SCC puts capex spending on hold, may cancel Tía María - Mexico, Peru
Published: Friday, January 30, 2009 18:00 (GMT -0400)
By Business News Americas staff reporters
bnamericas.com
US-based miner Southern Copper (SCC) (NYSE: PCU) has placed all its capital expenditures on hold or "under scrutiny," the company said in its quarterly results report.
The company reported a US$125mn net loss in 4Q08, mostly due to plummeting metals prices.
SCC said it would either put on hold or stop altogether its Tía María project in Peru due to the present market conditions. As of December 31, the company had spent US$118mn on the project.
The company is reviewing the feasibility of an expansion project at its Toquepala mine in Peru, for which it has spent US$37.7mn so far.
"For the Cuajone expansion project [in Peru] we have signed a feasibility study contract and will only continue at this point with the engineering and environmental impact assessment," the report said.
SCC added that it will continue to evaluate the Los Chancas project in Peru, and the El Arco and Pilares projects in Mexico, along with an underground development initiative at Angangueo, also in Mexico. |
