Grupo Mexico Boosts Copper and Zinc Output in Q4, Plans $600mn 2025 Investment

Grupo Mexico

Buenavista Expansion and Strong Prices Lift Revenues Despite Toquepala Setback

Grupo Mexico increased its copper and zinc production in the fourth quarter of 2024, supported by operational gains at its Buenavista, Cuajone, and IMMSA units. Copper output reached 266,400 metric tonnes (t), up slightly from 264,300t in Q4 2023, while zinc production more than doubled, rising to 43,150t from 16,930t a year earlier.

Copper production growth was driven by a 12% increase at the Buenavista mine, complemented by moderate gains at IMMSA (+3.5%) and Cuajone (+2.1%). However, these increases were partially offset by an 11.4% decline at the Toquepala mine in Peru. Despite mixed volumes, copper sales rose by 2.2% to 253,250t, supported by a 13.4% year-on-year price gain to $4.22/lb, based on Comex data.

Zinc Production Surges with Buenavista Launch and Santa Barbara Growth

The standout performance in Q4 came from zinc. Grupo Mexico more than doubled zinc production following the start-up of its Buenavista zinc operation and improved throughput at Santa Barbara. Sales volumes surged by over 59% to 42,119t. The fourth-quarter average zinc price also increased by 22.1% to $1.38/lb, based on LME figures.

Molybdenum output fell slightly to 6,994t due to weaker performance at Caridad and Toquepala, with sales also down 2.1% to 7,008t. Despite this, Grupo Mexico’s mining division, operated under Americas Mining Corporation, reported Q4 revenues of $2.97bn, up 17.4%, while profit surged by 51.5% to $673mn.

2025 Capital Plan Targets Modernization, Tailings Efficiency, and Greenfield Growth

Grupo Mexico plans to invest over $600mn across its mining operations in 2025. Roughly half will fund modernization of existing mines and metallurgical facilities, while 31% will go toward improving water and tailings efficiency. The remaining investments will support long-term growth projects, including a new 120,000t/yr copper SX-EW plant in Arequipa, Peru. Construction is scheduled to start in 2025, with operations expected by 2027.

In total, the conglomerate’s fourth-quarter profit rose by 19% to $757mn, with revenues climbing 12.8% to $3.85bn. Grupo Mexico operates across mining, rail, and infrastructure sectors, with mining activities led by Southern Copper in Mexico and Peru, and Asarco in the United States.