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SUBSEQUENT EVENTS:
 6 Months Ended
Jun. 30, 2015
SUBSEQUENT EVENTS:  
SUBSEQUENT EVENTS:

 

NOTE 16 — SUBSEQUENT EVENTS:

 

Dividends:

 

On July 23, 2015 the Board of Directors authorized a quarterly dividend of $0.10 per share payable on August 27, 2015 to SCC shareholders of record at the close of business on August 13, 2015.

 

Acquisition of El Pilar copper project:

 

On July 6, 2015, Southern Copper successfully closed the acquisition of El Pilar from Stingray Copper for a total consideration of $100 million in cash. El Pilar is a fully permitted, low capital intensity copper development project strategically located in Sonora, Mexico, approximately 45 kilometers from the Company´s Buenavista mine and 15 kilometers from the U.S. border. Its copper oxide mineralization contains estimated proven and probable reserves of 259 million tons of ore with an average copper grade of 0.30%. El Pilar will operate as a conventional open-pit mine and copper cathodes will be produced using the highly cost efficient and environmentally friendly SX-EW technology. The project currently contemplates average annual production of 35,000 tons of copper cathodes over an initial 13-year mine life, with start of commercial operations forecasted by 2018. On a preliminary basis, the Company estimates a required development investment of approximately $300 million and an average life-of-mine cash-costs of approximately $1.60 per pound. In the second half of 2015, the Company will commence a confirmatory exploration program together with a detailed review of potential synergies with its existing operations.