The mining company Southern Copper Corporation has four fuel and power suppliers in Peru.

Southern Copper had a 1.5% year-on-year drop in net sales in 2023, to US$9,895.8 million, and an 8.1% drop in net profits, to US$2,434.7 million.

In Peru, the company obtains fuel mainly from Valero Peru, a local subsidiary of Valero Energy Corporation, a U.S. fuel and power producer. 

In this regard, it believes that there are adequate supplies of fuel available for its operations in Peru.

Regarding electricity, in June 2014, the company entered into a 120 megawatt (MW) power purchase agreement with state-owned Electroperu, which began supplying power to its Peruvian operations for a 20-year period beginning April 17, 2017. 

A month later, in July 2014, Southern Copper entered into a 120 MW power purchase agreement with a private generator Kallpa Generación. 

Kallpa began supplying power to Southern Copper’s Peruvian operations for a 10-year period that began on April 17, 2017.

Southern Copper

In May 2016, the mining company also signed an additional power purchase agreement for up to 80 MW with Kallpa, under which Kallpa will supply power to operations related to the Toquepala expansion and other minor projects for a period beginning May 1, 2017 and ending after ten years of commercial operations at the Toquepala Expansion or until April 30, 2029; whichever occurs first. 

The main raw materials used in this company’s operations are fuel, gas, electricity and water. 

In addition, the company uses natural gas to fuel boilers and generators and uses diesel fuel to power mining equipment for metallurgical processes at its operations. 

Mining

Southern Copper is one of the world’s largest integrated copper producers and its main production includes copper, molybdenum, zinc and silver. 

All of its mining, smelting and refining facilities are located in Peru and Mexico and it conducts exploration activities in those countries and in Argentina, Chile and Ecuador.