Southern Peru Copper Corporation said it secured US$1.25 billion in financing for the Tía María project through a bond offering in New York. The debt carries a 5.35% annual interest rate and matures in 2036.
The company said Tía María is designed to produce 120,000 metric tons of refined copper a year and is scheduled to start operations in the third quarter of 2027. So far, the project has generated 5,300 jobs.
Southern Peru Copper put the project’s total capital budget at US$1.8 billion and said US$948 million has already been committed, leaving US$852 million still to be funded.
At current copper prices, the company expects Tía María to generate about US$24.1 billion in exports and contribute US$6.2 billion in taxes and royalties over its first 20 years of operation.
The company also highlighted its Michiquillay project in Cajamarca, which it said is expected to produce about 225,000 metric tons of copper a year plus molybdenum, gold and silver by-products over an initial mine life of more than 25 years. That project carries an estimated investment requirement of US$2.5 billion and is expected to begin production in 2032. Following these announcements, the company's shares moved 1.23%, and are now trading at a price of $176.885. Check out the company's full 8-K submission here.
