Southern Copper Weighs $680M Cuajone Mine Expansion

Southern Copper is evaluating a $680-million expansion of its Cuajone mine in southern Peru to counter declining ore grades and improve efficiency, according to Mining.com. The proposal seeks to address growing pressure within the global copper industry to develop new supply.

Capacity and Production Targets

The proposed milling upgrade would increase capacity by 33%, moving from 90,000 to 120,000 tonnes per day. Projected average annual production from the expansion would reach 55,000 tonnes of copper and 1,400 tonnes of molybdenum. The company is also studying a further increase to 150,000 tonnes per day.

Southern Copper reported that its overall copper production fell 2.9% to 693,602 tonnes in the first nine months of 2026, largely due to lower ore grades at its Peruvian mines. The Cuajone operation produced nearly 163,000 tonnes of fine copper in 2025.

Wider Investment Context

The expansion proposal arrives amid broader industry warnings regarding potential supply deficits. BloombergNEF estimates the industry requires $332 billion in new mine investment to avert a supply shortage beginning in 2028. Meanwhile, Wood Mackenzie noted that geopolitical disruptions and soaring electricity demand from artificial intelligence are putting increasing pressure on global metals supplies.

Southern Copper has outlined preliminary production targets for the Cuajone expansion but has yet to announce a final investment decision or timetable. The company's wider capital investment program exceeds $15 billion this decade, with more than $10.3 billion potentially directed toward projects in Peru, including the Tia Maria, Los Chancas, and Michiquillay developments.

Key facts

• Southern Copper is evaluating a $680 million expansion of the Cuajone mine in southern Peru.
• The milling upgrade would increase capacity by 33%, from 90,000 to 120,000 tonnes per day.
• Projected average annual production includes 55,000 tonnes of copper and 1,400 tonnes of molybdenum.
• The company has not yet announced a final investment decision or timetable for the project.