Grupo México plans to spend US$6 billion in Asarco

Mining giant Grupo México plans to invest between US$4 billion and US$6 billion over the next three years in key projects operated by its U.S. subsidiary, Asarco, an executive said Thursday, following a decline in third-quarter copper production reported earlier this week.

Copper production at Grupo México (GMEXICOB.MX), which also operates in the transportation and infrastructure sectors, totaled 260,322 metric tons in the third quarter, down 1.9% from the same period last year. The decline was driven by lower output in Peru and at Asarco in the United States, partially offset by increased production in Mexico, according to the company’s quarterly report.

Leonardo Contreras, head of the mining division, told analysts during a conference call that the company is moving forward with the expansion of its Ray Mine in Arizona, while feasibility studies for other projects are underway.

Contreras also said the company is becoming “increasingly optimistic” about restarting operations at the Hayden smelter and refinery in Arizona, which has the capacity to process 1.4 million metric tons of copper concentrate annually.

The project aims to restore copper processing capacity in the United States. “This would represent nearly 350,000 metric tons of copper content, and if it were incorporated into our refinery, we could reach 500,000 metric tons of copper,” Contreras said.

The executive added that Silver Bell, also located in Arizona, remains in the feasibility study phase. The company expects to gain greater clarity on the project in the coming quarters.