On April 26 (Saturday), despite facing the impact of tariff policy uncertainty, Southern Copper expects its copper sales to remain robust as demand sources shift from the construction sector to the energy and technology sectors.
Raul Jacob, CFO of Southern Copper, stated, "We hold a positive outlook for the copper market. We anticipate a shift in demand from infrastructure to new energy technologies and artificial intelligence."
"Solar power generation requires more copper than traditional carbon-based power generation. Additionally, the development of AI also demands significant amounts of copper, as well as materials like zinc and silver. We predict that prices will be well-supported in the coming years."
Jacob noted that while trade uncertainties may have short-term impacts, they are unlikely to persist in the long run.
Southern Copper produced 242,004 mt of copper in Q1 2025, up from 240,679 mt in the same period last year. The company's quarterly report indicates that production at the Toquepala mine in the Tacna region of Peru increased by 11.6%, offsetting the decline in output from other open-pit mines.
Although the US has suspended the implementation of a 25% copper tariff, the mining company may still divert products destined for the US market to other markets if necessary. Jacob stated that this move would help mitigate the impact of external shocks.
"We prefer to wait until this situation is resolved. As I mentioned, we are pleased to see that the US has recognized the important role of copper as a zero-tariff imported material, and we hope this will be the case in the long term."
Jacob declined to comment on the possibility of price reductions or contract cancellations, stating that the sales department is responsible for handling such matters.
Southern Copper has invested heavily in the Tia Maria project in the Arequipa region. Construction of roads and platforms for accessing the project is 61% complete. The updated capital expenditure for this year is $200 million, $980 million for 2026, and $46 million for 2027.
"We are not concerned about the construction work; we believe the project is progressing smoothly. We are considering some financing, but the market must become more stable."
He added that there is high social acceptance of the project, with almost no opposition within the affected areas.
The Tia Maria project is expected to produce 120,000 mt of copper annually.
