Southern Copper
Annual Report 2023

Plain-text annual report

23 Strength and determination Annual Report i n o i t a n m r e t e d d n a h t g n e r t S 3 2 0 2 T R O P E R L A U N N A southerncoppercorp.com 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 2023. SCC takes responsibility for its contents according to applicable requirements.” ANDRES FERRERO GHISLIERI RAUL JACOB RUISANCHEZ General Counsel Vice-President Finance and Chief Financial Officer CONVERSION INFORMATION: All tonnages in this annual report are metric tonnes unless otherwise noted. To convert to short tonnes, 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. 2 BUENAVISTA DEL COBRE, CANANEA, SONORA, MEXICO. Letter to ShareholdersAnnual Report 2023Letter to shareholders Production statistics Copper reserves Index 04 10 12 13 14 21 44 48 54 77 86 Human resources modernization) General information Results of operations Selected and financial data Capital investment program and exploration (expansion & Environmental, social and governance for the years ended December 31, 2023, 2022 and 2021 Commitment - Environmental affairs Description of operations and development Regarding the issuing entity Members of the board of directors 3 2 0 2 t r o p e R l a u n n A 4 Letter to Shareholders TRAIN IN SCC PORT, ILO, MOQUEGUA, PERU Letter to ShareholdersAnnual Report 2023 Despite challenges, we achieved good results in 2023. Copper production in 2023 increased 1.8% YoY to 911,014 tons. The year-end result was driven primarily by an uptick in production at our Peruvian operations (+9.5%) and was partially offset by a 2.9% reduction in production at our Mexican operations, which reflected a drop in ore grades, mineral processing, and recovery. In the second half of 2023, our Buenavista operation was impacted by a reduction in freshwater levels given that we still lack the permits we expect to receive to build a pipeline (approximately 20 km) to transport water from the wells to the operations and nearby townsites. Molybdenum production was 26,836 tons in 2023, which topped 5 the figure reported in 2022 by 2.3%. This increase was driven by higher production at all our mines, except for Toquepala mine, where grades and recoveries dropped. Mined zinc production rose 9.2% YoY due to higher production at the Charcas and Santa Barbara mines. In 2023, copper production reached 911,014 tons and net income was $2,425.2 million. Net sales in 2023 were $9,895.8 million, this is $152 million or 1.5% lower than net sales in 2022. This result was driven by higher sales volumes of copper (+2.2%) and molybdenum (+2.3%) and better prices molybdenum (+27.5%) and silver (+7.6%). This situation was partially offset by a decrease in the price of copper (LME -3.8%) and zinc (-24.1%) and by a reduction in the sales volume of silver (-4.3%) and zinc (-1.4%). Net income was $2,425.2 million, 8.1% lower than in 2022. The net income margin in 2023 was 24.5%, versus 26.3% in 2022. The operating cash cost per pound of copper, including by-product revenue credits, was $1.03 in 2023. This 25-cent increase in the cash cost (+32.6%), compared to the $0.78 reported in 2022, was mainly attributable to 17-cent per pound increase in the production cost and an 8-cent reduction in by- product revenue credits. However, we believe Southern Copper has the lowest cash cost of any copper producer. Major improvements in water recovery. Over the last four years, we have reduced water use at our operations. In 2023, we used 0.53m3 of water per milled ton of mineral versus 0.64 m3 in 2020, which translated into a 17% uptick in efficiency. 6 Improvement has been driven mainly by the Company’s initiatives to recover water from our Quebrada Honda tailings dam in Peru and by an uptick in the water volume recovered at the Buenavista del Cobre mine in Mexico. We are witnessing a highly volatile copper market. Initial estimates for 2024 called for a surplus this year. However, after some producers announced a significant reduction Letter to ShareholdersAnnual Report 2023in copper production, market expectations shifted from predictions of a surplus to concerns about potential deficits due to low available inventories. In this context, we believe copper prices should have good support through 2024. We continue to focus on developing our capital projects and controlling costs at a very competitive level. In 2023, we drove our Pilares project to full capacity and initiated ramp-up at the Buenavista zinc concentrator. For 2024, we expect that these projects, combined, will contribute 44,000 tons of copper and 54,000 tons of zinc to our production. 2024 production forecast: we expect to produce 935,900 tons of copper, or 2.7% above the production reported for 2023. We also expect to produce 117,800 tons of zinc (+79.8%), 20.7 million ounces of silver (+12.2%) and 25,500 tonnes of molybdenum, (- 4.2%). Our current capital investment program for this decade exceeds $15 billion and includes investments in the Buenavista Zinc, Pilares, El Pilar and El Arco projects in Mexico and in the Tia Maria, Los Chancas and Michiquillay projects in Peru. 7 This capital forecast includes several infrastructure investments, including key investments to bolster the competitiveness of the El Arco project. These initiatives heighten our optimism about the Company´s ability to continue delivering attractive results to our shareholders in coming years. Southern Copper has been consistently working to promote the well-being of the populations in its areas of influence. As part of these efforts, we have implemented successful social programs in education, health care and productive development to improve the quality of life in the countries in which we operate. Depending on characteristics of each zone, we also promote agricultural and livestock activities and support initiatives in manufacturing, fishing, and tourism, among others. On behalf of Southern Copper Corporation Board, we express our gratitude to all personnel for their unwavering effort and dedication; to our customers, for their repeated displays of trust and loyalty; and to you, our shareholders, for your unwavering support. GERMAN LARREA MOTA-VELASCO Chairman of the board OSCAR GONZALEZ ROCHA President and Chief Executive Officer 8 Letter to ShareholdersAnnual Report 2023999 DRILLS IN TOQUEPALA MINE, TACNA, PERU Production Statistics Southern Copper Corporation and Subsidiaries FIVE-YEAR PRODUCTION STATISTICS 2019 2020 2021 2022 2023 Mine production Mined Material (tonnes) 790,365 656,237 780,689 797,738 Copper in concentrates (thousand) 841,452 851,323 825,226 751,628 Copper SX/EW Total Copper 152,370 150,045 132,974 143,075 993,822 1,001,368 958,200 894,703 Molybdenum in concentrates 26,885 30,248 30,262 26,240 Zinc in concentrates 73,922 68,930 66,958 60,010 Silver in concentrates (thousand ounces) 20,273 21,540 18,962 18,562 Smelter/refineries production Copper Zinc Silver Toquepala Mined Material 595,173 633,801 598,569 637,489 104,977 102,440 92,672 99,893 (thousand ounces) 12,588 13,888 13,691 14,272 (thousand) 249,083 168,715 203,150 209,745 Copper in concentrates 231,673 229,116 203,624 175,055 Molybdenum in concentrates 7,277 10,019 10,642 7,681 Cuajone Mined Material (thousand) 153,911 130,047 148,302 139,916 Copper in concentrates 156,393 168,663 168,990 140,314 Molybdenum in concentrates 3,285 4,225 4,190 3,625 829,634 775,214 135,800 911,014 26,836 65,509 18,407 627,589 101,013 10,927 232,795 199,656 6,312 146,261 149,228 3,743 Smelter/refineries in Peru SX/EW Smelt concentrates Blister produced Anode produced Cathode produced 10 s c i t s i t a t S n o i t c u d o r P 26,329 26,010 25,754 26,451 1,075,513 1,210,625 1,089,193 1,241,999 - 4,163 2,601 2,045 317,519 345,955 308,562 350,006 256,647 286,271 260,173 289,728 25,253 1,292,892 1,854 362,122 289,660 Annual Report 2023 2019 2020 2021 2022 2023 Mexicana de Cobre – Caridad Mined Material (thousand) 94,578 93,373 100,412 106,251 Copper in concentrates 107,161 109,671 102,689 88,492 Molybdenum in concentrates 10,206 10,535 10,203 9,560 Buenavista Mined material (thousand) 288,882 259,860 324,860 337,727 Copper in concentrates 337,960 333,571 341,204 338,633 Smelter/Refineries in Mexico SX/EW Smelt concentrates Anode produced Cathode produced Rod produced Underground Mines - Contents in concentrates (tonnes) Zinc Lead 126,041 124,036 107,221 116,624 1,011,374 1,029,486 1,047,292 1,051,981 277,654 283,683 287,406 285,438 231,609 240,407 242,667 245,670 142,728 129,439 150,122 156,441 73,922 68,930 66,958 60,010 22,567 20,358 17,104 16,590 Copper in concentrates 8,265 10,302 8,719 Silver Gold (thousand ounces) (ounces) 6,943 7,647 7,983 6,589 8,734 7,662 9,134 6,750 6,428 124,090 87,814 11,367 322,142 328,953 110,547 966,582 263,613 218,564 154,304 65,509 18,746 9,563 6,664 6,482 11 3 2 0 2 t r o p e R l a u n n A 12 s e v r e s e R r e p p o C Copper Reserves We believe we hold the world’s largest position of copper reserves. As of December 31, 2023, our copper mineral reserves, calculated at a copper price of $3.30 per pound, totaled 97,082 million pounds of contained copper, at the following locations: Copper contained in ore reserves Mexico Peru Development projects Total Million Pounds 33,426 44,382 19,274 97,082 For more information about ore reserves refer to “SUMMARY DISCLOSURE OF MINERAL RESERVES”, on page 41 of our 2023 Form 10-K. Annual Report 2023 Five-year Selected Financial and Statistical Data Southern Copper Corporation and Subsidiaries For the years ended December 31 (in millions, except per share amounts, employee data and stock and financial ratios) 2019 2020 2021 2022 2023 Consolidated Statement of Earnings Net sales Operating costs and expenses Operating income Net income attributable to Non-controlling interest $ 7,285.6 $ 7,984.9 $10,934.1 $10,047.9 4,532.6 2,753.0 4,864.2 3,120.7 4,869.0 5,612.1 6,065.1 4,435.8 6.1 7.4 14.1 9.5 Net earnings attributable to SCC $ 1,485.8 $ 1,570.4 $ 3,397.1 $ 2,638.5 Per share amount: Earnings basic and diluted $ 1.92 $2.03 $ 4.39 $ 3.41 Dividends paid $ 1.60 $1.50 $ 3.20 $3.50 Consolidated Balance Sheet Cash and cash equivalents $ 1,925.1 $ 2,183.6 $ 3,002.0 $ 2,069.7 Total assets Total debt Total equity 16,407.4 16,946.5 18,297.6 17,277.4 6,541.0 6,544.2 6,247.9 6,251.2 $ 6,858.2 $ 7,276.0 $ 8,207.8 $ 8,146.9 Consolidated Statement of Cash Flows Cash provided by operating activities $ 1,911.9 $ 2,783.6 $ 4,292.4 $ 2,802.5 Dividends paid Capital investments Depreciation, amortization and depletion $ 764.4 $ 775.6 $806.0 1,236.9 1,159.6 2,473.8 2,705.8 707.5 592.2 892.3 948.5 796.3 Capital Stock Common shares outstanding – basic and diluted (in thousands) NYSE price – high NYSE price – low Book value per share P/E ratio Financial Ratios 773,059 773,073 773,087 773,098 $ 43.19 $ 65.82 $ 81.53 $ 78.17 $ 23.21 $ 23.53 $ 56.14 $ 42.81 8.82 22.10 9.35 32.06 10.54 14.04 10.46 17.69 Current assets to current liabilities 2.83 3.50 2.73 4.20 Net debt as % of Net capitalization (1) 41.8% 35.2% 27.1% 32.80% Employees (at year end) 14,301 13,777 14,462 15,018 $ 9,895.8 5,703.5 4,192.3 9.5 $ 2,425.2 $ 3.14 $ 4.00 $ 1,151.5 16,725.3 6,254.6 $ 7,481.2 $ 3,573.1 3,092.4 1,008.6 $ 833.6 773,110 $ 88.40 $ 60.87 9.60 27.44 3.19 37.6% 15,810 13 (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. 3 2 0 2 t r o p e R l a u n n A 14 n o i i t a z n r e d o M d n a n o s n a p x E i Capital Expenditures and Exploration Program (Expansion and modernization) Capital investments were $1,008.6 million for 2023, up 6.3% YoY to represent 41.2% of net income at year-end. Our program to develop the our Company’s full production is underway. We are currently developing a new organic growth plan whose goal is to increase our copper volume production to 1.3 million tonnes by the end of this decade. For 2024, the Board of Directors approved a capital investment program of $1,103.7 million. In addition to our ongoing capital maintenance and replacement spending. In general, the capital investments and projects described below are intended to increase production, decrease costs or address social and environmental commitments. Our principal capital programs include the following: MEXICAN PROJECTS: Buenavista Zinc - Sonora : This project is located within the Buenavista deposit, where we have built a new concentrator plant. This facility has a production capacity of 100,000 tonnes of zinc and 20,000 tonnes of copper per year. When operating, the concentrator will Annual Report 2023 15 1515 400 TONS TRUCKS IN CUAJONE MINE, MOQUEGUA, PERU CONCENTRATOR II PLANT, TOQUEPALA MINE, TACNA, PERU double the Company’s zinc production capacity and will provide more than 2,000 jobs on the operating front. Project update: The capital budget for the project is $439 million, most of which has already been invested. Progress is 99%; we have initiated the commissioning process. The ramping up of the plant began in the first quarter of 2024 after technical adjustments to the concentrator. We expect to produce 54,500 tonnes of zinc and 11,900 tonnes of copper in 2024 and an average of 90,200 tonnes of zinc and 20,700 of copper per year in the next five years. Pilares - Sonora: Located six kilometers from La Caridad, this is currently an open-pit mine operation with an annual production capacity of 35,000 tonnes of copper in concentrate. This project will significantly improve the overall mineral ore grade (considering the 0.78% expected from Pilares with 0.29% from La Caridad). Project update: The budget for Pilares is $176 million, of which $145 million has been invested. Pilares is fully integrated in our operations and is delivering copper ore to the La Caridad concentrator according to plans. Consequently, this will be the last time that we report on Pilares as a project. 16 n o i i t a z n r e d o M d n a n o s n a p x E i Annual Report 2023 El Pilar - Sonora: This low-capital intensity copper greenfield project is strategically located in Sonora, Mexico, approximately 45 kilometers from our Buenavista mine. Its copper oxide mineralization contains estimated proven and probable reserves of 317 million tonnes of ore with an average copper grade of 0.249%. We anticipate that El Pilar will operate as a conventional open-pit mine with an annual production capacity of 36,000 tonnes of copper cathodes. This operation will use highly cost efficient and environmentally friendly SX-EW technology. The budget for El Pilar is $310 million. Project update: The results from experimental pads in the leaching process have confirmed adequate levels of copper recovery and we are evaluating different options to drive the optimization. The basic engineering study has been completed and the Company is engaging in project development and onsite environmental activities. Project engineering is being developed by an external engineering and technology company. Mine life is estimated at 13 years. PERUVIAN PROJECTS Quebrada Honda dam expansion – Tacna: 17 This project will expand the main and lateral dams in Quebrada Honda and will also relocate and repower some facilities, primarily to accommodate dam expansion and implement water recovery facilities. By December 31, 2023, drainage was complete; eolic material had been removed from the Southern Copper employs more than 15,000 direct workers and 60,000 indirect. main and lateral dam; and complementary operational work had culminated. We also installed two cyclone nests for the main dam, which are currently operating. Additionally, purchases are pending for equipment for tailings hauling. We intend to build administrative facilities down the line. This project has a total budget of $165.0 million, of which we have invested $152.3 million as of December 31, 2023. Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards to produce 120,000 tonnes of SX- EW copper cathodes per year. The estimated capital budget for the project is $1.4 billion. The Company has been consistently working to promote the welfare of the population of the Islay province. As part of these efforts, we have implemented successful social programs in education, healthcare and productive development to improve the quality-of-life in the region. We have also promoted agricultural and livestock activities in the Tambo valley and supported growth in manufacturing, fishing and tourism in Islay. We reiterate our view that the initiation of construction activities at Tia Maria will generate significant economic opportunities for the Islay province and the Arequipa region. Given the current Peruvian economic situation, it is crucial to move ahead on projects that will stimulate a sustainable growth cycle. We expect to begin the construction phase of the project in the near future. We will make it a priority to hire local labor to fill the 9,000 jobs that we expect to generate during Tia Maria’s construction. Additionally, from day one of our operations, we will generate significant contributions to revenues in the Arequipa region. Potential projects: We have a number of other projects that we may develop in the future. We continuously evaluate new projects based on our long-term corporate objectives, strategic and operating fit, expected return on investment, required investment, 18 n o i i t a z n r e d o M d n a n o s n a p x E i Annual Report 2023 estimated production, estimated cash flow profile, social and environmental considerations, among other factors. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions. These projects are: In Mexico: El Arco - Baja California: This is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of over 1,230 million tonnes with an average ore grade of 0.40% and 141 million tonnes of leach material with an average ore grade of 0.27%. In Peru: Los Chancas—Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit. Current estimates of indicated copper mineral resources are 98 million tonnes of oxides with a copper content of 0.45% and 52 million tonnes of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open- pit mine with a combined operation of concentrator and SX-EW processes that will produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually. The estimated capital investment is $2,600 million and the project is expected to be in operation in 2030. Michiquillay Project—Cajamarca: In June 2018, Southern Copper signed a contract for the acquisition of the Michiquillay project in Cajamarca, Peru. Michiquillay is a world class mining project with inferred 19 mineral resources of 2,288 million tonnes with an estimated copper grade of 0.43%. When developed, we expect Michiquillay to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) for an initial mine life of more than 25 years and at a competitive cash-cost. We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032. 3 2 0 2 t r o p e R l a u n n A 20 THICKENERS OF CUAJONE CONCENTRATOR, MOQUEGUA, PERU Letter to ShareholdersAnnual Report 2023 Environmental, Social and Governance (“ESG”) Responsible production is a fundamental axis of our sustainable development strategy, which is made up of specific goals and objectives in areas such as water management, climate change and mining waste, human talent, safety and health at work, labor relations, development community, among others. The Company has also updated a series of corporate policies related to sustainability, which are publicly disclosed on Grupo Mexico’s website: https://www.gmexico.com/en/Pages/Politicsds.aspx. These policies are applicable to SCC and its subsidiaries. These policies formalize our vision, commitments and objectives to promote sustainable development and generate shared value for our stakeholders. For more information about our disclosure regarding Human Capital Resources, please see the section included in Part I, Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2023. In 2023, we continued to make progress in our ESG (Environmental, Social and Governance) performance by adopting best practices. The results registered by S&P Global in its Corporate Sustainability Assessment (CSA) indicate that Southern Copper Corporation had achieved a place among the top 10% of performers in the mining sector with a rating that exceeded the industry average by 100%. These results reflect our ongoing commitment to improving our sustainability practices and maintaining the Company’s inclusion in the Dow Jones Sustainability Index (DJSI) for the Latin American region. This year marks our fifth consecutive year in the DJSI. In 2023, SCC achieved some of the highest scores in the sector for key CSA indicators, including transparency and disclosure, occupational safety and health, operations closure, and human capital development. We obtained a score of 90 out of 100 on CSA’s climate governance index. This attests to the progress the Company has made in this area. Additionally, we achieved a score of 100 in the Task Force on Climate-Related Disclosures (TCDF) category, which focuses on management and disclosure of financial risks and opportunities related to climate 21 change. Additionally, the investor-led Climate Action 100+ initiative recognized our efforts to develop an emissions reduction roadmap and awarded us a full compliance rating in the Task Force on Climate-Related Financial Disclosures (TCFD) category. Furthermore, the rating agency Sustainalytics reduced the Company’s risk by two levels between 2020 and 2023. Regarding the Climate Disclosure Project (CDP), we maintained a B score for the “Climate change” and “Water security” questionnaires. At the behest of our investors, we expanded our responses to include the “Forests” questionnaire. As of the date of publication of this report, the score was yet to be available. The implementation and promotion of best practices has helped SCC secure and maintain a place on the S&P/BVL Peru General ESG Sustainability Index of the Stock Exchange of Lima. Human Rights At SCC we are committed to enforcing the United Nations Guiding Principles on Business and Human Rights. We have a series of policies and procedures that serve as a guide to all employees and suppliers: General Human Rights Policy; Policy of Respect for the Rights of Indigenous Peoples and Communities; Diversity, Inclusion and Non- Discrimination, No Workplace or Sexual Harassment Policy; and the Code of Conduct for Suppliers, Contractors and Relevant Business Partners, which includes several sections related to human rights. The company utilizes a due diligence process to monitor human rights to identify, prevent, mitigate or remediate adverse impacts on the human rights of communities. In the Mining and Infrastructure divisions, this process has three main components: 1. Participatory Social Diagnosis to allow the communities to voice their concerns regarding human rights, 2. Social Management Plans that define actions to address those concerns, and 3. Community Care Service (SAC), a tool that was designed with guidance from the United Nations High Commissioner for Human Rights (Mexico Office); communities can use this instrument to immediately communicate their concerns to the Company. The Company also has a due diligence process in place to protect the human rights of employees (both the Company and contractors). Work environment surveys, the 22 & l i a c o S , l a t n e m n o r i v n E e c n a n r e v o G Annual Report 2023 Complaint Line and supplier due diligence are the tools the company uses to comply with the commitments included in the General Human Rights Policy. Currently, we are implementing a Diversity and Inclusion Strategic Plan, which focuses primarily on training; review of contracting processes; and physical changes in work areas. Diversity, Equity and Inclusion (DEI) Our vision of DEI is to ensure that our people always feel included, welcomed and valued for their personal and professional contributions. This vision is based on our core values of respect, honesty and responsibility. In keeping with our Code of Conduct and Human Rights Policy, our goal is to (i) build an organizational culture of total equality and well-being, focusing on diversity, inclusion and non- discrimination, (ii) increase the sensitivity, knowledge and skills of our leaders and employees to build diverse and inclusive teams and promote a culture of respect, and (iii) extend this culture to the communities in which we operate. Based on the results of a DEI survey in Mexico and Peru, we aligned our diversity and inclusion 2020-2023 Strategic Plan with five strategic initiatives: 1. Awareness campaigns, training and communication on diversity, inclusion and non- discrimination. 2. Incorporate a gender equality and diversity approach into our human resources policies and procedures (focused both on hiring and retention). 3. Physical modifications at our operations for the inclusion of women. 4. Promote diversity and equal opportunities in our neighbor communities. 5. Define specific processes on awareness, prevention and handling potential incidents of 23 sexual and/or workplace harassment. In 2022, we disclosed our Policy on Diversity, Inclusion, Non-Discrimination, and Zero Tolerance for Workplace or Sexual Harassment for Grupo Mexico and the Mining Division. The latter describes the reporting mechanisms available in Mexico, Peru and the United States, and the protection offered to whistleblowers. In 2023, we provided training about diversity and inclusion 3 2 0 2 t r o p e R l a u n n A 24 IMAGING SERVICE ON BOARD DR. VAGÓN Letter to ShareholdersAnnual Report 2023 to more than 5,700 employees. Our goal is to increase women’s participation in the organization by 2% a year. We grew our female workforce from 1,090 to 1,221, which represents an increase of 12% in our female headcount year-over-year. We also increased the number of females who hold Leadership positions by 12%. This year, 34% of our female workforce holds a STEM position (Science, Technology, Engineering, Mathematics). We now have a better understanding of our diversity distribution, which helps us design efforts for each group and advance towards inclusion. Code of Ethics We certify our employees in our Code of Ethics yearly. Every employee, including new hires, signs and commits to adhering to an agreement. The Code of Ethics is the tool we use to infom and guide employees regarding our expectations for legal, professional and ethical conduct in both in our business dealings and interpersonal relationships. Community Outreach We have implemented several sustainable development policies designed to integrate the Company’s operations with the local communities in our areas of influence. Some of the relevant policies include: the General Policy for Sustainable Development; a Community Development Policy; a General Policy of Respect for the Rights of Indigenous Peoples and Communities, and a Human Rights Policy, which can be consulted on the Grupo Mexico website and apply in their entirety at the Southern Copper Corporation level. 25 These policies focus on creating permanent and positive relationships to generate optimal social conditions and promote sustainable development in the areas of influence. We continue to invest signficantly in community programs. For additional information about our community programs, refer to Corporate Social Responsibility in Note 13 “Commitments and contingencies” to the consolidated financial statements, in our 2023 Form 10-K. In 2023, SCC was recognized by the state agency ProInversion for a Drinking Water and Rural Sanitation Program in Yacango town, Torata district. This project benefits 137 families through an investment of $2.8 million. Similarly, in Mexico, we have invested in water distribution improvements in Nacozari and Cananea to benefit more than 53,800 residents. Additionally, Youth Orchestras promoted by SCC were recognized by Mexican Polymetallic Seminar. These orchestras support 1,646 students in Mexico and Peru. SCC, with the support of the State Institute of Culture, held the first exhibition of work from its Itinerant Documentary Workshops at the Cineteca in the State in Sonora, Mexico. At this event, 17 original short films, which were produced by some of the 747 workshop participants, were on show. 26 h c a e r t u O y t i n u m m o C Annual Report 2023 Community Development Model SCC seeks to improve the quality of life in the communities around its operations by engaging in responsible management. SCC has developed a model where people are agents of their own development. Our Community Development Model approaches developing relationships with communities through three specific components: Good Neigbors Ensuring that the operations coexist in a positive and healthy manner in the places where we operate. Economic Development Sharing the wealth generated by the operations with the community by creating or regenerating the social fabric and strengthening the same to consequently increase economic value. Human Development Strengthen the capacities the members of the communities in which we operate; these individuals are the main drivers of development at the personal, family and environmental levels. Good Neigbors We seek to generate a positive and healthy coexistence with our neighbors, through close, open and constant communication channels with the communities. Economic Development Through training and skill-building programs, as well as investments in infrastructure, we contribute to strengthening the productive and economic 27 capacities of communities. Human Development To generate trust relationships and co-responsibility with communities, our Casa Grande model rolls out programs at community centers; these efforts focus on education, health, culture and the environment. CUAJONE MINE, MOQUEGUA, PERU This model is known as “Casa Grande”, and it has been implemented through the following tools: • 28 Community Development Centers (13 in Mexico and, 15 in Peru).- Open Houses for communities that offer courses and workshops to promote development through programs and projects that focus on education, health, culture and environmental protection. • Participatory Diagnostics. - We respect the voice of the community and work with local populations to conduct community diagnoses to identify needs and expectations and prioritize work through the Casa Nuestra model. • Community Committees.- Led by volunteers from the community and Company employees, who collaborate to assess proposals for sustainable projects. • Seed Capital.- AWe call on communities to present their initiatives. SCC’s primary axes are education and the environment, which are complemented by initiatives relative to health, safety and productivity.. l 28 e d o M t l n e m p o e v e D y t i n u m m o C Annual Report 2023 Children and young people are our priority, and we strive to ensure a better future for new generations. Community projects are assessed by committees that are comprised of both SCC employees and local personalities and the focus is on promoting dialogue and citizen participation. • Productive Projects.- Projects that transform community lives by generating productive skills. • Our team of experts uses this model to materialize the Company’s initiatives with the participation of SCC volunteers and the community. Meetings are held at ommunity centers to generate shared value. • SCC’s social team and volunteers from neighboring communities, an important number of projects were developed. In 2023, we conducted 4,977 activities, 258 programs and projects with 209 community and corporate volunteers. Through our Seed Capital and productive projects, we helped create development generators and promoted the participation of proactive leaders who work to enhance the well- being of their communities. Education and Entrepreneurship Another way of contributing to people’s development is by providing training and education opportunities to children and young people in neighboring communities at the elementary, secondary, vocational or university levels. At our mining operations in Mexico and Peru, we contribute to community education through 11 schools that are sponsored by the Company and which offer scholarships to employees and their families for different levels of study. These company-sponsored schools are home to 29 3,418 students from the preschool to high school levels. Most students are children of employees or community members. In addition, we have complemented school subjects with programs for students and parents. As part of our ongoing commitment, the company is actively expanding educational infrastructure in Peru to benefit the community under the law of Social Investments for Taxes (Obras por Impuestos). This effort includes the creation of five high performance schools (COAR) for 1,500 students, to strengthen their capacities as outstanding students in the public sector. Two schools are currently under construction, in the regions of Moquegua and Tacna. SCC is the main private investor in educational infrastructure in Peru. In Mexico, we renovated two community centers (called Casa Grande) in Santa Barbara, Chihuahua and Charcas, San Luis Potosi. These facilities will serve an additional 21,000 people, who will use these spaces for learning and network. Both centers are equipped with a library, recreational area, audiovisual room, computer centers, spaces for physical activities, areas for temporary exhibitions and green spaces. Infrastructure and Services In 2023, SCC trained 2,087 people from our communities: 833 for employment, 1,145 in regional vocational and productive skills, and 109 from local companies to support small and medium-sized mining suppliers. Additionally, SCC increased 97% social infrastructure in year-over-year. In Mexico, $35.9 million was invested to improve water infrastructure in the Cananea and Nacozari communities. In Peru, $45.7 million was invested in social infrastructure via a wastewater treatment plant (WWTP) in Ilo. 30 i s e c v r e S d n a e r u t c u r t s a r f n I Annual Report 2023 Social Investment In 2023, SCC invested $99.9 million in social development programs related to education, health, productive projects, infrastructure and services. Investiment and Social Expenses $ (millions) Community development programs, social linking and productive projects Operating expenses in schools SCC Operating expenses in camps SCC Infrastructure and equipment in neighboring communities Infrastructure in schools SCC Infrastructure in camps SCC Donations Total 10.1 7.9 19.4 58.8 - - 3.7 99,9 Southern Copper Corporation’s business model is focused on continuously improving the lives of the residents of the communities in which we operate by encouraging them to participate in efforts to enhance society’s wellbeing by identifying local leaders who operate as agents for development. Our Environmental Commitment Southern Copper’s mining operations are aligned with the best practices in the sector to ensure that our environmental impacts are minimal and preserve the 31 3 2 0 2 t r o p e R l a u n n A BUENAVISTA DEL COBRE MINE, SONORA, MEXICO environment. We operate in alignment with our environmental management system to: 1. Plan, design, build and operate our facilities with a preventive approach throughout their life cycle. 2. Reduce the risks and damage that our activities may imply for the environment. 3. Improve our environmental performance by going beyond environmental compliance. 4. Reduce our carbon footprint and contribute to an environment resilient to climate change. 5. Conserve water by using efficient processes during production while contributing to ensuring that water is available in the basins near our operating areas. 6. Promote the efficient use of energy. 7. Contribute to the conservation of biodiversity and the environment, which generates ecosystems with a positive 32 impact. t n e m t i m m o C l a t n e m n o r i v n E r u O 8. Add value to its customers, suppliers, society and the environment through all of our activities. These lines of action, which entailed an investment of US$290.7 million in 2023, were rolled out within the framework of the Annual Report 2023 international and local certifications that our operating units have in the two countries where we are present. In 2023, all of SCC’s systems were certified ISO 14001:2015 certification for environmental management systems, which attests to both our employees’ commitment and the effectiveness of the transversal application of environmental practices. Additionally, we continue to advance in processes to certify responsible mining production. We received The Copper Mark, The Zinc Mark and The Molybdenum Mark seals in the La Caridad mine, the Sonora Metallurgical Complex and the San Luis Potosi Zinc Refinery. Additionally, SCC began the process to certificate Buenavista del Cobre mine in Sonora and our three mining units in Peru (Cuajone, Toquepala and Ilo). Climate Change SCC recognizes the importance and urgency of addressing climate change and is committed to: the goals of the Paris Agreement on climate change; conserving the environment; minimizing environmental footprint of our operations; and efficiently managing risks and opportunities related climate change. We 33 recognize climate change is likely to impact our strategy in several ways, and we aim align with global business trends that increasingly demand products with lower carbon footprints. Our priority is to responsibly improve use of natural resources while complying with legal standards for prevention, mitigation, control and remediation of environmental impacts. The Company is committed to continually improving its management of the aforementioned issues, which is why it has initiated a multi- year process to align its disclosures on climate change with TCFD recommendations. As a result, beginning in 2020, Grupo Mexico’s Sustainable Development Report included sections on climate- related risks and opportunities, and more detailed information about new short, medium and long term Scope 1 and 2 climate targets, strategy and governance mechanisms, as well as new emissions and energy metrics informed by SASB standards. In our 2023 Sustainability Development Report, we will include Scope 3 targets and preliminary capital allocation figures on decarbonization projects. The report can be accessed at https://www.gmexico.com/ en/Pages/development.aspx. We are referring our investors to Grupo Mexico’s internet site for details on the aforementioned initiatives for informative purposes only. We do not intend for this internet link to be an active link or to otherwise incorporate the contents of the website into this Report on Form 10-K. Additionally, since 2019, SCC has been participating in the S&P Global CSA evaluation, where we obtained a score of 90 out of 100 in the climate governance index. This attests to the progress that the Company has made in this area. Additionally, we achieved a score of 100 in Task Force on Climate-Related Disclosure (TCDF) category, 34 e g n a h C e t a m i l C Annual Report 2023 In 2023, the company produced the most copper in Mexico and Peru. which focuses on managing and disclosing financial risks and on identifying and treating opportunities related to climate change. The investor-led initiative, Climate Action 100+, awarded us a full compliance rating in the TCFD category in recognition of our efforts to create a roadmap for emission reduction. Since 2016, SCC has participated in CDP’s annual evaluation on Climate Change (previously known as Carbon Disclosure Project). In 2023, Grupo Mexico’s achieved a “B” rating, the third best on evaluation scale in both questionnaires on “climate change” and “water security.” Progress in managing these issues has positioned SCC above the average scores registered for the mining sector and the North American region: • Provide products and services that support transition to low carbon economies • Reduce carbon footprint of the organization • Increase the resilience of our operations by addressing potential climate change effects in surrounding communities • Align SCC with international best managing practices. To reduce its carbon footprint, SCC is betting on energy diversification by focusing on greater reliance on clean and renewable energy supplies. Our Mexican operations have mitigated a portion of their 35 indirect greenhouse gas emissions by consuming clean energy supplied by SCC subsidiaries, which generate electricity from high- efficiency combined cycle plants and a wind farm. In Peru, 100% of the electricity we consumed in 2023 was supplied by renewable energy sources through Clean Energy Certificates. In addition to generating and consuming energy from renewable sources and cleaner fuels, we also implement best practices to enhance energy efficiency at our operations. These efforts entail improvements, redesign, conversion and adaptation of equipment; rational use of resources; and training for personnel to bolster operating performance. For example, in Sonora, we take advantage of smelter gases in the heat recovery boiler to feed energy cogeneration. Climate-related transition risks: SCC recognizes that climate change has the potential to generate transition/adaptation risks for the Company associated with, for instance, technological and other operational changes; changing market trends; or credit risks. Based on its assessment, SCC does not believe at this time that said risks have had or will have a material impact on its business, financial condition or results of operation. The impacts of climate change policy and regulatory changes in Mexico and Peru are described below. Mexican Operations Several taxes are applicable to SCC’s mining operations in Mexico. These taxes range from $2.5/tCO2 to $12.5/tCO2 approximately. At the federal level, there is a tax on fuel imports, while at the state level, taxes for this concept apply in the States of Baja California, San Luis Potosi and Zacatecas. Additionally, there is an emissions trading scheme (ETS) that completed its pilot phase in 2022 and is officially operational. Currently, requirements associated with this scheme are applicable only to the Metallurgical Complex and the Lime Plant, 36 e g n a h C e t a m i l C Annual Report 2023 3737 COMBINED CYCLE PLANT, SONORA, MEXICO both located in the state of Sonora, which generate annual levels of GHG emissions that surpass the threshold of 100,000 tCO2 per year contemplated in scheme. These business units must report and verify their emissions once a year, at average costs less than $6,000 USD per unit. SCC units located in Mexico that emit more than 25,000 tons of CO2 equivalent per year (all our units except the Guaymas Terminal and the Taxco underground mine) must report their emissions to the National Emissions Registry (RENE) each year and verify emissions reported every three years. Our total annual compliance costs related to climate change regulations in Mexico were less than $30,000 for each of the three years ended December 31, 2023; this amount had no material impact on the Company. Peruvian Operations On April 17, 2018, the Peruvian government enacted Law No. 30754, which establishes a Climate Change Framework. This law has declared that promoting public and private investments to manage climate change constitutes a matter of national interest. The law proposes creating an institutional framework to address climate change in Peru and outlines new measures, with a particular focus on climate change mitigation. The aforementioned measures include provisions related to increasing carbon capture and the use of carbon sinks; afforestation and reforestation practices; changes in land use; and sustainable transportation systems, solid waste management, and energy systems. This is the first climate change framework law in Latin America that incorporates obligations of the Paris Agreement. The Regulation of this law was enacted by Supreme Decree 013-2019, 38 which was published on December 31, 2019, and is applicable to all Peruvian institutions and organizations. Peruvian regulations are expected to be extended to non-governmental entities in the future; however, for the Company’s operations in Peru, there are no mechanisms in place for carbon pricing. e g n a h C e t a m i l C At SCC, we recognize that climate change is impacting market trends, which reflect a growing demand for goods with lower carbon footprints or for materials that help Annual Report 2023 reduce emissions at their point of origination. Large copper consumers will more than likely increasingly seek to acquire low or zero-emission products to achieve their own GHG emission reduction targets. Adapting to this trend inadequately or with insufficient speed might result in reputational risks or loss of market opportunities for SCC. Based on these assessments, the Company does not believe that these impacts have been or are material at this time. The Company will continue evaluating how climate-related risks could affect its financial interests and will define appropriate mitigation and adaptation responses as necessary. The Company will also continue to assess how variations in global and national GHG emissions may increase the regulatory burden as well as demand for low-carbon or carbon-free products from customers, investors, and stakeholders in general. Recently, investors have been asking the Company to disclose its GHG emission reduction goals, in alignment with the Paris Agreement to keep the increase in global to below 2 degrees Celsius. The Company is currently defining these targets and aims to publicly disclose the same in forthcoming reporting. Climate - Related Opportunities In accordance with the goals of the Paris Agreement on climate change, global GHG emissions reductions must be achieved to contain global warming below 1.5 degrees Celsius above the pre-industrial average temperature. Copper is a critical component for many technologies required for transition to low-carbon economies, including wind and solar photovoltaic power generation, electric vehicles, power grids, and more. Consequently, the demand for copper is expected to increase significantly, which could boost copper prices and positively impact the Company’s income. Additionally, we believe that the cost of renewable electricity generation will move closer to competing with the costs of conventional power plants. This will offer opportunities to reduce both operating costs and GHG emissions. As one of the world’s largest copper producers, we believe that the implications of climate change could benefit SCC’s reputation as stakeholders increasingly recognize 39 the vital role that copper plays in helping societies migrate to low carbon economies. However, we realize that this is conditional upon the Company’s commitment to helping achieve the objectives of the Paris Agreement and its ability to demonstrate clear and sustained progress in decarbonizing its operations, as required by this agreement. With these actions, and others, SCC confirms the commitment to reduce its carbon footprint, address its implications and perform as a sustainable company, both nationally and internationally, improving its competitiveness and contributing to the transition towards low-carbon economies. In 2024, we will continue to identify more financial impacts related to the climate risks and opportunities our company will face in the future. Biodiversity Southern Copper Corporation implements actions to generate positive impacts, reaffirming its commitment to the environment and biodiversity. To comply with this commitment, which is detailed in the Company’s Environmental Policy, we have developed action plans for biodiversity management that are aligned with the Good Practices for Mining guide and Biodiversity published by the International Council of Mining and Metals (ICMM). These plans improve the Company’s ability to implement effective prevention and mitigation measures and contribute to the preservation and improvement of the environment in both operating areas and surrounding communities. We are the company with the largest productive capacity of trees in the mining industry in Mexico. In our operating units we have 7 nurseries and greenhouses that in 2023 produced 5.6 million plants, part of which was destined for reforestation and rehabilitation of ecosystems, including protected natural areas near our operations. 40 y t i s r e v d o B i i Annual Report 2023As part of our effort to conserve biodiversity, we have a 174-hectare Environmental Management Unit (UMA), which has been conditioned to replicate -through enclosures- threatened and endangered species such as the Mexican Gray Wolf and Gould’s Turkey among others, that are part of this important program. SCC’s UMA in Mexico is located in a strategic area to boost Mexican Gray Wolf reproduction. Since 2013, SCC has been part of the US-Mexico Binational Program to Recover the Mexican Gray Wolf. To date, it has housed 62 specimens of the Mexican wolf and has delivered 23 cubs in its facilities. In a coordinated effort with Mexican and United States authorities through the Binational Mexican Gray Wolf Recovery Program, 27 specimens have been reintroduced to sites where this species originally lived. In March 2023, the Environmental Management Unit in Buenavista del Cobre obtained certification from the Wildlife Habitat Council, for our contribution to preventing extinction of Mexican gray wolf. Thanks to our actions, this species, which was once extinct in the wild, now has populations in its natural habitat in Mexico. We will continue working society hand and the authorities for common good in the regions where we operate. Our remediation program in Ite Bay, in Tacna, with an area of 1,600 hectares, has resulted in the largest wetland with the greatest diversity of waterfowl on the country’s coast, and has also become a focus of tourist attraction that favors economic development. Water care Water constitutes the most important input for our mining operations, which is why we have developed projects to guarantee the sustainability of this resource. 41 These initiatives focus on ensuring efficient water use; promoting water reuse; and reusing water discarded by third parties. At some of our units, such as San Luis Potosi, we use specially treated municipal wastewater to ensure that more fresh water is available for the local population. Efficient wateruse and savings programs rely on pumping systems to recover water from tailings and thickeners and use closed circuits to recirculate the total volume of processed water. In 2023, more than 74% of total water consumption at our mining operations utilized recovered water, which attests to our good management. 42 e r a C r e t a W Annual Report 2023 4343 TRUCK IN CUAJONE MINE, MOQUEGUA, PERU 3 2 0 2 t r o p e R l a u n n A 44 s n o i t a r e p O f o s t l u s e R Results of Operations Years ended December 31, 2021, 2022 and 2023. Our net income attributable to SCC in 2023 was $2,425.2, compared to 2022 was $2,638.5 million and $3,397.1 million in 2021. SCC’s net income attributable to SCC decreased $213.3 million (8.08%), which was partially mitigated by an uptick in sales volumes for copper and higher prices for by-products. The Company presents its operating cash costs with and without the revenues of its by-products (molybdenum, silver, sulfuric acid, etc.). It excludes the cost of purchases of third-party metal, depreciation, amortization and depletion, exploration, provisions for employee profit sharing, other non-recurring items and royalty charges from its operating cash cost calculation. The Company’s operating cash cost per pound of copper produced, as previously defined, for the three years ended December 31, is as follows: (dollar per pound) 2021 2022 2023 Operating Cash Cost before by-product revenues 1.64 2.02 Operating Cash Cost net of by-product revenues 0.67 0.78 2.19 1.03 Annual Report 2023 As seen in the table above, our per pound cash cost before by-product revenues in 2023 was 8.4% higher when compared with 2022. This result was mainly attributable to an increase in production costs. Our cash cost per pound net of by-product revenues for 2023 was 32.6% above the figure for the same period of 2022 and was mainly attributable to an increase in the production cost of 16.2 cents per pound and a reduction of 8 cents in by-product revenue credits. Net sales: 2023-2022: Net sales in 2023 totaled $9,895.8 million, which represents a slight decrease compared to 2022 net sales of $10,047.9 million. This decrease was driven by lower copper (-3.8% - LME) and zinc (-24.1%) prices, along with a reduction in the sales volumes of silver (-4.3%) and zinc (-1.4%). This impact was partially offset by increased sales volumes for copper (+2.2%) and molybdenum (+2.3%) and by better prices for molybdenum (+27.5%) and silver (+7.6%). Net sales in 2023 were adversely affected by downward adjustments of $406.0 million after sales were provisionally priced due to decreases in metal prices. 2022-2021: Net sales in 2022 were $10,047.9 million in 2021 were $10,934.1 million, which represented a decrease of $886.2 million. This 8.1% reduction was driven primarily by a decrease in sales volume copper (-6.5%), silver (-1.9%) 45 and molybdenum (-13.4%), which was driven primarily by lower production and secondarily by a drop in prices for copper (-5.4%) and silver (-13.6%). The aforementioned was partially offset by an increase in the sales volume of zinc (+10.5%) and by a rebound in the prices of molybdenum (+20.0%) and zinc (+16.2%). Prices: The profitability of our operations is dependent on, and our financial performance is significantly affected by, the international market prices for the products we produce, and for copper, molybdenum, zinc and silver in particular. Sales prices for the Company’s metals are mainly pegged to the prices quoted on the London Metal Exchange (LME) and The New York Commodity Exchange (COMEX) or to those published in the Platt’s Metals Week for dealer oxide mean prices for molybdenum. Price/Volume Data Average metal prices Copper (per pound - LME) Copper (per pound - COMEX) Molybdenum (per pound) Zinc (per pound - LME) Silver (per ounce - COMEX) Sales Volume ((in million pounds, except silver – million ounces) Copper Molybdenum (1) Zinc Silver 2021 $ 4.23 2022 $ 4.00 $ 4.24 $ 4.01 $ 15.51 $ 18.61 $ 1.36 $ 1.58 $ 25.18 $ 21.76 2021 2,052.9 66.8 201.9 19.2 2022 1,920.4 57.9 223.0 18.8 2023 $ 3.85 $ 3.86 $ 23.73 $ 1.20 $ 23.41 2023 1,961.8 59.3 219.7 18.0 (1) The Company´s molybdenum production is sold as concentrates. Volume represents pounds of molybdenum contained in concentrates. 46 s n o i t a r e p O f o s t l u s e R Annual Report 2023 4747 SX-EW CATHODES HARVEST, TOQUEPALA MINE, TACNA, PERU 3 2 0 2 t r o p e R l a u n n A 48 i s e c n e g n i t i n o C & s e s m o r p m o C Compromises and Contingencies Environmental matters The Company has established comprehensive environmental conservation programs at its mining facilities in Peru and Mexico. The Company’s environmental programs include water recovery systems to conserve water and minimize the impact on nearby streams; reforestation programs to stabilize the surface of the tailings dams; and use of scrubbing technologies in our mines to reduce dust emissions, among others. Environmental capital investments in years 2021, 2022 and 2023, were as follows (in millions): Mexican operation Peruvian operation (*) Total 2021 2022 2023 $ 62.3 $ 52.7 $ 281.2 6.4 8.7 9.5 $ 290.7 $ 61.4 $ 290.7 Mexican operations The Company’s operations are subject to applicable Mexican federal, state and municipal environmental laws, to Mexican official standards, and to regulations for the protection of the environment, including regulations relating to water supply, water quality, air quality, noise levels and hazardous and solid waste. Annual Report 2023 The principal legislation applicable to the Company’s Mexican operations is the Federal General Law of Ecological Balance and Environmental Protection (the “General Law”), which is enforced by the Federal Bureau of Environmental Protection (“PROFEPA”). PROFEPA monitors compliance with environmental legislation and enforces Mexican environmental laws, regulations and official standards. 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 to provide 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, if it can be argued that harm may in fact be caused. Additionally, amendments to the Civil Federal Procedures Code (“CFPC”) were enacted in 2011 and established three categories of collective actions under which a group of 30 or more individuals can be considered sufficient to prove a “legitimate interest” to file civil actions for injuries arising out of alleged violations of environmental, consumer protection, financial services and antitrust laws. The group can seek restitution, economic compensation for alleged injuries or move to halt the activities that allegedly caused the injuries in question. Amendments to the CFPC may result in more litigation, with plaintiffs seeking remedies, including suspension of any activities alleged to cause harm. In 2013, the Environmental Liability Federal Law was enacted. The law establishes general guidelines for actions considered likely to cause environmental harm. If a possible determination regarding harm occurs, environmental clean-up and remedial actions sufficient to restore the environment to a pre-existing condition 49 must be taken. If restoration is not possible, compensation measures should be provided. Criminal penalties and monetary fines can be imposed under this law. In February 2019, the Supreme Court of Mexico confirmed the constitutionality of an ecological tax on extractive activities carried out in the state of Zacatecas, which taxes environmental remediation activities, emissions of certain gases into the atmosphere, emissions of substances contaminants to soil or water and the storage of waste within the territory of this state. The Company is evaluating the potential impact of this new environmental standard on its financial position. Climate change: Several taxes are applicable to the Company’s mining operations in Mexico, including federal and state fossil fuel taxes, and the requirements associated with Mexico’s emission trading scheme. These taxes range from $US9/tCO2 to $US18/ tCO2 in 2023, approximately. These regional taxes, which are in addition to a federal tax on fuel imports, are applicable in the States of Baja California, Zacatecas and San Luis Potosi. In addition, Mexico’s emission trading (ETS) currently applies to the Company, but solely through two business units, the metallurgic and lime plants in Sonora, which both generate annual GHG emissions levels above the threshold of 100,000 tCO2 per year contemplated by the scheme. Every year, these units are required to report and verify emissions with average costs of less than $6,000 per unit. Units that emit more than 25,000 tonnes CO2 equivalent per year (all our Mexican units) are required to report their emissions to the National Emissions Registry (RENE) on a yearly basis and must verify reported emissions every three years. The total expense associated with ensuring annual compliance with climate change regulations in Mexico was not material to the Company. On May 09, 2023, Mexican Congress approved several changes to the Mining Law, 50 National Waters Law, the General Law of Ecological Balance and Environmental Protection, and the General Law for the Prevention and Integral Management of Waste, all of which were effective immediately. The main changes entailed reducing mining concession terms from 50 to 30 years; new restrictions and conditions on water use; requirements to provide guarantees for closure and remediation of operations; and a requirement to contribute 5% of net earnings to indigenous communities for new projects and significant changes to exploration rules. i s e c n e g n i t i n o C & s e s m o r p m o C Annual Report 2023 We are the mining company with the largest productive capacity of trees (Mexico). These amendments to the law have been challenged and are being reviewed by the Supreme Court. The company is not expecting any negative impacts on its operations. Peruvian operations The Company’s operations are subject to applicable Peruvian environmental laws and regulations. The Peruvian government, through the Ministry of Environment (“MINAM”) conducts annual audits of the Company’s Peruvian mining and metallurgical operations. Through these environmental audits, matters relating to environmental and legal compliance, atmospheric emissions, effluent monitoring and waste management are reviewed. The Company believes that it is in material compliance with applicable Peruvian environmental laws and regulations. Peruvian law requires that companies in the mining industry provide assurances for future mine closure and remediation. In accordance with the requirements of this law, the Company’s closure plans were approved by MINEM. See Note 10 “Asset retirement obligation” for further discussion of this matter. Air Quality Standards (“AQS”): In June 2017, MINAM enacted a supreme decree which defined new AQS for daily sulfur dioxide in the air. As of December 31, 2023, the Company maintains the daily average level of µg/m3 of SO2, below the requirement of the AQS. In November 2023, MINAM enacted a new AQS for Cadmium, Arsenic and Chromium in particulate matter less than ten microns (PM10). A review of the Company´s 51 chemical monitoring results has determined that the Company´s operations will not be significantly impacted by the new standards and concentration values in place. Our results are expected to continue to fall below regulatory AQS. Soil Environmental Quality Standards (“SQS”): In 2013, the Peruvian government enacted Soil Quality Standards. In accordance with the regulatory requirements of the law, the Company prepared Soil Decontamination Plans (“SDP”) for environmentally impacted sites at each of its operation units (Toquepala, Cuajone and Ilo) with the assistance of consulting companies. The costs of these SDPs are not material, either individually or in aggregated form, for the financial statements of the Company. Climate change: On April 17, 2018, the Peruvian government enacted Law N. 30754, which promotes public and private investments in climate change management and establishes a Climate Change Framework. The law proposes creating an institutional framework to address climate change in Peru and outlines new measures for climate change mitigation, such as provisions to address an increase in carbon capture and use of carbon sinks; afforestation and reforestation practices; land use changes; sustainable systems of transportation, solid waste management, and energy systems. This climate change framework law incorporates obligations from the Paris Agreement. Supreme Decree 013-2019 published on December 31, 2019, enacted statutory regulations, which are applicable to all Peruvian institutions and agencies. It is expected that additional Peruvian regulations will be applicable to non-governmental entities. However, no carbon pricing mechanism is currently applicable to the Company’s operations in Peru. The Company believes that all its facilities in Peru and Mexico are in material compliance with environmental, mining and other applicable laws and regulations. The Company also believes that continued compliance with environmental laws of Mexico and Peru will have no material adverse effects on the Company’s business, properties, or operating results. 52 i s e c n e g n i t i n o C & s e s m o r p m o C Annual Report 2023 5353 LA CARIDAD MINE PIT, SONORA, MEXICO 3 2 0 2 t r o p e R l a u n n A General Information Information related to its constitution and inscription in the Public Registry: Southern Copper Corporation (SCC) is one of the largest integrated copper producers in the world. We produce copper, molybdenum, zinc, silver, lead and other by-products. All 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 both Peru and Mexico. We are one of the largest copper mining companies in the world. 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 produce significant 54 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. n o i t a m r o n f I l a r e n e G Annual Report 2023 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 copper, molybdenum, zinc, silver, gold and lead. Minera Mexico operates through subsidiaries that are grouped into three separate units. Mexicana de Cobre S.A. de C.V. (together with its subsidiaries, the “Mexcobre unit”) operates La Caridad, an open-pit copper mine, a copper ore concentrator, a SX/EW plant, a smelter, refinery and a rod plant. Operadora de Minas e Instalaciones Mineras S.A de C.V. (the “Buenavista unit”) operates Buenavista, formerly named Cananea, an open-pit copper mine, which is located at the site of one of the world’s largest copper ore deposits, a copper concentrator and two SX/EW plants. The Buenavista mine was operated by Mexicana de Cananea S.A. de C.V. and by Buenavista del Cobre S.A. de C.V. until December 11, 2010. From this date, Industrial Minera Mexico, S.A. de C.V. (together with its subsidiaries, the “IMMSA unit”) operated five underground mines that produce zinc, lead, copper, silver and gold, a coal mine and a zinc refinery until July 2012. Effective February 1, 2012, Minerales Metalicos del Norte S.A was merged with Industrial Minera Mexico S.A. de C.V. (IMMSA). IMMSA absorbed Minerales Metalicos del Norte S.A. We utilize modern/state-of-the-art mining and processing methods, including global positioning systems and computerized mining operations. Our operations have 55 a high level of vertical integration that allows us to manage the entire production process, from ore mining to the production of refined copper and other products, as well as most related transport and logistics functions, using our own facilities, employees and equipment. Economic Group SCC forma parte, indirectamente, de “Grupo Mexico, S.A.B. de C.V.”, quien es propietario del 100% del accionariado de Americas Mining Corporation (“AMC”). Name of the company (Several Activities) Grupo Mexico, S.A.B. de C. V. Grupo Mexico (Servicios), S.A.B. de C.V. Mining Activities Americas Mining Corporation (“AMC”) Southern Copper Corporation (SCC) Minera Mexico, S. A. de C. V. Industrial Minera Mexico, S.A. de C. V. Buenavista del Cobre, S.A. de C. V. Mexicana de Cobre, S.A. de C. V. Southern Peru Copper Corporation, Agencia en Chile Southern Peru Copper Corporation, Sucursal del Peru Compañia Minera Los Tolmos, S.A. 1 2 3 4 5 6 7 8 9 10 11 Inscription Location in the RPMV % Mexico Mexico USA USA Mexico Mexico Mexico Mexico Chile Peru Peru Yes 100 100 88.90 99.96 100 100 98.18 100 √Yes (1) 99.29 100 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 56 Common Shares owned by 3rd parties Total 687,405,997 85,704,472 88.9% 11.1% 773,110,469 100.0% (1) Include 82.69% of common shares and 16.60% of investment shares i p u o r G c m o n o c E Annual Report 2023 SOUTHERN COPPER CORPORATION Variable Income Symbol ISIN US84265V1052 US84265V1052 US84265V1052 US84265V1052 US84265V1052 US84265V1052 US84265V1052 US84265V1052 US84265V1052 US84265V1052 US84265V1052 US84265V1052 Nnemonic SCCO Year- Month 2023-01 SCCO SCCO SCCO SCCO SCCO SCCO SCCO SCCO SCCO SCCO SCCO 2023-02 2023-03 2023-04 2023-05 2023-06 2023-07 2023-08 2023-09 2023-10 2023-11 2023-12 Open 62.00 75.50 76.50 76.85 76.46 71.13 72.71 85.41 79.35 72.35 73.80 76.00 QUOTATION 2023 Average Close 75.77 73.60 76.01 76.25 65.68 73.50 87.00 81.10 75.30 72.00 71.30 85.50 Maximum 77.53 Minimum 61.52 78.49 78.00 81.65 79.00 74.44 87.11 86.49 81.10 75.30 75.54 88.00 70.53 67.00 73.01 65.00 67.00 67.99 77.62 72.18 69.80 69.26 71.20 Price 73.31 74.23 72.34 78.03 69.18 73.07 77.84 81.17 77.72 71.68 73.26 81.69 57 Description of Operations and Development Regarding the issuing entity Detail of the corporate purpose The purpose of SCC is to engage in activities that are permitted under 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 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. The Branch is registered in the Electronic Record N° 03025091 of the Juridical People of the Registry Office of Lima and Callao. 58 & s n o i t a r e p O f o n o i t p i r c s e D t n e m p o e v e D l Annual Report 2023 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. Said increase was made through a 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 aimed to increase the capital allotted to the Branch by Headquarters and registered in Peru. The capital contribution made by the owners of Labor Shares (today Investment Shares) was assigned to the Labor Shares account of the Branch for issuing new Labor Shares. Part of the money contributed 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. 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 to act as the holding company that owns all of Southern Peru Copper Corporation ‘s shares. This was executed through an exchange of shares that were formerly denominated “Labor Shares” (now, Investment Shares), which were issued by the branch in Peru; through this operation, owners of labor shares were awarded a specific number of Common Shares, which were issued by SPCC in the United States. Through this share exchange, previous owners of Labor Shares acquired 17.31% of SPCC’s 59 Capital and this company acquired ownership of 80.77% of Labor Shares (now, Investment Shares). 3 2 0 2 t r o p e R l a u n n A 60 & s n o i t a r e p O f o n o i t p i r c s e D t n e m p o e v e D l SX-EW PADS, TOQUEPALA MINE, TACNA, PERU 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. After the corporate name change, the mining activities of the Company in Peru were performed under the name of Southern Peru Limited, Peru Branch (SPL). On December 31, 1998, the merger between Southern Peru Copper Corporation and Southern Peru Limited was agreed. The first company absorbed the second and assumed all its assets and liabilities, including the Branch in Peru. This merger did not imply any change to the share percentage in the corporate capital or in the Equity Participation Account (Investment Shares), which remained unchanged. Following the merger, the corporation’s mining activities in Peru were conducted under the name of Southern Peru Copper Corporation, Peru Branch, or the abbreviated name of “Southern Peru” and/or the acronym SPCC. Change of Economic Group: In November 1999, Grupo Mexico S.A.B. de C. V., a firm incorporated pursuant to the Laws of the Republic of Mexico, acquired, in the United States, 100% of ASARCO Annual Report 2023 Incorporated, the main shareholder of Southern Peru Copper Corporation at that time. In this way, SPCC became a subsidiary of Grupo Mexico, which holds its shares through Americas Mining Corporation (AMC). Acquisition of Minera Mexico (“MM”), and other corporate changes: SCC shareholders, in a shareholder extraordinary meeting dated March 28, 2005, approved the issuance of Common Shares and required actions related to the acquisition of MM, a firm incorporated pursuant to the Laws of the Republic of Mexico. This transaction was approved by more than 90% of the stocks and circulating capital of SCC. To acquire Minera Mexico, SCC issued 67,207,640 shares in exchange for MM shares. Once the shares related to the acquisition were issued, AMC increased its share in SCC from 54.2% to approximately 75.1%. AMC Increased its Participation in SCC: In 2008 and 2009, Grupo Mexico, through its wholly owned subsidiary Americas Mining Corporation, purchased 11.8 million and 4.9 million shares of the Company’s common Stock, respectively. 61 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. The SCC share repurchase program has registered no activity since the third quarter of 2016. The NYSE closing price of SCC common shares at December 31, 2022 was $60.39 and the maximum number of shares that the Company could purchase at that price was 1.4 million shares. As a result of the repurchase of shares of SCC’s common stock, Grupo Mexico’s direct and indirect ownership was 88.9% as of December 31, 2022. Change in the Certificate of Incorporation: On March 28, 2005, following Board of Directors recommendations, SCC shareholders approved, during an extraordinary meeting, the amendments to the Articles of Incorporation Deed that changed the composition and obligations of some Board committees. Special Nominating Committee and Special Independent Directors: The changes to the Certificate of Incorporation require the Board to include a certain number of special independent directors. 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 given number of special independent directors; this number is found by multiplying the total number of directors in the Board 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 aforementioned, the total number of individuals appointed as special independent directors (not belonging to Grupo Mexico) cannot be less than two or more than six. 62 & s n o i t a r e p O f o n o i t p i r c s e D t n e m p o e v e D l Annual Report 2023 The Special Nominating Committee consists of three directors. Two of these directors (2) are Luis Miguel Palomino and Carlos Ruiz Sacristan (each is an “Initial Member” and, together with their successors, “Special Designees”) and the third is currently Xavier Garcia de Quevedo (who is appointed by the Board of Directors or the “Board Designee”. The Board Designee will be selected annually by the Board of Directors. The Special Designees will be selected annually by the members of the Board who are special independent directors or Initial Members. Only Special Independent Directors can fill vacancies on the Special Nominating Committee. Any member of the Special Nominating Committee may be removed at any time by the Board of Directors for cause. The unanimous vote of all members of the nominating committee will be necessary for the adoption of any resolution or the taking of any action. Notwithstanding the foregoing, the power of the Special Nominating Committee to nominate special independent directors is subject to the rights of the stockholders to make nominations in accordance with our by-laws. The provisions of the Amended and Restated Certificate of Incorporation, as amended, relating to Special Independent Directors may only be amended by the affirmative vote of a majority of the holders of shares of Common Stock (calculated without giving effect to any super majority voting rights) other than Grupo Mexico and its affiliates. Transactions with affiliates: The Company entered into certain transactions in the ordinary course of business with parties that are controlling shareholders or their affiliates. These transactions 63 include the lease of office space, air and railroad transportation, construction services, energy supply and other products and services related to mining and refining. The Company lends and borrows funds among affiliates for acquisitions and other corporate purposes. These financial transactions bear interest and are subject to review and approval by senior management, as all are related party transactions. It is the Company’s policy that the Audit Committee of the Board of Directors shall review all related party transactions. Article nine of the amended and reformulated Deed of Constitution of the Company is prohibited from entering or continuing a material related party transaction that has not been reviewed and approved or ratified by a Board Committee consisting of at least three members, each of whom is independent, and defines a material transaction between affiliates as a transaction or series of related transactions between Grupo Mexico or one of its affiliates (other than the Company or its subsidiaries), on the one hand, and the Company or one of its subsidiaries, as the other party, in which there is economic consideration for an aggregate total of more than $10.0 million. It is the policy of the Company (i) that no material transaction between affiliates shall be entered into or continued without the review and approval of the Audit Committee or its Subcommittee on Related Party Transactions constituted by independent directors, (ii) that any transaction process between potential related parties with aggregate total consideration between $8.0 million and $10.0 million is authorized by the Company’s General Counsel and Chief Financial Officer, and (iii) that all related party transactions, including any material transactions between affiliates, are reported to the Audit Committee of the Board of Directors or its Related Party Transactions Subcommittee. Change of corporate name and other corporate changes: On September 20, 2005, by written consent instead of an extraordinary shareholder meeting, the majority shareholder approved renaming Southern Peru Copper Corporation to Southern Copper Corporation or SCC. The change was adopted because the new corporate name more accurately reflects the Company’s operational reach outside the Republic of Peru after its acquisition of Minera Mexico, and the latter’s presence in the Republic of Chile through the acquisition of some mining exploration concessions, and its exploration activities in the Republics of Argentina and Ecuador. 64 & s n o i t a r e p O f o n o i t p i r c s e D t n e m p o e v e D l Annual Report 2023 Additionally, on the same date, the majority shareholder approved an amendment to our Articles of Incorporation to remove others’ provisions in our Articles of Incorporation related to our Class A Common Shares that were formerly in circulation, which were converted to Common Shares on May 19, 2005, and to change the number of Corporate directors from fifteen to a number that will be regularly established by a consensus reached by the majority of Board members and stipulating that the number of directors will not be less than six or more than fifteen. The amendment of our Articles of Incorporation was submitted to the Secretary of State of the State of Delaware, and came into effect on October 11, 2005. Peru Branch Name: Generally, any change in the corporate name of headquarters should comprise the corresponding name of the ancillary organizations linked to it, as is the case of the Peru Branch through which the Corporation develops its mining activities in Peru. After consulting with Peruvian lawyers, the Board of Directors, in acknowledgement of the importance of the net worth and assets of the Branch, decided it was necessary to: continue acknowledging the position of the Peruvian Branch with its local and international copper clients; preserve its proceeds, position its good name in the copper market; prevent any possible client loss; and guarantee the Branch’s revenue flow from sales, its financial and economic revenues and solvency, agreed to maintain the original corporate name of the Peru Branch, that is, Southern Peru Copper Corporation, Peru Branch, or the abbreviated name “Southern Peru” and/or the acronym SPCC. Changes to the Articles of Incorporation and By-laws On January 26, 2006, the Board approved an amendment to Southern Copper 65 Corporation’s Articles of Incorporation and by-laws: (i) to remove the provisions related to Class A Common Shares among other changes.(ii) add a new provision for advance notice to shareholders seeking to nominate directors or to propose other business at annual or special meetings of the Common Stockholders (as applicable) (iii) substitute Grupo Mexico for ASARCO Incorporated in the “Change in Control” definition in the Corporation’s by-laws (iv) and eliminate the 80% supermajority vote requirement for certain corporate actions. The modification of the Modified Certificate of Incorporation increased the capital stock from 167,207,640 shares to 320,000,000 shares. These modifications were submitted for approval of the shareholders at the shareholders annual meeting held on April 27, 2006 which was adjourned and reconvened for May 4, 2006, and later on adjourned and reconvened for May 11, 2006. At the annual meeting, on April 27, 2006, the proposal to amend the by-laws to eliminate certain extraneous provisions relating to the retired series of Class A Common Stock had an affirmative vote of 79.85% of the required votes. Given that the required vote for the approval of this proposal was 80% and because some votes still needed to be tabulated, the annual meeting for this proposal was adjourned until May 4, 2006. On May 4, 2006, at the adjourned and reconvened meeting the stockholders approved the proposal with an affirmative vote of 80.61% of the required votes. On April 27, 2006, stockholders approved (i) the amendment to the by-laws to introduce a new provision for advance notice to shareholders seeking to nominate directors or to propose other business at annual or special meetings of the Common Stockholders (as applicable); (ii) the amendment to the by-laws to substitute Grupo Mexico for ASARCO Incorporated in the “Change in Control” definition in the Corporation’s bylaws; (iii) the 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. 66 & s n o i t a r e p O f o n o i t p i r c s e D t n e m p o e v e D l Annual Report 2023 Given that the required vote for the approval of this proposal was 80% and because some votes still 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 88.9% of SCC shares. Information about plans and investment policies: See Capital Expenditures and Exploration on page 14. 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 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. Additionally, on April 18, 1995, SCC and the Peruvian Government (CONITE) signed a contract that remained in effect for 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. 67 Special Mining Tax: In September 2011, the Peruvian government enacted a new tax for the mining sector. This tax is based on operating profit and its rate varies from 2% to 8.4%. The Company provisioned $71.7 million, $56.4 million and $114.0 million in 2023, 2022 and 2021, respectively, with respect to this tax. These amounts are included as “income taxes” in the consolidated statement of income. Mining Royalty: The royalty charge is based on operating income margins with graduated rates ranging from 1% to 12% of operating profits, with a minimum royalty charge assessed at 1% of net sales. The minimum royalty charge is recorded as cost of sales and those amounts assessed at higher rates are included in the income tax provision. The Company has accrued $84.7 million, $71.4 million and $140.8 million of royalty charges in 2023, 2022 and 2021, respectively, of which $44.5, $35.8 million and $97.8 million were included in income taxes in 2022, 2021 and 2020, respectively. Social Investment for Taxes: SCC has signed agreements with Ministry of Education, regional and local governments of Tacna, Moquegua, and Arequipa, and a public university “Universidad Nacional San Agustin de Arequipa” under the law of Social Investments for Taxes (Obras por Impuestos). Once the investments are completed, the municipalities benefiting from these investments must submit a certificate of public, local or regional investment. SCC has the right to use these investment amounts as an advance payment on its income tax liability for up to 50% of the income tax levied for the prior year. Operations in Mexico La Caridad Mine “La Caridad Concentrator” began operations in 1979. The concentrator has a current capacity of 94,500 tonnes of ore per day. “Molybdenum Plant” started operations in 1982, with a production capacity of 2,000 tonnes of copper-molybdenum concentrate per day. 68 & s n o i t a r e p O f o n o i t p i r c s e D t n e m p o e v e D l Annual Report 2023 The SX EW facility has an annual design capacity of 21,900 tonnes of copper cathodes. These cut-off grades need to be reassessed as the mineral reserves stated were estimated utilizing an economic cut-off value. La Caridad Metallurgic Complex “La Caridad Smelter” started operations in July, 1986. The current installed capacity of the smelter is 1,000,000 tonnes per year, which is sufficient to treat all the concentrates of La Caridad and almost 40.5% of the total production of the OMIMSA I and OMIMSA II concentrators from Buenavista. In 2010, the smelter also began processing concentrates from the IMMSA mines after we closed the San Luis Potosi smelter. “La Caridad Refinery” started operations in July, 1997 with a production capacity of 493 tonnes of copper cathode per day, which was expanded to 822 tonnes in January, 1998. The installed capacity of the refinery is 300,000 tonnes per year. “La Caridad Precious Metals Plant” started operations in May, 1999. The operations at the precious metal refinery begin with the reception of anodic slimes, which are dried in a steam dryer. After this, the dried slime is smelted and a gold and silver alloy is obtained, which is known as Dore. The precious metal refinery plant has a hydrometallurgical stage and a pyrometallurgical stage, in addition to a steam dryer, Dore casting system, Kaldo furnace, 20 electrolytic cells in the silver refinery, one induction furnace for fine silver, one silver ingot casting system and two reactors for obtaining fine gold. The process ends with the refining of the gold and silver alloy. We also recover commercial selenium from the gas produced by the Kaldo furnace process. 69 “La Caridad Wire Rod Plant”, a rod plant at the La Caridad complex, began operations in 1998 and reached its full annual operating capacity of 150,000 tonnes in 1999. The plant is producing eight-millimeter copper rods with a purity of 99.99%. Effluent and Dust Treatment Plant, in 2012, we began the operation of a dust and effluent plant with a treatment capacity of 5,000 tons of foundry dust per year, which will produce 1,500 tons of copper byproducts and 2,500 tons of lead sulfates per year. This plant is designed to reduce dust emissions from the La Caridad metallurgical complex. Buenavista Mine “Buenavista Concentrator”, the original concentrator currently has a nominal milling capacity of 82,000 tonnes per day. The second concentrator began operations in 2016 with a nominal milling capacity of 115,000 tonnes per day. “Buenavista SX/EW I Plant”, facilities have a cathode production capacity of 174,470 tonnes per year. “Buenavista SX/EW II Plant”, started operating in 1989 with a capacity of 66 tonnes per day, which was expanded to 120 tonnes per day in 2001. “Buenavista SX/EW III Plant” started operating in June 2014; we completed the construction of a new SX-EW plant that has significantly increased production of leachable material by approximately 120,000 tonnes per year. The SX-EW facilities have a cathode production capacity of 174,470 tonnes per year. Underground Mines 70 1. The Santa Barbara Unit with a milling capacity of 5,800 tonnes of ore per day. 2. The Santa Eulalia Unit with a milling capacity of 1,450 tonnes of ore per day. 3. The San Martin Unit with a milling capacity of 4,400 tonnes of ore per day. 4. The Charcas Unit with a milling capacity of 4,100 tonnes of ore per day. 5. The Taxco Unit with a milling capacity of 2,000 tonnes per day. 6. The electrolytic zinc refinery with a capacity of 288 tonnes per day. & s n o i t a r e p O f o n o i t p i r c s e D t n e m p o e v e D l Annual Report 2023 Peruvian operations Toquepala Mine “Toquepala Concentrator”. Directorial Resolution No.455-91-EM/DGM/DCM dated July 5, 1991 approved the operation of the Toquepala Concentrator. The resolution granted 240 hectares of surface land and authorized a throughput of 39,000 tonnes/day Based on Report No. 413-97-EM/DGM/DPDM dated July 7, 1997, the “Director General de Mineria” authorized the expansion of the Toquepala Concentrator to a 43,000 tonnes/day throughput. Based on Report N° 547-2002-EM/DGM/DPDM, dated November 6, 2002, the “Director General de Mineria” authorized the expansion of the Toquepala Concentrator to a capacity of 60,000 MT per day. Resolution N° 0163-2020-MINEM-DGM/V, dated June 11, 2020, based on Report N° 081 – 2020 - MINEM-DGM-DTM/PB, the “Director General de Mineria” authorized the operation and auxiliary facilities of II Molibdenum Circuit at the Toquepala Concentrator to a capacity of 120,000 MT per day. According with this Report, the Company must comply with, among other aspects, environmental recommendations and commitments; safety regulations; and occupational Health and Safety Regulations. “Toquepala Leaching Plant (SX/EW)”. Directorial Resolution No. 166-96-EM/ DGM dated May 7, 1996, approved the operation of the Toquepala SX/EW plant. 71 The resolution granted 60 hectares of surface land and authorized a throughput of 11,850 tonnes/day. Based on Report No. 660-98-EM-DGM/DPDM dated November 10, 1998 the “Director General de Mineria” authorized construction and expansion of Toquepala SX/EW plant to 18,737 tonnes/day throughput. Directoral Resolution dated May 19, 2003, based on Report No. 291-2003-EM-DGM/DPDM, authorized operation of the SX/EW plant to a throughput of 18,737 tonnes/day. Resolution dated December 15, 2021, based on Report No. 0457-2021-MINEM-DGM-DTM/PB, authorized operation of the SX/EW plant from 18,737 tonnes/day to 18, 756 TMD. Cuajone Mine “Botiflaca Concentrator in Cuajone”, Directorial Resolution No. 150-81-EM/ DCM dated August 14, 1981 approved the operation of Botiflaca Concentrator. The resolution granted 56 hectares of surface land. Based on Report No. 266-99-EM/DGM/DPDM dated July 20, 1999 the “Director General de Mineria” authorized the expansion of Botiflaca Concentrator to 87,000 MT per day throughput. Resolution N° 379-2010-MEM-DGM/V dated October 7, 2010 and based on Report N°312-2010-MEM-DGM-DTM/PB, authorized construction and expansion of Botiflaca Concentrator to 90,000 MT per day throughput. For operating reasons, and as part of crusher process optimization, on November 18, 2011, we requested, through resource N° 2144941, that Peruvian authorities consider the addition of three more facilities (HPGR mill and others). On May 2012, through Directoral Resolution N° 153-2012-MEM-DGM-V and based on report 165-2012-MEM-DGM-DTM-P, MEM approved and authorized the project to include the three aforementioned additional facilities in the amendment and increased the installed capacity from 87,000 to 90,000 MT per day. 72 & s n o i t a r e p O f o n o i t p i r c s e D t n e m p o e v e D l Annual Report 2023 “Cuajone Leaching Plant (LX/EW)”, Directorial Resolution No.155-96-EM/DGM dated May 6, 1996 approved the operation of the Cuajone Leaching plant. The resolution granted 400 hectares of surface land and authorized a throughput of 2,100 MT per day. Based on Report No. 988-2009-MEM-DGM/V, dated December 16, 2009, the Cuajone SX plant operation was approved and authorized with a capacity of 3100 MT per day. Ilo Metallurgical Complex “Ilo Smelter”, authorized (definitely) by Directorial Resolution No. 078-69-EM/DGM dated August 21, 1969 approved the operation of the Ilo Smelter. The resolution authorized production of 400 short tonnes/day of blister copper. Based on Report No.204-2000-EM-DGM-DPDM dated June 20, 2000 the “Director General de Mineria” authorized the Ilo Smelter to expand its capacity to 3,100 MT per day throughput of copper concentrates. On February 4, 2010, by the Application N° 1961695, the Company began the process to obtain authorization from the MINEM to operate a capacity of 3,770 MT per day, which is included as an ancillary facility to Acid Plant No. 2, with a capacity of 2,880 MT per day or 1,051,200 MT per year. “Ilo Refinery”, authorized by Report No. 056-94-EM/DGM/DRDM dated May 27, 1994 the “Director General de Mineria” authorized the operation of the Ilo Copper Refinery at 533 MT per day throughput of blister copper. Based on Report No. 506-97-EM/DGM/DPDM dated September 2, 1998 the “Director 73 General de Mineria” authorized expanding Ilo Copper Refinery’s capacity to 658 MT per day throughput. Based on Report N° 080-2002-EM-DGM/DPDM, dated March 14, 2002, the “Director General de Mineria” authorized the Ilo Copper Refinery to expand its capacity to 800 MT per day. Resolution N° 520-2010-MEM-DGM/V dated December 30, 2010, based on Report N° N°414-2010-MEM-DGM-DTM/PB, authorized changes in Ilo copper refinery without expanding its capacity throughput. Resolution N° 0162-2020-MINEM-DGM/V dated June 11, 2020, based on Report N° 080-2020-MINEM-DGM-DTM/PB, authorized the Ilo Copper Refinery to expand its capacity to 810 MT per day. “Sulfuric Acid Plant”, authorized by Directorial Resolution No. 024-96-EM/DGM dated January 19, 1996, approved the operation of the sulfuric acid plant, installed at the smelter, at a production rate of 150,000 tonnes per year. Based on Report No. 313-98-EM/DGM/DPDM dated May 21, 1998 the “Director General de Mineria” authorized the expansion of the Ilo Sulfuric Acid Plant to a capacity of 300,000 tonnes per year production. “Coquina Wash Plant and Seashell Concentrates”, authorized to operate by Directorial Resolution N° 110-93-EM/DGM of August 3, 1993. The plant processes 95 TC/h of raw material (coquina) recovered from nearby mines. Seashell is produced separating sand and other materials from the coquina using seawater-washing screens. Resolution N° 038-2011-MEM-DGM-DTM/PB dated February 2, 2011, based on Report N° 035-2011-MEM-DGM-DTM/PB, authorized modifications to the concession of “Coquina Wash Plant and Seashell Concentrates” to designate it a dry seashell plant without expanding its capacity throughput, which represents 2,068 tonnes/day. Through N° 2499277, dated May 19, 2015, SPCC requested a temporary, three-year 74 & s n o i t a r e p O f o n o i t p i r c s e D t n e m p o e v e D l Annual Report 2023 suspension of its Dry Seashell Concentrates plant. Resolution N° 0850-2018 – MEM-DGM/V dated November 15, 2018, based on Report N° 162-2018 /MEM-DGM-DTM-PCM, SPCC communicated to MEM that it was initiating the closure of the facilities at Coquina Mine. 75 3 2 0 2 t r o p e R l a u n n A 76 TAKING WATER SAMPLES IN FRONT OF THE SCC DOCK, ILO, MOQUEGUA, PERU Letter to ShareholdersAnnual Report 2023 Human Resources Safety and Health At Southern Copper Corporation, caring for the lives, health and welfare of our employees and their families is a priority at all of our operations. Accordingly, our main commitment is to create optimal and safe work environments for our employees by applying the highest occupational health and safety standards. Our goal: ZERO accidents. Our main commitments regarding health and safety, are disclosed on Southern Copper website. An Integrated Occupational Health and Safety Management System allows us to implement effective processes and to provide our employees with the knowledge and skills necessary to identify, control and mitigate risks. The focus is on prioritizing actions and taking the necessary precautions to prevent accidents. In 2023, SCC obtained ISO 45001-2019 certification in all its 77 units. Additionally, in Mexico we maintain 29 units that are certified by Secretariat the Ministry of Labor and Social Welfare in Self-Managed Occupational Health and Safety (PASST), which have endorsed our commitment to best practices in health and safety at work and compliance with government provisions on the matter. In 2023, the accident rate (IR) increased 36% compared to 2022 but stood at rates similar to those seen in previous years. We will continue working to reinforce prevention activities to diminish risks and ensure the physical integrity of our collaborators.. Accident Rate (IR) SCC, 2019-2023 2019 0.82 Severity Rate (SR) SCC, 2019-2023 2019 0.89 2020 0.49 2020 0.19 2021 0.79 2021 0.81 2022 0.50 2022 0.57 2023 0.68 2023 0.72 IR = N° of disabling accidents N° of total men - hours worked x 200,000 GR = N° of days lost N° of total men - hours worked x 1,000 The accomplishments in 2023 on the Occupational Health and Safety front include: • Management and occupational health and safety systems promote risk culture as resulted in a 9% reduction in workplace accidents compared to 2015. • SCC advances in Critical Risk Registry in Mining Division, improving its performance in various controls and preparing to prevent or mitigate unwanted events. We involve responsible for operating units to monitor their performance continuously. In addition, we report monthly their 78 supervision and monitoring to Audit and Corporate Practices Committee at Grupo Mexico and Sustainability Committee of SCC’ board. • Our mining operations in Mexico have received the ELSSA (“Safe and Healthy Work Environments”) distinction awarded by Mexican Government for promoting safe and healthy work environments. s e c r u o s e R n a m u H Annual Report 2023 These results are the product of our safety culture activities, the implementation of inspection plans and, above all, the work and commitment of our collaborators. Occupational Health Healthy environments are part of the organizational culture and management system. The Company assumes the responsibility to establish a culture of involvement, participation, and commitment to enhance the quality of life of our employees, their families, and the communities in which we operate. Occupational Disease Rate SCC 2019-2023 2019 0.23 2020 0.18 2021 0.15 2022 0.13 2023 0.06 ODR = N° of Cases of Occupational Diseases N° of Total Men-Hours Worked x 200,000 We continued efforts to implement several programs related to education, prevention, risk control and medical treatment, and aim to preserve our workers’ health. These programs cover our employees and, in some cases, their family members, contractors, suppliers, institutions and the public. 79 Targeting workplace personnel: Awards to employees or departments with zero accidents Health career Security Courses and Conferences Labor Health Fair Expo safety Internal security forum Targeting employees’ families and the community: Guided tours “Knowing my Company” Health fair Health Career Family gatherings and parades Family Firefighting courses Family contests to promote values 80 s e c r u o s e R n a m u H Annual Report 2023 Investing in Safety and Health In 2023, we invested over $127 million in occupational safety and health efforts for engineering work; to purchase personal protective equipment; provide training and coaching; and conduct industrial hygiene studies. To enhance the culture of occupational health, we have developed programs to promote and protect health and focused on primary prevention, treatment, and rehabilitation. Employees for the year ended December 31th Total Employees in SCC 2019 2020 2021 2022 2023 Total Mexico Total Peru Total Ecuador Total Argentina Total Chile Total Corporate Office Total OHYSA Total 9,358 8,962 9,722 10,005 10,802 4,890 4,739 4,675 4,947 4,979 23 15 9 1 5 58 4 6 3 5 35 15 7 3 5 4 9 10 38 5 1 11 8 4 5 14,301 13,777 14,462 15,018 15,810 Mexican operations 69.8% of our 10,802 Mexican employees were unionized as of December 31, 2023 and are represented by ten different unions. Under mexican law, the terms of employment for unionized workers are set forth in collective bargaining agreements. 81 Mexican companies negotiate the salary provisions of collective bargaining agreements with the labor unions on an annual basis and negotiate other benefits every two years. We conduct negotiations separately at each mining complex and each processing plant. In recent years, the Mexican operations have experienced a positive improvement in their labor environment, as workers opted to change their affiliation from the “Sindicato Nacional de Trabajadores Mineros, Metalurgicos y Similares de la Republica Mexicana” (the “National Mining Union”) to other less politicized unions. Peruvian operations 60.9% of the Company’s 4,979 Peruvian employees were unionized at December 31, 2022. Currently, there are six separate unions, none of which represents the majority of workers, as defined by current peruvian labor legislation. 82 s e c r u o s e R n a m u H Annual Report 2023 Principles of Corporate Governance 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. Given that SCC is not 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 provides information on 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 the date, there are no loans with other companies that comprise more than 10% of SCC’s property. Administrative Judicial or Arbitration Processes Litigation: See Note 13 “Commitments and Contingencies” to our Consolidated Financial Statements on our 2023 Form 10-K. Ms. CPC Lina Vingerhoets is the Company´s Controller and Mr. Bertin Galarreta is our Finance Manager. Information related to the stock entered in the Stock Market Public. Common Stock On November 29, 1995 the Company offered to exchange the recently issued common shares for any and all labor shares of the Peruvian Branch of the Company at a ratio of 83 one common share per four S-1 shares and one common share per five S-2 shares. The exchange expired on December 29, 1995, and 80.8% of the total labor shares in circulation were exchanged 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 Minera Mexico’s 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 shares 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. 84 Between 2008 and 2016, the Company and AMC had bought shares periodically. At December 31, 2023, there were of record 773,110,469 shares of common stock of the Company, par value $0.01 per share, outstanding. e c n a n r e v o G e t a r o p r o C f l o s e p c n i r P i Annual Report 2023 Corporate Notes Between July 2005 and October 2015, the Company issued senior unsecured notes eight times totaling $6.2 billion. 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. At December 31, 2022, the Company was in compliance with this covenant. On September 26, 2019, Minera Mexico S.A. de C.V., a subsidiary of SCC, issued $1 billion Senior Notes at a fixed rate with a discount of $12.7 million, which will be amortized over the corresponding debt period. Additionally, issuance costs of $9.8 million corresponding to these notes were paid and deferred. The unamortized balance of the discount and the costs of this bond are presented net of the book value of the debt issued and are amortized as financial expenses over the life of the loan. This debt was issued in a single tranche, maturing in 2050 at an annual interest rate of 4.5%. Interest on the notes is paid semiannually after maturity. The Company intends to use the net proceeds from this offering (i) to finance Minera Mexico’s expansion program, including the Buenavista Zinc, Pilares and El Pilar projects, (ii) for other capital expenditures and (iii) for general corporate purposes. 85 The notes constitute general unsecured obligations of Minera Mexico. The notes were issued in an unregistered offering pursuant to Rule 144A and Regulation S under the Securities Act of 1933. Please see Note 11 “Financing” for a discussion about the covenants’ requirements with regard to our long-term debt, on our 2023 Form 10-K. Members of the Board of Directors 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. Mr. Larrea presides over every Board meeting and since 1999, has been contributing to the Company through his education, leadership skills, industry knowledge, strategic vision, informed judgment and over 20 years of business experience, especially in the mining sector. As Chairman and Chief Executive Officer of Grupo Mexico, of Grupo Ferroviario Mexicano, S.A. de C.V. and of EIM, a holding company engaged in a variety of business, including mining, construction, railways, real estate, and drilling, he offers the Company a valuable mix of business experience in different industries. 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 Chief Executive Officer and director of Asarco LLC (integrated U.S. copper producer), an affiliate of 86 s r o t c e r i D f o d r a o B Annual Report 2023 the Company, since August 2010 and President, Chief Executive Officer of Americas Mining Corporation (“AMC”) a holding company of Grupo Mexico, since 2015. Previously, he was the President, General Director and Chief Operating Officer of Minera Mexico S.A. de C.V. from December 1999 to October 20, 2004. Mr. Gonzalez Rocha has been a director of Grupo Mexico since 2002. He was General Director of Mexicana de Cobre, S.A. de C.V. from 1986 to 1999 and of Buenavista del Cobre, S.A. de C.V. (formerly Mexicana de Cananea, S.A. de C.V.) from 1990 to 1999. He was an alternate director of Grupo Mexico from 1988 to April 2002. Mr. Gonzalez Rocha is a civil engineer with a degree from the Autonomous National University of Mexico (“UNAM”) in Mexico City, Mexico. Mr. Gonzalez Rocha is a civil engineer by profession and a businessman with over 40 years of experience in the mining industry. He has been associated with our Mexican operations since 1976. His contributions to the Company include his professional skills, leadership, an open mind and a willingness to listen to different opinions. Mr. Gonzalez Rocha has proven his ability to deal with crises to lessen negative impacts on the Company. His dedication to the Company and hands-on management of the operations in Mexico and Peru enable him to effectively lead the Company. Mr. Gonzalez Rocha was recognized as Copper Man of the Year 2015 and was inducted into the American Mining Hall of Fame in December 2016 in Tucson, Arizona and into the Mexican Mining Hall of Fame in October 2017 in Guadalajara, Mexico. Vicente Ariztegui Andreve, Independent Director. Mr. Vicente Ariztegui Andreve, Independent Director. Mr. Ariztegui Andreve has been a director of the Company since April 25, 2018. He is Managing Director and Chairman of Aonia Holding, a wholly owned private investment firm he founded 87 in 1989. Aonia has made investments in the following industries: gold mining, global commodity trading, retailing (e.g. dutyfree shops), infrastructure (e.g. airport terminal operation), asset management and real estate. Over the last five years, he has continued to invest in private entities, aside from managing his real estate holdings. Mr. Ariztegui Andreve worked as a Corporate Banker and Vice President of international operations and trade finance for Citibank in New York and Mexico City (1979-1987). He founded and was President and Chief Executive Officer of MK Metal Trading, a global based metal and mineral — copper, zinc, lead, gold and silver concentrates — trading company. After 18 years in business (1994-2012), he sold MK Metal Trading to a larger global trader (ie Ocean Partners Holdings Limited). Mr. Ariztegui Andreve currently serves as member of the Board of Directors of several non-public companies: InverCap Holding (Pension fund manager), Alvamex (international storage and logistics), ALTUM (senior secured private debt manager). He is former director of Dufry AG (leading global retailler and airport duty free operator), Latin American Airport Holdings (airport infrastructure and terminal operator), Satelites Mexicanos (SATMEX — Satellite operator), Banco Mexicano (Banking), Grupo financiero Inverlat (financial services), Minera Santa Gertrudis (gold mining), University Club of Mexico and Club de Golf Chapultepec. During the last five years Mr. Ariztegui did not serve as a director of any US public company. In 1979 he received an MBA from the Wharton School of Business and Finance and an MSE from the Moore School of Engineering, both from the University of Pennsylvania. 88 s r o t c e r i D f o d r a o B Annual Report 2023  Mr. Ariztegui Andreve became a member of the Audit Committee on July 22, 2021, and founding Chairman of the Sustainability Committee on July 21, 2022. He is one of our “Audit Committee Financial Experts”, as the term is defined by the SEC. He brings to the Company his education in finance, from his academic studies (Wharton MBA) and his vast experience in business in the financial (e.g. his tenure as corporate banker at Citibank), mining and commercial fields. He also adds to the Board of Directors his leadership experience and expertise attained through his participation as a director of other companies. Enrique Castillo Sanchez Mejorada, Independent Director. Mr. Castillo Sanchez Mejorada has been a director of the Company since July 26, 2010 and is our fifth independent director nominee. From May 2013 to December 2020, Mr. Castillo Sanchez Mejorada was Senior Partner of Ventura Capital Privado, S.A. de C.V. (Mexican financial company). From October 2013 to April 2021, he was Chairman of the board of directors of Maxcom Telecomunicaciones, S.A.B. de C.V. (Mexican telecommunications company). From April 2011 to May 2013, Mr. Castillo Sanchez Mejorada was a senior advisor at Grupo Financiero Banorte, S.A.B. de C.V.(“GFNorte”) a financial holding institution that controls a bank, a broker dealer and other financial institutions in Mexico. From October 2000 to March 2011, Mr. Castillo Sanchez Mejorada was the Chairman of the board of directors and Chief Executive Officer of Ixe Grupo Financiero, S.A.B. de C.V., a Mexican financial holding company that merged into GFNorte in April 2011. In addition, from March 2007 to March 2009, Mr. Castillo Sanchez Mejorada was the 89 President of the Mexican Banking Association (Asociacion de Bancos de Mexico). Currently, Mr. Castillo Sanchez Mejorada is Chairman of the Board of Banco Nacional de Mexico, S.A. (Citibanamex) and Chairman of the Board CBM Banco, S.A., one of the largest banks in Mexico, and member of the board of Grupo Financiero Citibanamex, where he serves as a member of the practices committee and audit committee. He 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 and food processing sectors. Mr. Castillo Sanchez Mejorada also serves as a member of the audit committee of (iii) Medica Sur, S.A.B. de C.V., a Mexico-based company engaged in the hospital business; and (iv) Laboratorios Sanfer, S.A. de C.V., one of the leading companies in the Mexican pharmaceutical market. He is also a Senior Advisor for General Atlantic in Mexico, a private equity firm based out of New York. Mr. Castillo Sanchez Mejorada holds a Bachelor’s degree in Business Administration from the Anahuac University, in Mexico City, Mexico. Mr. Castillo Sanchez Mejorada became a member of our Audit Committee on April 18, 2013. Mr. Castillo Sanchez Mejorada brings to the Company more than 45 years of experience in the financial sector. His leadership experience and the expertise attained through his work as an independent director of other companies add value to his participation on the Company’s board. Leonardo Contreras Lerdo de Tejada, Director. 90 Mr. Leonardo Contreras Lerdo de Tejada has been a director of the Company since May 2021. He joined AMC on September 10, 2018. He was appointed President of ASARCO in January 2019; Director for Commercial and Supply Chain of AMC in August 2019; President of IMMSA, a subsidiary of the Company that integrates the underground operations, in August 2020; and Chief Financial Officer of AMC s r o t c e r i D f o d r a o B Annual Report 2023 in January 2022. Mr. Contreras Lerdo de Tejada has more than 10 years of experience in private equity, investment banking, and entrepreneurship. Prior to joining AMC, Mr. Leonardo Contreras Lerdo de Tejada founded and worked at Murano Capital in September 2015, a private investment vehicle. Mr. Contreras Lerdo de Tejada holds a BS in Industrial Engineering from Universidad Anahuac in Mexico City and earned an MBA degree from the University of Chicago Booth School of Business. Mr. Contreras Lerdo de Tejada is the son-in-law of Mr. German Larrea Mota-Velasco. Mr. Leonardo Contreras Lerdo de Tejada brings a set of operating, human capital and financial skills to the Company, which derive from his more than 10 years of experience in private equity, investment banking and entrepreneurship. Luis Miguel Palomino Bonilla, Special Independent Director. Dr. Palomino has been a director of the Company since March 19, 2004. Dr. Palomino is the President of the Peruvian Economics Institute (a think tank) since April of 2022, after having served as Director, Consultant and Chief Executive Officer since January of 2007. He has also been a director of the Master in Finance Program at the University of the Pacific in Lima, Peru since July 2009 and an Associate of the Franklin Delano Roosevelt Institute since December 2022 to date. Dr. Palomino has been a member of the board of directors of Laboratorios Portugal (personal care products manufacturer) since September 2017 and a member of the board of directors of Summa Capital, S. A. (corporate consulting firm) since April 2014 and was a director of Mall Aventura, S.A., from 91 March 2021 to March 2023. Dr. Palomino was a member of the board of directors and Vice-chairman of the Central Bank of Peru (Banco Central de Reserva del Peru) from September 2016 to October 2021. He was the Chairman of the board of directors of Aventura Plaza, S.A. (commercial real estate developer and operator) from January 2008 to June 2016, member of the board of directors and Manager of the Peruvian Economic Institute (economic think tank) from April 2009 to August 2016, Partner of Profit Consultoria e Inversiones (a financial consulting firm) from July 2007 to July 2016, and a member of the board of directors and chairman of the audit committee of the Bolsa de Valores de Lima (Lima Stock Exchange) from March 2013 to July 2016. Dr. Palomino was Principal and Senior Consultant of Proconsulta International (financial consulting) from September 2003 to June 2007. He was First Vice President and Chief Economist, Latin America, for Merrill Lynch, Pierce, Fenner & Smith, New York (investment banking) from 2000 to 2002. He was Chief Executive Officer, Senior Country and Equity Analyst of Merrill Lynch, Peru (investment banking) from 1995 to 2000. Dr. Palomino has held various positions with banks and financial institutions as an economist, financial advisor and analyst. He has a PhD in finance from the Wharton School of the University of Pennsylvania in Philadelphia, Pennsylvania and graduated from the Economics Program of the University of the Pacific in Lima, Peru. Dr. Palomino is a member of our Audit Committee and a special independent director nominee. He is also one of our “Audit Committee Financial Experts,” as the term is defined by the SEC. Dr. Palomino’s wise counsel is well recognized and he contributes to the Company, among other venues, through his vast expertise as a financial analyst of the mining sectors in Mexico and Peru. Gilberto Perezalonso Cifuentes, Special Independent Director. Mr. Perezalonso has been a director of the Company since June 2002. Currently, Mr. Perezalonso is a member of the board of directors of Gigante, S.A. de C.V. (retail and real estate) and Blasky (hotel chain in Baja California, Mexico). Mr. Perezalonso 92 s r o t c e r i D f o d r a o B Annual Report 2023 was Chairman of the board of directors of Volaris Compañia de Aviacion, S.A.P.I. de C.V. (airline) from March 2, 2011 to November 2014. He was Chief Executive Officer of Corporacion Geo, S.A. de C.V. (housing construction) from February 2006 to February 2007. Mr. Perezalonso was the Chief Executive Officer of Aeromexico (Aerovias de Mexico, S.A. de C.V.) (airline company) from 2004 until December 2005. From 1998 until April 2001, he was Executive Vice President of Administration and Finance of Grupo Televisa, S.A.B. (media company). From 1980 until February 1998, Mr. Perezalonso held various positions with Grupo Cifra, S.A. de C.V. (retail and department stores), the most recent position being that of General Director of Administration and Finance. He was also a member of the Advisory Council of Banco Nacional de Mexico, S.A. de C.V. (banking), member of the board of directors and the investment committee of Afore Banamex (banking), the board and the investment committee of Siefore Banamex No. 1 (banking), Masnegocio Co. S. de R.L. de C.V. (information technology), Intellego (technology), Telefonica Moviles Mexico, S.A. de C.V. (wireless communication), Marhnos Construction Company (housing construction), and Fomento de Investigacion y Cultura Superior, A.C. (Foundation of the Iberoamerican University in Mexico). Mr. Perezalonso was also a director of Cablevision, S.A. de C.V., 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 Masters 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. Mr. Perezalonso is a special independent director nominee. Mr. Perezalonso 93 contributes to the Company through: his legal and financial education, including a Masters degree in Business Administration from INCAE in Nicaragua; his business experience in financial areas of several companies; and his position as Chief Executive Officer of different companies. Mr. Perezalonso also brings to the Board of Directors informed judgment and diversified business experience as a member of boards of directors of different Mexican companies. Carlos Ruiz Sacristan, Special Independent Director. Mr. Ruiz Sacristan has been a director of the Company since February 12. 2004. 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 and since January 2022, is a strategic advisor to Sempra lnfrastructure, an operating subsidiary of Sempra Energy. Mr. Ruiz Sacristan has held various distinguished positions in the Mexican government, the most recent of which was as Secretary of Communications and Transportation of Mexico from 1995 to 2000. While holding that position, he was also Chairman of the board of directors of the Mexican-owned companies in the sector, and member of the board of directors of development banks. He was also the Chairman of the board of directors of Asarco LLC. Mr. Ruiz Sacristan was Chairman of the board of directors and Executive President of IEnova, the Mexican operating subsidiary of Sempra Energy from September 2020 to November 2021. Mr. Ruiz Sacristan was Chief Executive Officer of Sempra North American lnfrastructure Group from 2018 until September 2020. Prior to this appointment, Mr. Ruiz Sacristan was Chairman and Chief Executive Officer of IEnova from 2012 to 2018 and a member of 94 s r o t c e r i D f o d r a o B Annual Report 2023 the board of directors of Sempra Energy from 2007 to 2012. 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) and of Banco Ve Por Mas, S.A. (Mexican bank). and of Byline Bancorp. Mr. Ruiz Sacristan holds a Bachelor’s degree in Business Administration from the Anahuac University in Mexico City, Mexico, and a Masters degree in Business Administration from Northwestern University in Chicago, Illinois. Mr. Ruiz Sacristan is one of our special independent director nominees. Mr. Ruiz Sacristan contributes to the Company via his extensive business studies, including a Master’s Degree in Business Administration from Northwestern University in Chicago, Illinois; broad investment banking experience; his position as former Chief Executive Officer of PEMEX (Mexican oil company); a distinguished career in the Mexican government as a former Secretary of Communications and Transport of Mexico; and director of Mexican- owned enterprises and financial institutions. Mr. Ruiz Sacristan also brings to the Board of Directors his informed judgment and the diverse business experience gained from: serving on the board of directors and of the audit, environmental and technology committees of Sempra Energy, a Fortune 500 energy service company, based in San Diego, California; acting as Chairman of Asarco LLC; and serving the Chief Executive Officer of IEnova. 95 Executive Officers At december 31, 2023 German Larrea Mota Velasco Chairman of the Board of Directors Oscar Gonzalez Rocha President and Chief Executive Officer Raul Jacob Ruisanchez Vice President, Finance Treasurer and Chief Financial Officer Edgard Corrales Aguilar Vice President, Exploration Jorge Lazalde Psihas Secretary Andres Ferrero Ghislieri General Counsel Lina Vingerhoets Vilca Comptroller Raul Vaca Castro General Auditor 96 s r e c fi f O e v i t u c e x E Annual Report 2023 97 WHITE HERON, ITE WETLANDS, TACNA, PERU Controlled Companies- Affinity and Inbreeding A company with more than 50% of the voting power held by a one single entity is a “controlled company”, and does not need to comply with the Corporate Governance requirements of the New York Stock Exchange (“NYSE”), which requires 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 88.9% of the stock of the Company, as of December 31, 2022. 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. Vicente Ariztegui Andreve and Enrique Castillo Sanchez Mejorada are our fourth and fifth independent directors. At its meeting on April 20th, 2023, the Board of Directors determined that Messrs. Luis Miguel Palomino Bonilla, Gilberto Perezalonso Cifuentes, Carlos Ruiz Sacristan, Vicente Ariztegui Andreve, Enrique Castillo Sanchez Mejorada and Rafael Mac Gregor Anciola continue to be independent of management, in accordance with the requirements of the NYSE as such requirements are interpreted by our Board of Directors in its business judgmentl. Special Committees of the Board SCC’s Board of Directors has organized the following Special Committees: 98 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 i s e n a p m o C d e l l o r t n o C Annual Report 2023 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 the Securities and Exchange Commission (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 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 of SCC, 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 for employees that 99 are US citizens or residents The Named Fiduciary controls and manages 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, with delegated authority, to administer and manage said plans and to oversee the performance of the trust agents and other fiduciaries charged with investing the plans’ funds. Administration and Board Income Total remunerations of Board and Administration members, in relation to the Company´s gross income is 0.11%. Annual Meeting The annual meeting of shareholders of Southern Copper Corporation will be held on May 24, 2024 at 9:00 A.M., Mexico City time. Corporate Offices United States Mexico Peru 7310 North 16th, Suite 135 Campos Eliseos No. 400, Ave. Caminos del Inca N° 171 Phoenix, AZ 85020, USA 11 floor, Chacarilla del Estanque Phone: +1(602) 264-1375 Col. Lomas de Chapultepec Santiago de Surco, Mexico Postal code 15038, Peru Phone: +(52-55) 1103-5000. Phone: +(511) 512-0440, Ext- 35855 Ext. 63181 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 Computershare. For more information, contact Computershare at phone +1(866) 230-0172. Stock Exchange Listing The principal markets for SCC’s Common Stock are the New York Stock Exchange (“NYSE”) 100 and the Lima Stock Exchange (“BVL”). 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. i s e n a p m o C d e l l o r t n o C Annual Report 2023 Transfer Agent, registrar and stockholders services to the SCC Common and Investment shareholders are provided by Credicorp Capital, at El Derby Ave. 055, Tower 4, 10th floor, Santiago de Surco, Lima, Peru Phone +(511) 313-2478. Other Corporate Information For other information on the corporation or to obtain additional copies of the annual report, Form 10-K 2023 (free of charge) contact to Investor Relations Department at our corporate offices: Southern Copper Corporation USA: 7312 North 16th, Suite 135 Phoenix, AZ 85020, USA Phone: +(602) 264-1375 MEXICO: Campos Eliseos No. 400, 11 floor, Col. Lomas de Chapultepec Mexico D.F. Phone +(52-55) 1103-5000, Ext. 35855 PERU: Caminos del Inca Avenue, N° 171 Chacarilla del Estanque, Santiago de Surco – Postal Code 15038- Peru. Phone. +(511) 512-0440, Ext. 63181 Web page: www.southerncoppercorp.com Email address: southerncopper@southernperu.com.pe 101 LA CARIDAD CONCENTRATOR PLANT, NACOZARI DE GARCIA, SONORA, MEXICO Members of the Board of Directors German Larrea Mota-Velasco Leonardo Contreras Lerdo de Tejada Oscar Gonzalez Rocha Luis Miguel Palomino Bonilla Vicente Ariztegui Andreve Gilberto Perezalonso Cifuentes Enrique Castillo Sanchez Mejorada Carlos Ruiz Sacristan Audit Committee Luis Miguel Palomino Bonilla (Chairman) Vicente Ariztegui Andreve Enrique Castillo Sanchez Mejorada 102 Annual Report 202323 Strength and determination Annual Report i n o i t a n m r e t e d d n a h t g n e r t S 3 2 0 2 T R O P E R L A U N N A southerncoppercorp.com 

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