<SEC-DOCUMENT>0001104659-13-045096.txt : 20130830
<SEC-HEADER>0001104659-13-045096.hdr.sgml : 20130830
<ACCEPTANCE-DATETIME>20130528171954
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-13-045096
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20130528

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOUTHERN COPPER CORP/
		CENTRAL INDEX KEY:			0001001838
		STANDARD INDUSTRIAL CLASSIFICATION:	METAL MINING [1000]
		IRS NUMBER:				133849074
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1440 E. MISSOURI AVENUE
		STREET 2:		SUITE 160
		CITY:			PHOENIX
		STATE:			AZ
		ZIP:			85014
		BUSINESS PHONE:		602-264-1375

	MAIL ADDRESS:	
		STREET 1:		1440 E. MISSOURI AVENUE
		STREET 2:		SUITE 160
		CITY:			PHOENIX
		STATE:			AZ
		ZIP:			85014

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SOUTHERN PERU COPPER CORP/
		DATE OF NAME CHANGE:	19960726

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SOUTHERN PERU COPPER HOLDING CO
		DATE OF NAME CHANGE:	19951006
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive Presidency</font></p>    </td>   </tr>  </table>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">May&nbsp;28, 2013</font></p>
<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ms.&nbsp;Tia L. Jenkins</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Assistant Chief Accountant</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">United States Securities and Exchange Commission</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Office of Beverages, Apparel and Mining</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, D.C. 20549-7010</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Re:</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Southern Copper Corporation</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;10-K for Fiscal Year Ended December&nbsp;31, 2012</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Filed February&nbsp;28, 2013</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">File No.&nbsp;001-14066</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Ms.&nbsp;Jenkins:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On behalf of Southern Copper Corporation (the &#147;Company&#148;),&nbsp;I, Oscar Gonzalez Rocha, the Company&#146;s President and Chief Executive Officer, submit our response to your letter dated May&nbsp;15, 2013, relating to the above-referenced filing.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To assist in the Staff&#146;s review of the Company&#146;s responses, we have preceded our response with the text (in bold type) of the comment as stated in your letter.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;10-K for the Year Ended December&nbsp;31, 2012</font></u></b></p>
<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 8. Financial Statements and Supplementary Data, page&nbsp;100</font></u></b></p>
<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Notes to Consolidated Financial Statements, page&nbsp;106</font></u></b></p>
<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 2- Summary of Significant Accounting Policies &#151; Revenue Recognition, page&nbsp;106</font></u></b></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1. Considering the significance of your non-copper sales representing 23% of your total sales for the fiscal year ended December&nbsp;31, 2012, please provide us with, and confirm that in future filings you will disclose, how you (a)&nbsp;classify revenue from non-copper sales and (b)&nbsp;account for these products (e.g., by-product accounting or co-product accounting,&nbsp;etc.). In addition, please tell us and include in your future Management&#146;s Discussion and Analysis (a)&nbsp;whether you expect historic trends of your non-copper revenue to continue and (b)&nbsp;identify and discuss the factors that have an effect on the amount of revenue from non-copper sales (e.g., commodity prices,&nbsp;etc.).</font></b></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SOUTHERN COPPER CORPORATION</font></b></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1440 E. Missouri Avenue, Suite&nbsp;160, Phoenix, AZ 85014</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phone: 1 (602) 264-1375&#160; &#151;&#160; Fax: 1 (602) 264-1397</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">www.southerncoppercorp.com</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1<a name="PB_1_221249_7056"></a></font></p>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We appreciate the Commission&#146;s comment and in future filings we will expand our revenue recognition and inventories accounting policies in Note 2 &#147;Summary of Significant Accounting Policies&#148; as follows (changes are underlined):</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&#147;Revenue recognition&#151;</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Substantially all of the Company&#146;s copper <u>and non-copper products are</u> sold under annual or other longer-term contracts.</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Revenue is recognized when title and risk of loss passes to the customer.&#160; The passing of title is based on terms of the contract, generally upon shipment.&#160; Copper <u>and non-copper</u> revenues <u>are</u> determined based on the monthly average of prevailing commodity prices according to the terms of the contracts.&#160; The Company provides allowances for doubtful accounts based upon historical bad debt and claims experience and periodic evaluation of specific customer accounts.</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">For certain of the Company&#146;s sales of copper and molybdenum products, customer contracts allow for pricing based on a month subsequent to shipping, in most cases within the following three months and occasionally in some cases a few additional months.&#160; In such cases, revenue is recorded at a provisional price at the time of shipment.&#160; The provisionally priced copper sales are adjusted to reflect forward LME or COMEX copper prices at the end of each month until a final adjustment is made to the price of the shipments upon settlement with customers pursuant to the terms of the contract.&#160; In the case of molybdenum sales, for which there are no published forward prices, the provisionally priced sales are adjusted to reflect the market prices at the end of each month until a final adjustment is made to the price of the shipments upon settlement with customers pursuant to the terms of the contract.</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">These provisional pricing arrangements are accounted for separately from the contract as an embedded derivative instrument under ASC 815-30 &#147;Derivatives and Hedging &#151; Cash Flow Hedges.&#148;&#160; The Company sells copper in concentrate, anode, blister and refined form at industry standard commercial terms.</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Net sales include the invoiced value of <u>copper, zinc, silver, molybdenum, sulfuric acid and other metals </u>and the corresponding fair value adjustment of the related forward contract <u>of copper and molybdenum.</u>&#148;</font></i></p>
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<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&#147;Inventories&#151;</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The Company principally produces copper and, in the production process, obtains several by-products, including molybdenum, silver, zinc, sulfuric acid and other metals</font></u></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">.</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Metal inventories, consisting of work&#151;in-process and finished goods, are carried at the lower of average cost or market.&#160; Costs incurred in the production of metal inventories exclude general and administrative costs.&#160; <u>Cost of molybdenum, silver, zinc and other by-products, includes the incremental cost required to produce these products, which are reported separately once the by-products are identified and transferred to the respective production facility. </u></font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Work-in-process inventories represent materials that are in the process of being converted into a saleable product.&#160; Conversion processes vary depending on the nature of the copper ore and the specific mining operation as well as the incremental process required to complete each by-product.</font></i></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2<a name="PB_2_221311_5335"></a></font></p>
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Finished goods include saleable products (e.g., copper concentrates, copper anodes, copper cathodes, copper rod, molybdenum concentrate and other metallurgical products).</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Supplies inventories are carried at the lower of average cost less a reserve for obsolescence or market.</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We currently include in our &#147;Management&#146;s Discussion and Analysis &#151; Outlook&#148; a discussion of what we expect in terms of revenue trends and factors that may have an impact on revenue for molybdenum, silver and zinc, our three major non-copper by-products as follows.&#160; In future filings we will expand this disclosure to provide additional information as necessary.&#160; Please see the section below where minor changes have been underlined.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><b><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Outlook</font></u></i></b><b><i><font size="2" style="font-size:10.0pt;font-style:italic;font-weight:bold;">: </font></i></b><i><font size="2" style="font-size:10.0pt;font-style:italic;">Various key factors will affect our outcome.&#160; These include, but are not limited to, some of the following:</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .35in;text-indent:-.1in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">Changes in copper and molybdenum, <u>silver and zinc prices</u>: The average LME and COMEX copper price was $3.61 per pound in 2012, about 10% lower than in 2011.&#160; Average silver and zinc prices in 2012 decreased about 11% and molybdenum decreased about 18% compared to 2011.</font></i></p>
<p style="margin:0in 0in .0001pt 27.0pt;text-indent:-9.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .35in;text-indent:-.1in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="2" style="font-size:10.0pt;">  <i>Sales structure: In the last three years approximately 75.7% of our revenues came from the sale of copper, 9.0% from molybdenum, 7.0% from silver and 8.3% from various other products, including zinc, sulfuric acid, gold and other materials.</i></font></p>
<p style="margin:0in 0in .0001pt 27.0pt;text-indent:-9.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .35in;text-indent:-.1in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="2" style="font-size:10.0pt;">  <i>Metal markets: During the fourth quarter 2012 metal markets continued to be driven by the negative macroeconomic events that affected consumer expectations, the more significant being Europe&#146;s debt crisis, the &#147;fiscal cliff&#148; that affected the U.S. economy and the slowdown of China&#146;s economy.&#160; 2012 was also a transition year, with administration changes or elections in several key countries, including China and the United States.</i></font></p>
<p style="margin:0in 0in .0001pt 27.0pt;text-indent:-9.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .35in;text-indent:-.1in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="2" style="font-size:10.0pt;">  <i>Copper: We believe the copper market fundamentals are sound, however, demand has been affected by macroeconomic factors and the economic slowdown noted in the previous paragraph.&#160; At present, we perceive a more positive environment as some of these matters have been solved or are perceived to have a more positive outlook from now on.</i></font></p>
<p style="margin:0in 0in .0001pt 27.0pt;text-indent:-9.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .35in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">In China, after several monetary easing measures were taken in the second half of 2012, some analysts expect growth in Chinese copper demand of approximately 8.5%, for 2013, better than the 5% growth estimated for 2012. According to them, China represented 41% of the world demand in 2012. The expected strong growth in China and other emerging economies should give support to the copper market in 2013.</font></i></p>
<p style="margin:0in 0in .0001pt 27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .35in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">In the United States demand appears to be stronger as consumer confidence has increased and the economy is recovering. This has been reinforced by positive news related to housing and employment that seem to have offset concerns related to the fiscal balance. Even though the United States represents today about 8% of the world demand for refined copper, the recovery of its economy is key to copper demand since the United States is the most important secondary copper consumer, affecting copper demand in other economies.&#160; Finally, after a severe 2012, where European demand is estimated to have decreased by approximately 7%,</font></i></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3<a name="PB_3_221514_5796"></a></font></p>
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<p style="margin:0in 0in .0001pt .35in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">there are signs indicating a copper demand increase of 2%. It should be mentioned that Europe now represents approximately 19% of the world demand for refined copper.</font></i></p>
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<p style="margin:0in 0in .0001pt .35in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">On the supply side, we understand that several structural factors, such as labor stoppages, technical problems and other issues are still affecting copper supply, which we believe will very likely result in weak supply growth in 2013, even though we will see several projects coming into operation by year-end or in 2014. We believe SCC is positioned to take advantage of this unsettled situation, through our investment program of organic growth, aimed at increasing production from our current capacity of 640,000 tons to 1.2 million tons by 2017.</font></i></p>
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<p style="margin:0in 0in .0001pt .35in;text-indent:-.1in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="2" style="font-size:10.0pt;">  <i>Molybdenum: We saw a 2.6% molybdenum demand growth in 2012, which helped to reduce the surplus of supply to demand from approximately 8% to 6%. We expect that in 2013 the balance between supply and demand will continue reducing the market surplus, thereby improving molybdenum prices in the near future <u>and, potentially, revenue for us</u>.</i></font></p>
<p style="margin:0in 0in .0001pt 27.0pt;text-indent:-9.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .35in;text-indent:-.1in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="2" style="font-size:10.0pt;">  <i>Silver: We believe that silver prices will have strong support due to its industrial uses as well as being perceived as a value shelter in times of economic uncertainty<u>, which may present an opportunity for revenue growth for us</u>.</i></font></p>
<p style="margin:0in 0in .0001pt 27.0pt;text-indent:-9.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .35in;text-indent:-.1in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="2" style="font-size:10.0pt;">  <i>Zinc: We also believe that zinc has very good long term fundamentals due to its significant industrial consumption; however, inventories are currently at a relatively high level, which tends to maintain a relatively weak zinc price <u>and limit our opportunities for revenue growth for this metal</u>.</i></font></p>
<p style="margin:0in 0in .0001pt 27.0pt;text-indent:-9.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Schedule 14A Filed March&nbsp;25, 2013</font></u></b></p>
<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Compensation Discussion and Analysis, page&nbsp;12</font></u></b></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2. We note the statement on page&nbsp;14 that you &#147;grant relatively small salary increases commensurate with the cost of living increases in Peru and Mexico and tailor the amount of the incentive cash payments to balance the amounts of compensation mandated by Peruvian and Mexican law.&#148; We also note that compensation paid to your Chief Operating Officer changed significantly from fiscal year 2011 to fiscal year 2012. It is unclear from the compensation discussion and analysis what, if any, specific items of corporate performance were taken into account in making this compensation decision. It is also unclear how you exercised discretion in setting cash bonus awards, including whether any such discretion was applied to one or more specified named executive officers. Please confirm that in future filings your compensation discussion and analysis will include a discussion of the reasons for any material increase or decrease in the total compensation or particular components of compensation, if applicable, of your named executive officers. See, for example,&nbsp;Items 402(b)(2)(vi)&nbsp;and (ix)&nbsp;of Regulation S-K. Please provide draft disclosure.</font></b></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We appreciate the Commission&#146;s comments and in future filings we will expand our discussion of the reason for any material increase or decrease in the total compensation or in particular components of compensation, if applicable, to our named executive officers.</font></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4<a name="PB_4_222143_7056"></a></font></p>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As disclosed in our 2013 Proxy Statement, Mr.&nbsp;Xavier Garcia de Quevedo Topete, our Chief Operating Officer, received in 2012 bonuses of $717,706, which include a cash bonus granted under the Executive Stock Purchase Plan of Grupo Mexico S.A.B. de C.V., the indirect parent company of the Company (&#147;Grupo Mexico&#148;).</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Grupo Mexico offers the Executive Stock Purchase Plan, a stock purchase plan of its own shares, to certain members of its executive management and the executive management of its subsidiaries and certain affiliated companies.&#160; Under the Executive Stock Purchase Plan participants receive incentive cash bonuses that are used to purchase shares of Grupo Mexico, which are deposited in a trust.&#160; Mr.&nbsp;Xavier Garcia de Quevedo Topete received a cash bonus paid by the Company of $601,132 in 2012 to purchase shares of Grupo Mexico under the Executive Stock Purchase Plan. This cash bonus was reflected in the Summary Compensation table of the 2013 Proxy Statement under the bonus column. Mr.&nbsp;Xavier Garcia de Quevedo Topete received an additional cash bonus of $116,574. This additional bonus was also reflected in the Summary Compensation table of the 2013 Proxy Statement under the bonus column. Mr.&nbsp;Xavier Garcia de Quevedo Topete&#146;s bonuses were entirely discretionary in nature and not based on any pre-established performance targets or on targets that were previously communicated to him.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">From time to time, larger cash bonuses are granted to our named executive officers in recognition of the named executive officer&#146;s performance during the year and to reward him for his leadership, vision and focus, as determined in the discretion of our management team and our Compensation Committee.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Discretionary bonuses are granted to our named executive officers, including Mr.&nbsp;Xavier Garcia de Quevedo Topete, after a thorough analysis of numerous factors, including among others, our financial performance, our liquidity, our capital investment plan, the responsibilities and performance of each named executive officer or employee measured in the areas of production, expansions and project developments, safety and environmental responsiveness (both individually and as compared to other officers or employees of the Company).&#160; Mr.&nbsp;Xavier Garcia de Quevedo Topete&#146;s 2012 discretionary cash bonus rewarded him for his excellent performance and leadership during the year.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Similarly, in 2009, Mr.&nbsp;Xavier Garcia de Quevedo Topete received a cash bonus to purchase shares of Grupo Mexico under the Executive Stock Purchase Plan in recognition of his performance and leadership during 2009.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In future filings we will clarify our bonus policy as follows:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&#147;The payment of bonuses is discretionary and we do not necessarily pay bonuses every year. The payment of bonuses and the amount of the same depend, among other things, on our financial performance, our intensive capital investment plan, our future cash flow generation from operations, and our liquidity in general.&#160; We do not provide compensation tied to specific pre-determined individual or Company performance criteria or long-term incentive compensation. The cash incentive payments granted to our executives and non-executive employees are not</font></i></p>
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<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">based on pre-established performance targets or on targets that have been previously communicated to the executives or the employees. The granting of specific awards and the amount of each award are discretionary and substantially uncertain until we decide to award them, generally at the beginning of each year.</font></i></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The decisions to grant salary increases and bonuses for the named executive officers of the Company and for non-executive employees are made by our management team and our Compensation Committee after a thorough analysis of numerous factors, including among others, the responsibilities and performance of each named executive officer or employee measured in the areas of production, expansions and project developments, safety and environmental responsiveness (both individually and as compared to other officers or employees of the Company).&#160; It is our practice to grant relatively small salary increases to our named executive officers commensurate with the cost of living increases in Peru and Mexico and tailor the amount of the incentive cash payments to balance the amounts of compensation mandated by Peruvian and Mexican law, principally the amounts received by the named executive officers as profit participations. Generally, in years in which the profit participation amounts paid to named executive officers are high, the bonus or incentive cash payments will be lower than in years in which the profit participation amounts are relatively modest. In such years, where the profit participation amounts are modest, if our financial conditions permit, we tend to increase the amount paid in cash incentives.&#160; Without limiting this, from time to time, larger discretionary cash bonuses are granted to our named executive officers in recognition of a particular named executive officer&#146;s performance during the year and to reward him for his leadership, vision and focus.&#148;</font></i></p>
<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Summary Compensation Table, page&nbsp;22</font></u></b></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3. We note that you have not disclosed compensation paid to Mr.&nbsp;Genaro Guerrero Diaz Mercado for his services to the company in 2012, 2011 and 2010 because such compensation was paid by a subsidiary of Grupo Mexico. With a view to revised disclosure, please tell us your basis for excluding compensation paid to Mr.&nbsp;Genaro Guerrero Diaz Mercado for his services to the company.</font></b></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Genaro Guerrero Diaz Mercado, our Chief Financial Officer from January&nbsp;2, 2008 until April&nbsp;18, 2013, did not receive compensation paid by the Company in 2010, 2011 and 2012.&#160; Mr.&nbsp;Genaro Guerrero Diaz Mercado received compensation from a subsidiary of Grupo Mexico.&#160; In addition to serving as Chief Financial Officer of the Company, Mr.&nbsp;Genaro Guerrero Diaz Mercado also served as Vice President, Finance of Ferrocarril Mexicano S.A. de C.V., a subsidiary of Grupo Mexico.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Genaro Guerrero Diaz Mercado split his time between Ferrocarril Mexicano S.A. de C.V. and the Company without spending 100% (or near 100%) of his time on services to the Company.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, we have disclosed in the respective Forms 10-K and in Proxy Statements that we paid in each of 2010, 2011 and 2012 to Grupo Mexico $13.9 million for various services</font></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6<a name="PB_6_222211_5796"></a></font></p>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">rendered to us. These services are primarily related to accounting, legal, tax, financial, treasury, human resources, price risk assessment and hedging, purchasing, procurement and logistic, sales and administrative and other support services and, in particular, these services include financial services such as those rendered by Mr.&nbsp;Genaro Guerrero Diaz Mercado to our Company. As noted above, we pay Grupo Mexico for these services.</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We believe that it is appropriate to omit the compensation paid to Mr.&nbsp;Genaro Guerrero Diaz Mercado by the Company&#146;s affiliate pursuant to the above-described arrangement with Grupo Mexico.&#160; In any event, as reported to the Commission in a Form&nbsp;8-K dated April&nbsp;19, 2013, Mr.&nbsp;Genaro Guerrero Diaz Mercado resigned and was replaced by Mr.&nbsp;Raul Jacob on April&nbsp;18, 2013.&#160; The compensation of Mr.&nbsp;Raul Jacob is entirely paid by the Company and will be reported as required in future filings.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .25in;text-indent:-16.35pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Closing Comments</font></u></b></p>
<p style="margin:0in 0in .0001pt .25in;text-indent:-16.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As requested in your letter, Southern Copper acknowledges the following:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Southern Copper is responsible for the adequacy and accuracy of the disclosure in the filings discussed herein;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filings discussed herein; and</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Southern Copper may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal security laws of the United States.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Should you have any questions about the responses in this letter, kindly contact our Chief Financial Officer, Mr.&nbsp;Raul Jacob at +(602) 264-1375 option 1 or our General Counsel, Mr.&nbsp;Javier Gomez at +52-55-1103-5127.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly yours,</font></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Oscar Gonzalez Rocha</font></p>    </td>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Oscar Gonzalez Rocha</font></p>    </td>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and Chief Executive Officer</font></p>    </td>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
