KEY POINTS
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Grupo Mexico plans to invest $4bn to $6bn in US mining projects over three years.
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The company aims to expand Arizona mines and restart the Hayden smelter and refinery.
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Peru remains its long-term growth focus, despite delays to the Tia Maria project.
Grupo Mexico plans to increase investment in its United States copper operations, advancing major projects at its Asarco mining unit despite a decline in third-quarter copper production and uncertainty over potential US tariffs.
The Mexican mining and transportation conglomerate expects to spend between $4 billion and $6 billion over the next three years on key Asarco projects, mining head Leonardo Contreras told analysts on October 22, 2026.
The proposed investment would represent a significant increase from Asarco’s recent spending. The US unit invested just $101 million in 2024, although the planned outlay is consistent with Grupo Mexico’s previously discussed ambitions to expand its American operations.
The projects include expanding the Ray and Silver Bell mines in Arizona and potentially restarting the Hayden smelter and refinery. The investments would strengthen the company’s US copper production and processing capacity at a time when Washington is prioritising domestic supplies of critical minerals.
Arizona Mine Expansions Move Forward
Grupo Mexico is continuing work on the Ray mine expansion while conducting feasibility studies to assess the project’s development requirements.
The Silver Bell project is also undergoing feasibility studies, with the company expecting greater clarity on its prospects over the coming quarters.
The proposed developments form part of a broader effort to increase production from Asarco’s US assets. Grupo Mexico has been considering ways to bring more of its American mining capacity into operation as the US government seeks to reduce reliance on external sources of critical minerals.
The investment plans are moving forward despite uncertainty surrounding possible US tariffs. Analysts at Itaú said in September that Grupo Mexico’s management intended to proceed with Asarco investments while examining opportunities to integrate Mexican copper concentrates and US copper scrap into its operations.
Such integration could help the company make better use of available raw materials and strengthen links between its mining and processing businesses.
Hayden Restart Could Restore Major Processing Capacity
One of the most significant elements of the investment programme is the potential restart of the Hayden smelter and refinery.
Contreras said the company was becoming increasingly optimistic about reviving the facility, which could process 1.4 million metric tonnes of copper concentrate annually.
He said this volume would represent almost 350,000 metric tonnes of contained copper. If the material were subsequently processed through Grupo Mexico’s refinery, the company could potentially be looking at copper production of up to 500,000 metric tonnes.
The figures indicate the scale of the processing opportunity, although the proposed restart remains part of the company’s investment plans rather than a completed project.
Restoring Hayden’s operations would add processing capacity in the United States and complement the planned expansions at Ray and Silver Bell.
Copper Output Falls in Third Quarter
The investment announcement followed a weaker production performance, with Grupo Mexico reporting that copper output declined by approximately 2% in the third quarter.
Lower production from its US and Peruvian operations contributed to the drop.
The company’s shares fell by more than 4% on October 22, making them one of the weakest performers on the Mexican stock market that day. Copper prices also declined during the session.
Despite the market pressure and production setback, Grupo Mexico is pressing ahead with its US expansion plans, signalling that it remains committed to developing its American assets over the coming years.
Peru Remains Central to Long-Term Growth
Although the proposed US spending represents a substantial expansion effort, Grupo Mexico’s long-term growth strategy remains focused on Peru through its subsidiary Southern Copper.
The company’s flagship Tia Maria project has experienced another delay. Startup, previously expected in the fourth quarter of 2027, has been pushed back to the first half of 2028.
Southern Copper is also developing the Los Chancas and Michiquillay projects in Peru, both of which are expected to contribute significantly to the company’s future copper production.
Los Chancas is projected to produce 130,000 tonnes of copper annually, while Michiquillay is expected to deliver 225,000 tonnes a year. Both projects are currently scheduled to begin operating around 2032.
Together, the planned developments illustrate Grupo Mexico’s two-pronged growth strategy: increasing production and processing capacity in the United States while continuing to advance major projects in Peru to support longer-term copper supply.
