Southern Copper Grows Optimistic on Building Contested Copper Mine in Peru

Southern Copper is expressing increasing optimism about the possibility of constructing a highly contested copper mine in Peru's coastal mountains as sociopolitical tensions appear to be easing.

The company has faced challenges for years in convincing local communities of the benefits of the Tia Maria project. In 2019, the approval of its mining license sparked weeks of protests, and former President Pedro Castillo had previously opposed the project. However, Southern Copper now reports making progress with local communities recently.

During an earnings call on Friday, Chief Financial Officer Raul Jacob stated, "Basically we are relatively much more optimistic than we were a year ago."

Successfully developing the $1.4-billion Tia Maria project would be a significant breakthrough in Peru, where the mining industry often faces strained relationships with isolated rural communities. The project is a part of Southern Copper's $15-billion pipeline of projects scheduled for this decade.

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