs are offered
culture and management system, as a responsibility of
public.
82
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.
OCCUPATIONAL DISEASE
RATE,
SCC, 2013-2017
3
1
0
2
7
4
.
0
4
1
0
2
2
3
.
0
5
1
0
2
2
1
.
0
6
1
0
2
7
3
.
0
7
1
0
2
2
4
.
0
ODR =
No. of Cases of Occupational Diseases
No. of Total Men-Hours Worked
x 200,000
ACTIVITIES:
TARGETING WORKPLACE PERSONNEL / LABOR
• Security courses and conferences
TARGETING EMPLOYEES’ FAMILIES AND
• Expo safety
• Internal Security
• Health Fair
• Health Career Forum
COMMUNITY / FAMILY:
• Guided tours “Knowing my Company”
• Health career
• Parades Familiar Promote values
• Awards to employees or Departments with
• Firefighting courses
ZERO ACCIDENTS
• Familiar contests and contests to
• Health fair
83
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
INVESTMENT IN SAFETY AND HEALTH
During 2017, we invested over $112 million in occupational safety
and health, focusing efforts on engineering works, purchase of
personal protective equipment, training, coaching, and industrial
hygiene studies. In enhanced occupational health, we have
developed programs in promotion and protection 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
3.31
0.67
8.89
1.13
94.52
108.52
$
$
$
$
$
$
INVESTMENT IN OCCUPATIONAL HEALTH
(in millions)
Development, Promotion and Protecition of Health
Detection and prevention
Treatment
Rehabilitation
84
Total
SCC
0.72
2.39
0.31
0.04
3.46
$
$
$
$
$
EMPLOYEES
FOR THE YEAR ENDED DECEMBER 31TH
M E X I C A N O P E R AT I O N S
Total
P E R U V I A N O P E R AT I O N S
Total
E C U A D O R O F F I C E
Total
A R G E N T I N A O F F I C E
Total
C H I L E O F F I C E
Total
C O R P O R AT E O F F I C E
Total
T O TA L E M P L O Y E E S I N S C C
Total Mexico
Total Peru
Total Ecuador
Total Argentina
Total Chile
Total Corporate Office
Total
2017
2016
2015
2014
2013
8,450
8,762
8,316
8,105
8,182
4,628
4,562
4,602
4,524
4,430
27
18
10
2
8,450
4,628
27
18
10
2
47
20
20
3
8,762
4,562
47
20
20
3
52
26
26
2
8,316
4,602
52
26
26
2
52
26
26
2
8,105
4,524
52
26
26
2
17
16
18
2
8,182
4,430
17
16
18
2
13,135
13,414
13,024
12,735
12,665
85
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
PRINCIPL ES OF COR PO RA TE G OVERN AN CE
Information referred to the Resolution of “Superintendencia del Mercado de
Valores” No. 012-2014-SMV / 01, consisting of a "Report on Compliance with
the Code of Good Corporate Governance for Peruvian Companies" is applicable
only to Peruvian companies. Not being SCC a Peruvian company, this report is not
submitted to the “Superintendencia del Mercado de Valores” (SMV) of Peruvian
Republic. Notwithstanding, SCC submits the "Annual Written Affirmation" to SMV.
This document is an informative of Good Corporate Governance which our company
remits annually to the New York Stock Exchange.
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 12
“Commitments and Contingencies” to our Consolidated Financial Statements.
Changes of those responsible for the preparation and revision of the financial
Information.
At December 31, 2017, no changes have been done.
INFORMATION RELATED TO THE STOCK ENTERED IN THE STOCK
MARKET PUBLIC
Common Stock
86
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 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.
87
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
Since 2008 and 2017, the Company and AMC had bought shares
periodically.
At December 31, 2017, there were of record 773,028,469 shares of
common stock of the Company, par value $0.01 per share, outstanding.
CORPORATE BONDS
Between July 2005 and October 2015 the Company issued senior unsecured
notes eight times totaling $6.2 billion as listed above. Interest on the notes is
paid semi-annually in arrears. The notes rank pari passu 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 $51.2 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.
88
At December 31, 2017, the Company was in compliance with this covenant.
Toquepala Expansion
Project, Tacna, Peru.
Please see Note 11 “Financing” for a discussion about the covenants
requirements related to our long-term debt, on Form 10-K 2017.
Cuajone mine,
Moquegua, Peru.
Next page
89
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
90
MEMBERS OF THE BOARD OF DIRECTORS AT DECEMBER 31, 2017
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
91
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
Company, since August 2010. Previously, he was the
the most recent being that of President and Chief
Company’s President and General Director and Chief
Executive Officer from June 1975 to June 1987. He
Operating Officer from December 1999 to October
later served as Mexico’s Ambassador to Canada from
20, 2004. Mr. Gonzalez Rocha has been a director of
July 1987 to February 1989. Mr. Carrillo Gamboa
Grupo Mexico since 2002. He was General Director of
served from 2002 through March 2010 on the board
Mexicana de Cobre, S.A. de C.V. from 1986 to 1999
and on the audit committee of Empresas ICA, S.A.B.
and of Buenavista del Cobre, S.A. de C.V. (formerly
de C.V. (NYSE—ICA), an engineering, procurement
Mexicana de Cananea, S.A. de C.V.) from 1990 to
and construction company. He has been a member
1999. He was an alternate director of Grupo Mexico
of the valuation, contract review, nominating and
from 1998 to April 2002. Mr. Gonzalez Rocha is a civil
corporate governance, and audit committees of The
engineer with a degree from the Autonomous National
Mexico Fund, Inc. since 2002. Mr. Carrillo Gamboa
University of Mexico ("UNAM") in Mexico City, Mexico.
has served on the board and audit committee of
Grupo Mexico since 2004 and on the boards of
EMILIO CARRILLO GAMBOA
Grupo Nacional Provincial S.A.B. (Mexican insurance
Director.
company) since 2007, Grupo Posadas, S.A.B. de
Mr. Carrillo Gamboa has been a director of the
C.V. (Mexican hotel operation company) since 2006,
Company since May 30, 2003 and is our fourth
Grupo Profuturo, S.A.B. de C.V. (Mexican insurance
independent director nominee. Mr. Carrillo Gamboa
and pension holding company) since 2009, and
is a prominent lawyer in Mexico and has been the
Kimberly-Clark de Mexico, S.A.B. de C.V. (consumer
Senior Partner of the Bufete Carrillo Gamboa,
products) since 2002. Mr. Carrillo Gamboa has a law
S.C., a law firm specializing in corporate, financial,
degree from the UNAM in Mexico City, Mexico. He
commercial, and public utility issues, for the last five
also attended a continuous legal education program
years. Mr. Carrillo Gamboa has extensive business
at Georgetown University Law Center in Washington
experience and currently serves on the boards of many
D.C., and practiced at the World Bank.
prestigious international and Mexican corporations,
as well as charitable organizations. Since March 9,
ALFREDO CASAR PEREZ
92
2005, he has been Chairman of the board of The
Director.
Mexico Fund, Inc. (NYSE—MXF), a nondiversified
Mr. Casar Perez has been a director of the Company
closed-end management investment company. Mr.
since October 26, 2006. He has been a member of the
Carrillo Gamboa held various offices with Telefonos de
board of directors of Grupo Mexico since 1997. He is
Mexico, S.A. de C.V. (“TELMEX”) from 1960 to 1987,
also a member of the board of directors of Ferrocarril
Mexicano, S.A. de C.V., an affiliated company of Grupo Mexico,
since 1998 and its Chief Executive Officer since 1999. From 1992
to 1999, Mr. Casar Perez served as General Director and member
of the board of directors 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.
ENRIQUE CASTILLO SANCHEZ MEJORADA
Director.
Mr. Castillo Sanchez Mejorada has been a director of the Company
since July 26, 2010 and is our fourth 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). Since November 2016 to
date, Mr. Castillo Sanchez Mejorada has been Chairman of the Board
of Banco Nacional de Mexico, S.A. (Citibanamex) one of the largest
banks in Mexico.
From April 2011 to May 2013, Mr. Castillo Sánchez Mejorada was a
senior advisor at Grupo Financiero Banorte, S.A.B. de C.V. (“GFNorte”)
a financial holding institution that controls a bank, a broker dealer
93
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
and other financial institutions in Mexico. From October 2000 to
March 2011, Mr. Castillo Sánchez 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 on April 2011. In addition, from March 2007 to March
2009, Mr. Castillo Sánchez Mejorada was the President of the Mexican
Banking Association (Asociación de Bancos de México). Currently, Mr.
Castillo Sánchez Mejorada is Chairman of the Board of Banco Nacional
de Mexico, S.A. (Citbanamex), one of the largest banks in Mexico and
serves as an independent director on the board 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) Médica Sur, S.A.B. de C.V., a Mexico-based company
engaged in the hospital business and (iv) UNIFIN, an independent
leasing company. He is also a Senior Advisor for General Atlantic in
Mexico, a private equity firm based out of New York. From April 2012
to April 2016, Mr. Castillo Sánchez Mejorada served as a member of
the board of directors of Organización 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. From April 2012
until April 2014, Mr. Castillo Sánchez 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 twelve airports in
94
the Pacific and central regions of Mexico. From April 2010 until 2013,
Mr. Castillo Sánchez Mejorada was a member of the board of directors
of Grupo Casa Saba, S.A.B. de C.V., a Mexican wholesale distributor
of pharmaceutical, health, beauty and other consumer products and
operator of a retail pharmacy chain. Mr. Castillo Sánchez Mejorada has
been a member of the audit committee of Alfa, S.A.B.
Condumex, S.A. de C.V. (telecommunications, electronic
de C.V. since 2010. Mr. Castillo Sánchez Mejorada
and automotive parts producer) for eight years. Mr. Garcia
holds a Bachelor’s degree in Business Administration
de Quevedo was the Chairman of the Mining Chamber
from the Anáhuac University, in Mexico City, Mexico.
of Mexico from November 2006 to August 2009. He
is a chemical engineer with a degree from the UNAM
XAVIER GARCIA DE QUEVEDO TOPETE
in Mexico City, Mexico. He also attended a continuous
Director.
business administration and finance program at the
Mr. Garcia de Quevedo has been a director of the
Technical Institute of Monterrey in Monterrey, Mexico.
Company since November 1999. He was our Chief
Operating Officer from April 12, 2005 until April 23,
DANIEL MUÑIZ QUINTANILLA
2015. Since November 1, 2014 Mr. Garcia de Quevedo
Director.
Topete serves as the President of the infrastructure
Mr. Muñiz has been a director of the Company since May
division of Grupo Mexico, composed of the energy, gas,
28, 2008. He was appointed Executive Vice President of
oil and construction subsidiaries of Grupo Mexico. Mr.
the Company on April 28, 2016. Mr. Muñiz has been the
Garcia is the Chief Financial Officer of Grupo Mexico.
Chief Financial Officer of Grupo Mexico since April 2007
He was the President and Chief Executive Officer of
to October 2015. He has been Executive Vicepresident
Southern Copper Minera Mexico from September 2001
of AMC since October 2015. Prior to joining Grupo
until November 1, 2014. He was the President and
Mexico, Mr. Muñiz was a practicing corporate-finance
Chief Executive Officer of Americas Mining Corporation
lawyer from 1996 to 2006. During this time he worked at
from September 7, 2007 to October 31, 2014. From
Cortes, Muñiz y Nuñez Sarrapy; Mijares, Angoitia, Cortes
December 2009 to June 2010, he was Chairman and
y Fuentes; and Baker & McKenzie (London and Mexico
Chief Executive Officer of Asarco LLC, previously he
City offices). He holds a Master’s degree in Financial Law
was President of Asarco LLC from November 1999 to
from Georgetown University Law Center in Washington
September 2001. Mr. Garcia de Quevedo began his
D.C., and a Master’s degree in Business Administration
professional career in 1969 with Grupo Mexico. He was
from Instituto de Empresa in Madrid, Spain.
President of Grupo Ferroviario Mexicano, S.A. de C.V.
and of Ferrocarril Mexicano, S.A. de C.V. from December
LUIS MIGUEL PALOMINO BONILLA
1997 to December 1999, and Executive Vice-President
Director.
of Exploration and Development of Grupo Mexico from
Dr. Palomino has been a director of the Company since
1994 to 1997. He has been a director of Grupo Mexico
March 19, 2004 and is a special independent director
since April 2002. He was also Vice President of Grupo
nominee. Dr. Palomino has been Chairman of the board
95
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
of directors of Aventura Plaza, S.A. (commercial real
in economics and finance, acquired from extensive
estate developer and operator) since January 2008,
academic studies, including a PhD in Finance from
Manager of the Peruvian Economic Institute (economic
the Wharton School of the University of Pennsylvania
think tank) since April 2009, Partner of Profit Consultoria
in Philadelphia, Pennsylvania, his expertise, his wise
e Inversiones (a financial consulting firm) since July
counsel, and his extensive business experience gained
2007, director of the Master in Finance Program at the
from his past and current activities from serving as
University of the Pacific in Lima, Peru since July 2009,
a financial analyst, including of the mining sectors in
and a director and chairman of the audit committee of
Mexico and Peru.
the Bolsa de Valores de Lima (Lima Stock Exchange)
since March 2013. He was a member of the board of
GILBERTO PEREZALONSO CIFUENTES
directors of Access SEAF SAFI from December 2007
Director.
to April 2010. Dr. Palomino was previously Principal
Mr. Perezalonso has been a director of the Company
and Senior Consultant of Proconsulta International
since June 2002 and is a special independent director
(financial consulting) from September 2003 to June
nominee. Mr. Perezalonso was Chairman of the board
2007. Previously he was First Vice President and Chief
of directors of Volaris Compañia de Aviacion, S.A.P.I.
Economist, Latin America, for Merrill Lynch, Pierce,
de C.V. (airline) from March 2, 2011 to November
Fenner & Smith, New York (investment banking) from
2014. He was Chief Executive Officer of Corporacion
2000 to 2002. He was Chief Executive Officer, Senior
Geo, S.A. de C.V. (housing construction) from February
Country and Equity Analyst of Merrill Lynch, Peru
2006 to February 2007. Mr. Perezalonso was the
(investment banking) from 1995 to 2000. Dr. Palomino
Chief Executive Officer of Aeromexico (Aerovias de
has held various positions with banks and financial
Mexico, S.A. de C.V.) (airline company) from 2004 until
institutions as an economist, financial advisor and
December 2005. From 1998 until April 2001, he was
analyst. He has a PhD in finance from the Wharton
Executive Vice President of Administration and Finance
School of the University of Pennsylvania in Philadelphia,
of Grupo Televisa, S.A.B. (media company). From 1980
Pennsylvania and graduated from the Economics
until February 1998, Mr. Perezalonso held various
Program of the University of the Pacific in Lima, Peru.
positions with Grupo Cifra, S.A. de C.V. (department
96
stores), the most recent position being that of General
Dr. Palomino is a member of our Audit Committee and
Director of Administration and Finance. Now he is a
a special independent director nominee. He is also our
member of the advisory council of Banco Nacional de
“financial expert,” as the term is defined by the SEC.
Mexico, S.A. de C.V. (banking), the board of directors and
Dr. Palomino contributes to the Company his education
the investment committee of Afore Banamex (banking),
the board and the investment committee of Siefore Banamex No. 1
(banking), and is a member of the boards of directors of Gigante,
S.A. de C.V. (retail), Masnegocio Co. S. de R.L. de C.V. (information
technology), Intellego (technology), Telefonica Moviles Mexico, S.A.
de C.V. (wireless communication), Cruz Roja Mexicana (emergency
and medical services), Construction Company Marhnos (housing
construction), and Fomento de Investigacion y Cultura Superior,
A.C. (Foundation of the Iberoamerican University) . Mr. Perezalonso
was a director of Cablevision, S.A. de C.V., Grupo Televisa, S.A.B.
and a member of the audit committee of Grupo Televisa, S.A.B.
from March 1998 to September 2009. Mr. Perezalonso has a law
degree from the Iberoamerican University in Mexico City, Mexico
and a Master’s degree in Business Administration from the Business
Administration Graduate School for Central America (INCAE) in
Nicaragua. Mr. Perezalonso has also attended a Corporate Finance
program at Harvard University in Cambridge, Massachusetts.
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
97
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
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.
RAFAEL MAC GREGOR ANCIOLA
Director.
Mr.Mac Gregor has been a director of the Company since July
2017 and is an independent director. Mr. Mac Gregor has served
as managing Partner of RMAC Asociados (Mexican consulting firm)
since 2016. He has been an independent director of the Board
of Grupo Financiero Citibanamex (Mexican banking company),
Chairman of its Risk Committee, Chairman of Citibanamex’s
Impulsora de Fondos Committee
(Asset Management Co),
and member of Citibanamex’s Audit Committee since 2016. In
98
addition, he is an independent member of the Board of directors of
Corporación Multi Inversiones (CMI) (multi-national agro-industrial
company) since 2016. From February 1999 to July 2015, he served
as a Corporate Director of Grupo Bal (Mexican companies principally
engaged in agricultural and livestock, commercial operations,
industrial operations, and financial services businesses). From
April 1999 to 2015, he was a member of the Board of Directors
of the Mexican Stock Exchange. From 2001 to 2016, he served
as a member of the Board of the Instituto Tecnológico Autónomo
de México (ITAM) and from April 2008 to 2016, he served as a
member of the Board of Fresnillo PLC (Mexican-based mining
company). From April 1995 to July 2015, he served as President
of the Board of a Mexican Brokerage House and Valmex Leasing
Company (Mexican leasing company).
Additionally, from April 1995 to July 2015, Mr. Mac Gregor
Anciola served on the Boards of Grupo Nacional Provincial, S.A.B.
(Mexican insurance company), Grupo Palacio de Hierro, S.A.B.
(Mexican department stores), Industrias Peñoles, S.A.B. (Mexican
mining company), Crédito Afianzador, S.A. (Mexican financing
company), MineraTizapa, S.A. de C.V. (Mexican mining company),
MineraPenmont, S.A. de C.V.(Mexican mining company), Profuturo
G.N.P., S.A. de C.V., Afore, Profuturo GNP Pensiones, S.A. de
C.V. (Mexican insurance and pension holding company) and Vice
President of the MexDer (Mexican derivatives exchange). Mr. Mac
Gregor Anciola holds the recognition of the Professional Merit
Award from ITAM. Mr. Mac Gregor Anciola holds a degree in
Business Administration from the Instituto Tecnológico Autónomo
de México in Mexico City and he attended the Stanford University
Executive program in Palo Alto, California.
Mr. Mac Gregor Anciola brings to the Company more than 30 years
of experience in the financial sector. He also adds to the Board of
Directors his leadership experience and expertise attained through
his participation as a director of the Mexican Stock Exchange and
as an independent director of various other companies.
99
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
EXECUTIVE OFFICERS
GERMAN LARREA MOTA-VELASCO
Chairman of the Board of Directors
OSCAR GONZALEZ ROCHA
President and Chief Executive Officer
DANIEL MUÑIZ QUINTANILLA
Executive Vice President
RAUL JACOB RUISANCHEZ
Vice-President, Finance Treasurer and Chief
Financial Officer
EDGARD CORRALES AGUILAR
Vice-President, Exploration
JORGE LAZALDE PSIHAS
Secretary
ANDRES FERRERO G.
General Counsel
LINA VINGERHOETS VILCA
Comptroller
100
General Auditor
RAFAEL FERNANDO LÓPEZ ABAD
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 88.91 % of the stock of the Company, as of December 31, 2017.
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, Enrique Castillo
Sanchez Mejorada and Rafael Mac Gregor Anciola are our fourth, fifth and sixth
independent directors.
At its meeting on January 26, 2017 and July 20, 2017, the Board of Directors
determined that Messrs. Luis Miguel Palomino Bonilla, Gilberto Perezalonso
Cifuentes, Carlos Ruiz Sacristan, Emilio Carrillo Gamboa, Enrique Castillo Sanchez
Mejorada and Rafael Mac Gregor Anciola 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.
101
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
SPECIAL COMMITTEES OF THE BOARD
SCC’s Board of Directors has organized the following Special
Committees:
1. Executive Committee. It is comprised of five members who
substitute for the Board when sessions or decisions are required
concerning urgent matters, or matters for which the Board would
have expressly delegated its mandate.
2. Audit Committee. It is comprised of three independent Board
members who are knowledgeable in accounting and financial
matters. Its main purpose is to: (a) assist the Board in monitoring
(i) the quality and integrity of the Company’s financial statements;
(ii) the qualifications and independence of the independent
auditors; (iii) the performance of the internal audit function and
of the independent auditors; and (iv) the Company’s compliance
with legal and regulatory requirements; and (b) prepare the report
required by SEC rules.
3. Compensation Committee. It is comprised of four Board
members and its principal objective is to evaluate and establish
the remunerations of principal officers and key employees of the
Company and its subsidiaries.
4. Special Nominating Committee. It is comprised of two independents
Board members and one nominated by the Board and it has the
exclusive authority to propose and evaluate individuals who are
102
proposed as special independents directors.
5. Corporate Governance Committee. It is comprised of four Board
members and has as its primary functions to consider and make
recommendations to the Board concerning the appropriate
function and needs of the Board, to develop and recommend
to the Board corporate governance principles, to oversee
evaluation of the Board and management, and to oversee and
review compliance with the disclosure and reporting standards
of the Company that require full, fair, accurate, timely, and
understandable disclosure of material information regarding the
Company in reports and documents that it files with the SEC,
the NYSE and equivalent authorities in the countries in which the
Company operates, as well as in other public communications
that it regularly makes.
6. Administrative Committee. It is designated by the Named
Fiduciary appointed by the Board for the benefit plans as required
by the Employee Retirement Income Security Act – ERISA of the
United States. ERISA is the law that covers employee retirement
and other benefit plans. Mr. Daniel Muñiz Quintanilla is the
Board-appointed Named Fiduciary for the Company’s benefits
plans subject to US regulations, including ERISA. This Officer
appoints an Administrative Committee, which is comprised of
three management members and its purpose is to administer
and manage said plans and to oversee the performance of the
trust agents and other fiduciaries charged with investing the
plans’ funds.
103
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
ADMINISTRATION AND BOARD INCOME
Total remunerations of Board and Administration members, in relation to the
Company´s gross income is 0.06%.
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 26, 2018 at 9:00
A.M., Mexico City time.
CORPORATE OFFICES
United States
1440 East Missouri
Avenue, Suite 160
Phoenix, Az. 85014, USA
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
Caminos del Inca Avenue Nº 171
104
Chacarilla del Estanque
Santiago de Surco, Lima 33, Peru
Phone: +(511) 512-0440, Ext. 3181
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.
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.
105
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
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:
Southern Copper Corporation
USA: 1440 East Missouri Avenue, Suite 160 Phoenix, Az. 85014, USA
Phone: (602)264-1375, Fax (602) 264-1397.
MEXICO: Campos Eliseos No. 400, 11 floor, Col. Lomas de Chapultepec
Mexico D.F.
Phone +(52-55) 1103-5000, Extension 5855.
PERU: Caminos del Inca Avenue 171 (B-2), Chacarilla del Estanque, Santiago de
Surco – Lima 33 - Peru.
Phone. +(511) 512-0440, Ext. 3181.
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.
106
1Form 10-K Phone. +(511) 512-0440, extension 3442 for Spanish
MEMBERS OF THE BOARD OF DIRECTORS
German Larrea Mota-Velasco
Oscar Gonzalez Rocha
Emilio Carrillo Gamboa
Enrique Castillo Sanchez Mejorada
Alfredo Casar Perez
Xavier Garcia de Quevedo Topete
Daniel Muñiz Quintanilla
Luis Miguel Palomino Bonilla
Gilberto Perezalonso Cifuentes
Carlos Ruiz Sacristan
Rafael Mac Gregor Anciola
AUDIT COMMITTEE
Emilio Carrillo Gamboa, Chairman
Luis Miguel Palomino Bonilla
Gilberto Perezalonso Cifuentes
Enrique Castillo Sanchez Mejorada
Ite wetlands,
Moquegua, Peru.
Next page
107
7
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
108
SOUTHERN COPPER CORPORATION
CORPORATE OFFICES
UNITED STATES
1440 E. Missouri Avenue,
Suite 160, Phoenix, AZ 85014, U.S.A.
Phone: +(602) 264-1375
MEXICO
Edifi cio Parque Reforma, Campos Eliseos Nº 400.
Col. Lomas de Chapultepec, Mexico D.F.
Phone: + (52-55) 1103-5000
PERU
Caminos del Inca Avenue 171
Chacarilla del Estanque, Santiago de Surco
Lima 33 - Peru
Phone: +(511) 512-0440, Ext. 3181
Symbol: SCCO
E-mail address:
southerncopper@southernperu.com.pe