Bloomberg cited Mr Oscar Gonzalez Rocha CEO of Southern Copper as saying that Southern Copper Corporation which holds the world second largest reserves of the metal can easily double annual output to more than 1 million tonnes.

Mr Gonzalez said that Southern which expects to produce 500,000 tonnes 2009 plans to rise output 70% at its Peruvian mines by 2012. It may increase production further if parent company Grupo Mexico SAB regains control of US producer Asarco LLC.

He said that “Southern can become the world’s biggest copper producer. We can easily reach more than 1 million tonnes of production from mines in Mexico, Peru and the US.”

He added that Grupo Mexico lost control of Tucson, Arizona based Asarco after putting it under bankruptcy protection in 2005 and is now battling Sterlite Industries Limited. A Texas court may rule on who should control the company in days.

Mr Gonzalez said that Southern expects Peru’s government will approve studies for its USD 934 million Tia Maria copper mine before the end of 2009 allowing construction to begin in the Q1 of 2010. The mine, which will produce 120,000 tonnes annually, will start operating in mid 2011.

He said that “Before construction can begin, we need approval of the environmental impact study. Hopefully the local community will support the project at the next public hearing.”

Southern also plans to add 100,000 tonnes of annual production at its Toquepala mine by 2012 as part of USD 2.1 billion of investments in Peru the world’s third largest copper producer after Chile and the US.

(Sourced from Bloomberg)