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(AMM) Southern Copper unveils $3.8B expansion plans (UPDATE)

July 29, 2010 - 23:06 GMT Location: New York

KEYWORDS: Southern Copper , expansion , molybdenum , copper

Southern Copper Corp. unveiled plans for its $3.8-billion operations expansion as the company raised its molybdenum output forecast and kept its copper production target unchanged.

SCC announced Wednesday that the board of directors approved a $3.8-billion capital expenditure program to expand the company's copper operations over the next five years. The company plans to invest $2.1 billion to expand the Cananea Mine's copper output to 450,000 tons from 180,000 tons. SCC's board of directors approved the investment just seven weeks after Southern Copper regained control of Cananea in June, when federal police ejected striking miners from the operation.

"I am pleased to inform that we are fully committed to restore Cananea's production and to initiate our aggressive expansion programs that had been delayed due to the labor disputes," chairman German Larrea said in a statement.

SCC management said that aggressive repair and rehabilitation work is currently under way at Cananea. The company is spending $114 million and plans to restart production in September this year and restore full capacity at the...

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