Southern Copper Lines Up US$8.2 Billion of Peru Projects Through 2033

Peru · MINING

The plan targets 1.6 million tonnes of copper by 2033, a big step for Peru’s largest producer.

Southern Copper is lining up more than US$8.2 billion of investment in Peru through 2033, according to El Comercio. The plan covers four major projects that could reshape the country’s copper output.

Southern Copper’s Peru Investment Plan

In short, southern Copper plans to invest more than US$8.2 billion in Peru over the next decade. El Comercio reported the plan on 20 August 2026, based on company information.

The total includes four projects: Tia Maria, Los Chancas, Michiquillay, and an expansion of the Ilo smelter. In addition, the company says investment in projects under construction or in engineering could pass US$10.3 billion.

Tia Maria Project Moves Forward

Tia Maria is one of the largest pieces, with a budget of about US$1.8 billion. It is funded in part by a US$1.25 billion ten-year bond.

Management targets operation around 2027, and the project is more than 40% complete. Therefore, it is well on its way to becoming a major source of copper.

Los Chancas in Apurimac

Meanwhile, los Chancas, located in Apurimac, is expected to start operating by 2031. It will produce roughly 130,000 tonnes of copper a year, plus molybdenum.

Molybdenum is a metal used to harden steel and is often mined alongside copper. As a result, this project adds value beyond just copper.

Michiquillay to Boost Output

Michiquillay is expected to start operating in 2032. It will produce about 225,000 tonnes of copper a year.

Combined with other projects, Southern Copper aims to lift output towards 1.6 million tonnes of copper by 2033 and 2034. This is a significant increase from current levels.

Ilo Smelter Expansion

For example, the Ilo smelter expansion is budgeted at about US$1.26 to US$1.3 billion. This will modernize and increase capacity at the existing facility.

Ilo is already part of Southern Copper’s operations in Peru, alongside the Toquepala and Cuajone mines. Therefore, this expansion fits into a broader strategy.

Southern Copper’s Position in Peru

Southern Copper is Peru’s largest copper producer. It runs the Toquepala and Cuajone mines and the Ilo smelter and refinery.

The company’s parent is Grupo Mexico, which controls about 89% through Americas Mining Corporation. This strong backing supports the ambitious investment plan.

Peru’s Broader Economic Context

Meanwhile, Peru’s formal employment rose 4.2% year on year in June 2026. This added 251,000 formal jobs against June 2025, according to the central bank.

That figure covers formal jobs only, not total employment. Still, it shows a healthy labor market as mining investment grows.

Lima’s Employment Numbers

In the rolling quarter from April to June 2026, the employed population of metropolitan Lima reached 5,894,400 people. That is up 7.5% or 413,000 on the same period in 2025.

Gestion reported on 20 August 2026 that Lima’s employed population is about 11,300 short of six million. This is a strong sign for the capital’s economy.

Southern Copper’s Long-Term Vision

Overall, Southern Copper’s plan through 2033 is a major bet on Peru’s mining future. By 2033 and 2034, the company aims to produce 1.6 million tonnes of copper annually.

The four projects account for US$8.2 billion of the potential US$10.3 billion in investment. In short, Southern Copper is positioning itself for decades of growth.

Frequently Asked Questions

What projects does Southern Copper’s US$8.2 billion plan include?

The plan covers Tia Maria, Los Chancas, Michiquillay, and an expansion of the Ilo smelter. Tia Maria is budgeted at US$1.8 billion and Los Chancas at US$2.6 billion.

When will Southern Copper’s projects start operating?

Tia Maria is targeted for around 2027, Los Chancas by 2031, and Michiquillay by 2032. The Ilo smelter expansion is part of the same timeline.

How much copper does Southern Copper aim to produce?

The company aims to lift output towards 1.6 million tonnes of copper by 2033 and 2034. This would be a significant increase from current production levels.

Who owns Southern Copper?

Southern Copper’s parent is Grupo Mexico, which controls about 89% through Americas Mining Corporation. This gives the company strong financial backing for its Peru projects.

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