Grupo México plans $4 billion to $6 billion expansion at US copper unit Asarco

Grupo México, the Mexican mining and transportation conglomerate, will invest between $4 billion and $6 billion over the next three years to expand its US copper subsidiary Asarco, the head of its mining division said on an Oct. 22 earnings call with analysts.

The plan covers the expansion of the Ray mine, development of the Silver Bell deposit and the restart of the Hayden smelter and refinery, all in Arizona. La Jornada reported that third-quarter copper output fell to 260,322 metric tonnes, 1.9% below the same period a year earlier, on lower volumes in Peru and at Asarco. The commitment far exceeds the $101 million the unit spent in 2024, according to Mexico News Daily. Grupo México runs copper operations through Southern Copper in Mexico and Peru and through Asarco in the United States, making it one of the largest copper producers in the Americas. The bet lands as Washington pushes to keep critical mineral processing inside North America: copper feeds power grids, electric vehicles and chip manufacturing.

Leonardo Contreras, the mining division chief, said the company is "increasingly optimistic" about Hayden, which he said has capacity to process 1.4 million tonnes of copper concentrate a year, equal to almost 350,000 tonnes of contained copper and potentially 500,000 tonnes if the material moves through the refinery. El Economista reported the same capacity figures. Ray is expanding while feasibility studies continue, and Silver Bell remains in feasibility. Grupo México trimmed its 2026 copper target to 1.026 million tonnes from 1.034 million. Third-quarter net profit rose 56% to $2 billion on revenue of $6.33 billion, up 38%, Mexico News Daily reported. Itaú analysts, cited in the same report, said management is also weighing how to integrate Mexican concentrates and US copper scrap into the US operations.

Grupo México has not set a date for restarting Hayden, and it expects more clarity on the Silver Bell feasibility study in the coming quarters. In Peru, Southern Copper's Los Chancas and Michiquillay projects are targeted for 2032, alongside the Tía María mine, now expected online in the first half of 2028.

Sources: Grupo México prevé invertir hasta 6 mil millones de dólares en Asarco durante tres años · Grupo México plans expansion of US copper operations · Grupo México prevé invertir hasta 6,000 millones de dólares en Asarco en los próximos tres años

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