The mining and transportation conglomerate Grupo México announced on Thursday plans to double down on its investments in its U.S. copper mining unit, Asarco.
Grupo México plans to spend between US $4 billion and $6 billion over the next three years on Asarco projects, to expand the Ray and Silver Bell mines in Arizona and restart the Hayden smelter and refinery, the head of the mining division, Leonardo Contreras, told analysts on a call.
The investment is far higher than recent spending on the unit, which totaled just $101 million in 2024, and marks a significant expansion in the U.S. market.
It follows news of a 2% fall in copper output during the third quarter due to lower production in the U.S. and Peru. Even so, the firm’s profits grew by 56% during this period to a net profit of US $2 billion, owing to robust base metal prices. Overall revenue increased by 38% to $6.33 billion, surpassing consensus estimates from analysts polled by LSEG.
Corporate leadership has revised the company’s copper production target downward to 1.026 million metric tonnes in 2026, from the previously targeted 1.034 million tonnes.
Contreras emphasized that work is continuing on expanding the Ray facility as feasibility studies are conducted. In addition, the company is “increasingly optimistic” about the restarting of Hayden, which has an annual processing capacity of 1.4 million metric tonnes of copper concentrate.
“That would represent almost 350,000 metric tonnes of contained copper,” Contreras said. “If that feeds into our refinery, we could be looking at 500,000 metric tonnes of copper.”
The Silver Bell project is also in the feasibility stage, according to Contreras.
Grupo México plans to assess the potential to integrate Mexican concentrates and U.S. copper scrap into U.S. operations, according to Itaú analysts.
Grupo México’s focus on Peru
Grupo México will also continue expanding operations in Peru.
Its long-term growth focuses closely on its Peru operations through its Southern Copper subsidiary, with the delayed flagship Tia Maria project expected to finally come online in the first half of 2028.
Southern Copper is developing two other projects in Peru — Los Chancas and Michiquillay, both of which are expected to commence operations in 2032 and are expected to produce 130,000 and 225,000 metric tonnes of copper a year, respectively.
With reports from Reuters, Mexico Business News and Mexico Now