Earnings Grow 36% Southern Copper Mexico Group

Earnings grow 36% Southern Copper
February 2, 2011 - 16:29Credit:Reuters
Photo: File EE
Lima .- Southern Copper, one of the largest copper producers in the world, reported Wednesday that its profits rose 36% yoy in the fourth quarter, an increase of production and a rise in copper prices.

SPC.LM SCCO.N Southern Copper, controlled by Grupo Mexico GMEXICOB.MX , earned 492.2 million dollars in the fourth quarter compared with U.S. $ 363.3 million for the same period last year.

With these results, Southern Copper accumulated a profit of 1,554 million in 2010 compared to U.S. $ 929.4 million a year earlier.

The company, which has operations in Peru and Mexico, said production in the fourth quarter increased 3.5% to 130,553 tonnes.

" This increase was primarily due to 15,170 tons of SX / EW copper production at our mine Buenavista, formerly Cananea, which offset the fall in the laws of operations Cuajone and Charity , "the company said in a statement.

According to Southern Copper, the mine Buenavista continues in a process of reconstruction and said that his concentrator reached full capacity in the first quarter of 2011.

On the other hand, the company estimated its key copper project in Peru, Tia Maria, which would raise production by 120,000 additional tons, could start production in the fourth quarter of 2012.

"In 2011 we will continue our aggressive expansion capital projects and metal miners," said chairman of the firm, Larrea.

Southern announced the development of projects with a total investment of 5,600 million dollars for expansion of mining and metallurgy in the next five years.

Southern Copper said it signed contracts also cover copper to reduce the volatility in prices and protect the value of sales .

"Today's contract swaps cover approximately 28% of copper production for 2011 to a previous average of $ 4 per pound," he said.