SOUTHERN COPPER CORP

Previous wording

We believe we hold one of the world’s largest copper reserves and resources positions. As of December 31, 2023, our copper mineral reserves, calculated at a copper price of $3.30 per pound, totaled 97,082 million pounds of contained copper, at the following locations:

Current wording

We believe we hold one of the world’s largest copper reserves and resources positions. As of December 31, 2024, our copper mineral reserves, estimated at a copper price of $3.30 per pound, totaled 112,668 million pounds of contained copper, distributed in the following locations:

Previous wording

For 2024, we believe that prices will hold at the current level of about $19.00 per moly pound reflecting the supply/demand dynamics in a context of lower Asian production.

Current wording

For 2025, we believe that prices will hold at the current level of about $21.00 per pound due to a balanced market.

Previous wording

We also expect to produce 25,500 tonnes of molybdenum, which represents a decrease of 4.9% compared to 2023 production levels. In 2024, we expect to produce 20.7 million ounces of silver, and increase of 12.2% compared with 2023 production. Additionally, we expect to produce 117,800 tonnes of zinc from our mines, up 79.8% from 2023´s production level. This growth will be driven by start-up at the Buenavista Zinc concentrator (+54,400 tonnes). For 2025 and the coming years, we expect to produce over 170,000 tons of zinc per year on average.

Current wording

Regarding by products, we expect to produce 171,700 tonnes of zinc from our mines, up 32.0% from 2024 production level. This growth will be driven by the Buenavista Zinc concentrator (+40,700 tonnes). For 2025 and the coming years, we expect to produce over 170,000 tons of zinc per year on average. We expect to produce 26,200 tonnes of molybdenum, which represents a decrease of 9.7% compared to 2024 production levels. For silver, we expect to produce 23.1 million ounces of this metal, an increase of 10.1% compared to last year’s production.

Previous wording

For 2024, the Board of Directors approved a capital investment program of $1,103.7 million.

Current wording

For 2025, the Board of Directors approved a capital investment program of $1,598.0 million.

Previous wording

The slight increase in costs of sales in 2023 was driven primarily by higher expenses in various areas. While there was a slight increase in labor costs, contributing to a modest upward trend, the main sources of variation in costs came from higher expenses related to operating contractors and a slight increase in fuel costs, along with additional expenditures in sales expenses and inventory consumption. These results were mitigated by a drop in expenses, diven primarily by a decrease in copper purchased from third parties and a reduction in worker participation. In this context, the overall impact on the costs of sales was relatively moderate, with opposing factors balancing out variations.

Current wording

Costs of sales (exclusive of depreciation, amortization and depletion) increased slightly in 2024 driven primarily by upticks in various areas. The main sources of variation in costs came from higher expenses related to repair materials, labor and fuel costs. These results were partially mitigated by a decrease in copper purchased from third parties, energy costs and inventory variance. In this context, the overall impact on the cost of sales was relatively moderate, as opposing factors largely balanced out fluctuations, resulting in a 3.3% increase compared to the figures recorded in 2023.

Previous wording

In 2023, the net income attributable to SCC was $2,425.2 million, reflecting a 8.1% decrease from the 2022 net income. This decline was primarily driven by increased costs of sales and a minor reduction in sales volumes toward year-end. Net income attributable to SCC in 2022 was 22.3% below 2021’s net income; this was mainly due to higher costs of sales and a slight reduction in sales volumes.

Current wording

In 2024, net income attributable to SCC was $3,376.8 million, reflecting a 39.2% increase from the 2023 net income. This increase was primarily driven by increased sales volumes and a minor increase in interest income. Net income attributable to SCC in 2023 was 8.1% below 2022’s net income; this was mainly due to a reduction in sales volumes and a slight increase in costs of sales.

Previous wording

Copper mine production in 2023 increased 1.8% to 2,008.4 million pounds. This increase was primarily driven by an uptick in production levels at Toquepala (+11.6%; higher ore grades), Cuajone (+6.4%; higher ore grades) and IMMSA (+4.7%; higher ore grades). This was partially offset by reduction in production at the Buenavista and La Caridad mines which was mainly driven by a drop in ore grades, mineral processing and recovery.

Current wording

Copper mine production in 2024 increased 6.9% to 2,147.0 million pounds. This increase was primarily driven by an uptick in production levels at all our operations: Toquepala (+10.8%; higher ore grades and recoveries), Cuajone (+10.5%; higher volume of mineral processed), La Caridad (+5.6%; higher ore grades), Buenavista (+4.0%; higher ore grades and the contribution of Buenavista Zinc operations) and IMMSA (+2.0%; higher ore grades).

Previous wording

Molybdenum production increased 2.3 % to 59.2 million pounds, up from 57.8 million pounds in 2022. This increase was due to higher production at all our mines, with the exception of Toquepala mine (-17.8%), where grades and recoveries dropped.

Current wording

Molybdenum production increased 8.1% to 63.9 million pounds, up from 59.2 million pounds in 2023. This increase was due to higher production at all our mines, with the exception of La Caridad mine (-14.5%), where grades and recoveries dropped.

Previous wording

In our calculation of operating cash cost per pound of copper produced, we exclude depreciation, amortization and depletion, which are considered non-cash expenses. Exploration is considered a discretionary expenditure and is also excluded. Workers’ participation provisions are determined on the basis of pre-tax earnings and are also excluded. Additional exclusions from operating cash costs are items of a non-recurring nature and the mining royalty charge as it is based on various calculations of taxable income, depending on which jurisdiction, Peru or Mexico, is imposing the

Current wording

In our calculation of operating cash cost per pound of copper produced, we exclude depreciation, amortization and depletion, which are considered non-cash expenses. Exploration is considered a discretionary expenditure and is also excluded. Workers’ participation provisions are determined on the basis of pre-tax earnings and are also excluded. Additional exclusions from operating cash costs are items of a non-recurring nature and the mining royalty charge as it is based on various calculations of taxable income, depending on which jurisdiction, Peru or Mexico, is imposing the charge. We believe these adjustments will allow our management and stakeholders to see a presentation of our controllable cash cost, which we believe is one of the lowest of all copper-producing companies of similar size.

Previous wording

We are subject to market risks arising from the volatility of copper and other metals prices. For instance, during the period from January 2014 through December 2023, the London Metal Exchange (LME) copper settlement price varied from a low of $1.96 per pound in 2016 to a record high of $4.87 per pound in 2022, and the Metals Week Molybdenum Dealer Oxide weekly average price ranged from a low of $4.30 per pound in 2015 to a high of $38.50 per pound in 2023. Metal prices historically have been subject to wide fluctuations and are affected by numerous factors beyond our control, as described further in Item 1ARisk Factors. These factors, which affect each commodity to varying degrees, include international economic and political conditions, levels of supply and demand, the availability and cost of substitutes, inventory levels maintained by producers and others and, to a lesser degree, inventory carrying costs and currency exchange rates. In addition, the market prices of certain metals have on occasion been subject to rapid short-term changes due to economic concerns and financial investments.

Current wording

We are subject to market risks arising from the volatility of copper and other metals prices. For instance, during the period from January 2015 through December 2024, the London Metal Exchange (LME) copper settlement price varied from a low of $1.96 per pound in 2016 to a record high of $4.92 per pound in 2024, and the Metals Week Molybdenum Dealer Oxide weekly average price ranged from a low of $4.30 per pound in 2015 to a high of $38.50 per pound in 2023. Metal prices historically have been subject to wide fluctuations and are affected by numerous factors beyond our control, as described further in Item 1ARisk Factors. These factors, which affect each commodity to varying degrees, include international economic and political conditions, levels of supply and demand, the availability and cost of substitutes, inventory levels maintained by producers and others and, to a lesser degree, inventory carrying costs and currency exchange rates. In addition, the market prices of certain metals have on occasion been subject to rapid short-term changes due to economic concerns and financial investments.

Previous wording

For 2024, assuming that expected metal production and sales are achieved; 2023 tax rates are unchanged and giving no effects relative to potential hedging programs, metal price sensitivity factors indicate the following change in estimated annual net income attributable to SCC resulting from metal price changes:

Current wording

For 2025, assuming that expected metal production and sales are achieved; 2024 tax rates are unchanged and giving no effects relative to potential cost changes, metal price sensitivity factors indicate the following change in estimated annual net income attributable to SCC resulting from metal price changes:

Previous wording

Capital Investment Program: We made capital investments of $1,008.6 million in 2023 and $948.5 million in 2022. In general, the capital investments and projects described below are intended to increase production, decrease costs or address social and environmental commitments.

Current wording

Capital Investment Program: We made capital investments of $1,027.3 million in 2024 and $1,008.6 million in 2023. In general, the capital investments and projects described below are intended to increase production, decrease costs or address social and environmental commitments.

Previous wording

In 2024, we plan to invest $1,103.7 million in capital projects. In addition to our ongoing capital maintenance and replacement spending, our principal capital programs include the following:

Current wording

In 2025, we plan to invest $1,598.0 million in capital projects. In addition to our ongoing capital maintenance and replacement spending, our principal capital programs include the following:

Previous wording

El Pilar - Sonora: This low-capital intensity copper greenfield project is strategically located in Sonora, Mexico, approximately 45 kilometers from our Buenavista mine. Its copper oxide mineralization contains estimated proven and probable reserves of 317 million tonnes of ore with an average copper grade of 0.249%. We anticipate that El Pilar will operate as a conventional open-pit mine with an annual production capacity of 36,000 tonnes of copper cathodes. This operation will use highly cost efficient and environmentally friendly SX-EW technology. The budget for El Pilar is $310 million.

Current wording

El Pilar - Sonora: This low-capital intensity copper greenfield project is strategically located in Sonora, Mexico, approximately 45 kilometers from our Buenavista mine. Its copper oxide mineralization contains estimated proven and probable reserves of 317 million tonnes of ore with an average copper grade of 0.249%. We anticipate that El Pilar will

Previous wording

Project update: The results from experimental pads in the leaching process have confirmed adequate levels of copper recovery and we are evaluating different options to drive optimization. The basic engineering study has been completed and the Company is engaging in project development and onsite environmental activities. Project engineering is being developed by an external engineering and technology company. Mine life is estimated at 13 years.

Current wording

The results from experimental pads in the leaching process have confirmed adequate levels of copper recovery and we are evaluating different options for optimization. The Company is engaging in project development and on-site environmental activities. Mine life is estimated at 13 years.

Previous wording

Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards to produce 120,000 tonnes of SX- EW copper cathodes per year. The estimated capital budget for the project is $1.4 billion.

Current wording

Tia Maria - Arequipa: This greenfield project, located in Arequipa, Peru, will use state of the art SX-EW technology with the highest international environmental standards with a capacity of 120,000 tons of SX- EW copper cathodes per year.

Previous wording

Quebrada Honda dam expansion – Tacna: This project aims to enlarge the main and lateral dams in Quebrada Honda and includes the relocation and repowered of some facilities due to dam growth and implementation of other facilities for water recovery, among other factors. As of December 31, 2023, the drainage works and removal of Eolic material for the main and lateral dam, as well as complementary operational workshad been completed. We have also installed two cyclone nests for the main dam, which are currently operating. Additionally, purchases are pending for equipment for tailings hauling. We intend to build administrative facilities down the line. This project has a total budget of $165.0 million, of which we have invested $152.3 million as of December 31, 2023.

Current wording

Quebrada Honda dam expansion – Tacna: This project aims to enlarge the main and lateral dams in Quebrada Honda and includes the relocation and repowering of some facilities due to dam growth and development of other facilities for water recovery, among other factors. As of December 31, 2023, drainage works, removal of Eolic material for the main and lateral dam, and complementary operational workhad been completed. We have also installed two cyclone nests for the main dam, which are currently operating. Additionally, in 2024, equipment purchased to haul tailings arrived on site for operational use. To align with the increase in size of the tailings dam, we intend to build newadministrative facilities down the line. As of December 31, 2024, this project had been completed with an investment of $154.3 million, out of a total budget of $165.0 million.

Previous wording

We have a number of other projects that we may develop in the future. We continuously evaluate new projects on the basis of our long-term corporate objectives, strategic and operating fit, expected return on investment, required investment, estimated production, estimated cash-flow profile, social and environmental considerations, among other

Current wording

We have a number of other projects that we may develop in the future. We continuously evaluate new projects on the basis of our long-term corporate objectives, strategic and operating fit, expected return on investment, required investment, estimated production, estimated cash-flow profile, social and environmental considerations, among other factors. All capital spending plans will continue to be reviewed and adjusted to respond to changes in the economy and market conditions.

Previous wording

El Arco - Baja California: This is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of over 1,230 million tonnes with an average ore grade of 0.40% and 141 million tonnes of leach material with an average ore grade of 0.27%. The project includes an open-pit mine with a combined concentrator and SX-EW operations. Annual production is expected to total 190,000 tonnes of copper and 105,000 ounces of gold.

Current wording

El Arco - Baja California: This is a world-class copper deposit located in the central part of the Baja California peninsula with ore reserves of over 1,230 million tonnes with an average ore grade of 0.40% and 141 million tonnes of leach material with an average ore grade of 0.27%. The project includes an open-pit mine with a combined 120 ktpd concentrator and 28 ktpa SX-EW operations.

Previous wording

Los Chancas—Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit. Current estimates of indicated copper mineral resources are 98 million tonnes of oxides with a copper content of 0.45% and 52 million tonnes of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually. The estimated capital investment is $2,600 million and the project is expected to be in operation in 2030. We continue to engage in social and environmental improvements for the local communities and work on the project´s environmental impact assessment.

Current wording

Los Chancas—Apurimac: This greenfield project, located in Apurimac, Peru, is a copper and molybdenum porphyry deposit. Current estimates of indicated copper mineral resources are 98 million tons of oxides with a copper content of 0.45% and 52 million tons of sulfides with a copper content of 0.59%. The Los Chancas project envisions an open-pit mine with a combined operation of concentrator and SX-EW processes to produce 130,000 tons of copper and 7,500 tons of molybdenum annually. The estimated capital investment is $2,600 million and operations are expected to begin in 2031. We continue to engage in social and environmental improvements for the local communities and are working on the project’s environmental impact assessment.

Previous wording

Project update: In a coordinated effort with the Peruvian authorities the Company has made significant progress in eradicating illegal mining activities at our concession. Once this process is completed, we will restart environmental impact assessment; conduct a diamond drilling campaign for 40,000 meters; and initiate hydrogeological and geotechnical studies to gather additional information on the characteristics of the Los Chancas deposit.

Current wording

Project update: In coordination with the Peruvian authorities, efforts continue to eradicate illegal mining activities. Once this process has concluded, we will resume our environmental impact study and begin hydrogeological and geotechnical studies. We will also begin a resource verification drilling campaign of a 40,000-meter in-fill to gather additional information on the geological characteristics of the Los Chancas deposit.

Previous wording

Michiquillay Project—Cajamarca: In June 2018, Southern Copper signed a contract for the acquisition of the Michiquillay project in Cajamarca, Peru. Michiquillay is a world class mining project with inferred mineral resources of 2,288 million tonnes with an estimated copper grade of 0.43%. When developed, we expect Michiquillay to produce 225,000 tonnes of copper per year (along with by-products of molybdenum, gold and silver) for an initial mine life of more than 25 years and at a competitive cash-cost. We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032. Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region; generate new jobs for the local communities; and contribute with taxes and royalties to the local, regional and national governments.

Current wording

Michiquillay Project—Cajamarca: In June 2018, Southern Copper signed a contract for the acquisition of the Michiquillay project in Cajamarca, Peru. Michiquillay is a world-class greenfield mining project with inferred mineral resources of 2,288 million tons and an estimated copper grade of 0.43%. When developed, we expect Michiquillay to produce 225,000 tons of copper per year (along with by-products of molybdenum, gold and silver) at a competitive cash-cost for an initial mine life of more than 25 years. We estimate an investment of approximately $2.5 billion will be required and expect production start-up by 2032. Michiquillay will become one of Peru´s largest copper mines and will create significant business opportunities in the Cajamarca region; generate new jobs for the local communities; and contribute taxes and royalties to the local, regional and national governments

Previous wording

The Company has been consistently working to promote the welfare of the population of the Islay province. As part of these efforts, we have implemented successful social programs in education, healthcare and productive development to improve the quality-of-life in the region. We have also promoted agricultural and livestock activities in the Tambo Valley and supported growth in manufacturing, fishing and tourism in Islay.

Current wording

The company has consistently promoted the welfare of the population of the Islay province and the Arequipa region. As part of these efforts, we have also implemented several successful social programs in education, healthcare and productive development to improve the quality of life in the region.

Previous wording

and reflect our alignment with best international practices. The represents a significant step in our quest to obtain accreditation for responsible copper production in the framework of The Copper Mark certification.

Current wording

We have reaffirmed our commitment to maintain ISO-certified occupational health and safety management systems, and all units at SCC successfully passed follow-up audits for ISO 45001 and retained their certification in 2024. This represents a significant step in our quest to obtain accreditation for responsible copper production under The Copper Mark certification.

Previous wording

Southern Copper Corporation aims to fulfill the needs of future generations by promoting development that benefits all, both today and down the line. We are committed to continuously improving our environmental performance and to promoting the adoption of the best environmental practices at our operations to contribute to the transition to a green economy. To this end, we have certified all our operations environmental management systems in ISO 14001. We are also committed to preserving and improving the environment by implementing actions to generate a positive impact on biodiversity through our operations. To fulfil this commitment, which is outlined in the Company’s Environmental Policy, we have developed action plans for biodiversity management that are aligned with the guide for Good Practice Guidance for Mining and Biodiversity published by the International Council on Mining and Metals (ICMM). We believe these plans further improve the Company’s capacity to implement effective mitigation measures and contribute to the preservation and improvement of the environment at our operations.

Current wording

Southern Copper Corporation aims to fulfill the needs of future generations by promoting development that benefits all, both today and in the long-term. We are committed to continuously improving our environmental performance and to promoting the adoption of the best environmental practices at our operations to contribute to the transition to a green economy. To this end, we have achieved ISO 14001 certification for the environmental management systems at all our operations. We are also committed to preserving the environment by implementing actions to generate a positive impact on biodiversity through our operations. To fulfill this commitment, which is outlined in the Company’s Environmental Policy, we have developed action plans for biodiversity management that are aligned with the Good Practice Guidance for Mining and Biodiversity guide published by the International Council on Mining and Metals (ICMM). We believe these plans further improve the Company’s capacity to implement effective mitigation measures and contribute to the preservation and improvement of the environment at our operations.

Previous wording

Regarding our environmental risk management, we are aligning our tailings systems to the recently published ICMM's (International Council on Mining and Metals) Global Standard on Tailings Management and have improved our governance framework by implementing a brand-new Internal Committee for Review of Tailings Systems to bolster safety management and communication between operations and top management.

Current wording

Regarding our environmental risk management, we are aligning our tailings systems to the ICMM’s Global Standard on Tailings Management and have improved our governance framework by implementing an Internal Committee for Review of Tailings Systems to bolster safety management and communication between operations and top management.

Previous wording

With the purpose of increasing our water efficiency, we are currently recovering about six thousand cubic meters of water per day through the new tailings filtering plant in Quebrada Honda, Peru, which is equivalent to 0.6 m3 of water per ton of tailings. With a design capacity of 10,000 tons/day and an investment to date of $27 million, this dam filter is the largest tailings processing unit of its kind in the market.

Current wording

To increase our water efficiency, we are currently recovering about six thousand cubic meters of water per day through the new tailings filtering plant in Quebrada Honda, Peru, equivalent to 0.6 m3 of water per ton of tailings. With a design capacity of 10,000 tons/day and an investment to date of $27 million, this dam filter is the largest tailings processing unit of its kind in the market

Previous wording

Furthermore, in order to reduce our dependency on underground water, the Company is working to identify new sources of water to use in its processes, including recycling wastewater from urban areas. This constitutes a win-win scenario that generates sanitation solution for urban areas while reducing competition for water.

Current wording

Furthermore, to reduce our dependency on underground water, we are exploring new water sources for our processes, including recycling wastewater from urban areas. This approach offers a win-win scenario that generates sanitation solutions for urban areas while reducing competition for water.

Previous wording

In terms of biodiversity, in March 2023, the Environmental Management Unit at Buenavista del Cobre obtained certification from the Wildlife Habitat Council in recognition of our contributions to efforts to prevent the extinction of the Mexican grey wolf. Thanks to these actions, populations of this species, which was on the brink of extinction in the wild, have multiplied in their natural habitat in Mexico. Going forward, we will continue to work side-by-side with institutions and authorities to serve the common good in the regions in which we operate.

Current wording

We have also made progress in our commitment to protect biodiversity. In 2023, the Environmental Management Unit at Buenavista del Cobre received certification from the Wildlife Habitat Council, which recognized our contributions to efforts to prevent the extinction of the Mexican grey wolf. These actions have allowed populations of this critically endangered species to increase its numbers significantly within in their natural habitat in Mexico. Going forward, we will continue to work side-by-side with institutions and authorities to serve the common good in the regions in which we operate.

Previous wording

Southern Copper Corporation prioritizes being a good neighbor in the localities close to our operations. Working together with the communities, we have the opportunity to collaborate and forge a path based on common objectives for social and

Current wording

Southern Copper Corporation prioritizes being a good neighbor in the localities near our operations. Working together with the communities, we have the opportunity to collaborate and forge a path based on common objectives for social and economic development as we work to support the United Nations’ Sustainable Development Goals. We believe that community outreach must be based on transparency and trust and strive to promote long-lasting ties.

Previous wording

Our Community Development model has three components: 1) responsible coexistence: to foster a positive and healthy coexistence with our neighbor communities, and to have open and ongoing channels of communication to address complaints and concerns; 2) economic development: it is important to share the economic value our operations generate with the community, and 3) human development: to optimize the skills of members of the communities where we work, to ensure that these individuals become the principal drivers of development in their communities.

Current wording

Our Community Development model has three components: 1) responsible coexistence: to foster a positive and healthy coexistence with our neighbor communities, and to have open and ongoing channels of communication to address complaints and concerns; 2) economic development: it is important to share the economic value our operations generate

Previous wording

The primary tool to ensure a responsible coexistence is our grievance mechanism for external stakeholders (Community Attention Service) that operates at 100% of our sites and gives resolution to complaints in an average of three days.

Current wording

The primary tool to ensure a responsible coexistence is our grievance mechanism for external stakeholders (Service and Attention Center) that operates at 100% of our sites and resolves complaints in an average of five days.

Previous wording

For economic development, during 2023, we trained 2,087 people in mining communities: 833 for employment, 1,145 in regional vocational and productive skills and 109 from local businesses to support the development of small and medium mining suppliers. In addition, we recorded a 97% increase in year-to-year investment in social infrastructure. In Mexico $35.9 million was allocated to these efforts, including a project that was focused on improving water infrastructure for the communities of Cananea and Nacozari for the benefit of 54,000 people. In Peru, $45.7 million was invested in social infrastructure, including the progress in building the wastewater treatment plant (PTAR) in Ilo.

Current wording

In relation to economic development, we trained 1,326 people in mining communities in 2024, including 654 people in employment, 776 people in regional vocational and productive skills and 27 local businesses to support the development of small and medium mining suppliers. In addition, we recorded a 97% increase in year-to-year investment in social infrastructure. In Mexico, we allocated $6.6 million to these efforts, including a project focused on improving water infrastructure for 54,000 people in the communities of Cananea and Nacozari. In Peru, we invested $36.5 million in social infrastructure, including the progress in building the wastewater treatment plant (PTAR) in Ilo.

Previous wording

SCC recognizes the importance and urgency of tackling climate change, and the Company is committed to support the objective of the Paris Agreement on climate change, preserve the environment, minimize the environmental footprint of our operations, and efficiently manage climate-related risks and opportunities. We recognize that climate change will likely influence our strategy in various ways, and we aim to meet the expectations of the global business trends that are moving to demand products with lower carbon footprint. Our focus is to seek continuous improvement in the responsible use of natural resources while complying with applicable legal standards for prevention, mitigation, control and remediation of environmental impacts.

Current wording

SCC recognizes the importance and urgency of tackling climate change and is committed to supporting the objective of the Paris Agreement, preserving the environment, minimizing the environmental footprint of our operations, and efficiently managing climate-related risks and opportunities. We recognize that climate change will influence our strategy in various ways, and we aim to meet the expectations of the global business trends that are increasingly demanding products with lower carbon footprints. Our focus is to continuously improve the responsible use of natural resources while complying with legal standards for prevention, mitigation, control and remediation of environmental impacts.

Previous wording

The Company is committed to continually improve its management performance with respect to the aforementioned issues, which is why it has initiated a multi-year process to align its disclosures on climate change with the TCFD recommendations. As a result beginning in 2020, Grupo Mexico’s Sustainable Development Report included sections on climate-related risks and opportunities, and more detailed information about new short, medium and long term Scope 1 and 2 climate targets, strategy and governance mechanisms, as well as new emissions and energy metrics informed by SASB standards. In our 2023 Sustainability Development Report, we will include Scope 3 targets and preliminary capital allocation figures on decarbonization projects. The report can be accessed at https://www.gmexico.com/en/Pages/development.aspx. We are referring our investors to Grupo Mexico's internet site for details on the aforementioned initiatives for informative purposes only. We do not intend for this internet link to be an active link or to otherwise incorporate the contents of the website into this Report on Form 10-K.

Current wording

In our commitment to improving performance on these critical issues, we have embarked on a multi-year process to align our climate change disclosures with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). Since 2020, Grupo Mexico’s Sustainable Development Report has included sections on climate-related risks and opportunities, more detailed information about new short-, medium- and long-term Scope 1 and 2 climate targets, strategy and governance mechanisms, and new emissions and energy metrics informed by Sustainability Accounting Standards Board (SASB) standards. In our 2023 Sustainability Development Report, we included Scope 3 targets and preliminary capital allocation figures on decarbonization projects. The report can be accessed at https://www.gmexico.com/en/Pages/development.aspx. We are referring our investors to Grupo Mexico's website for details on these initiatives for informative purposes only. We do not intend for this internet link to be an active link or to otherwise incorporate the contents of the website into this Report on Form 10-K.

Previous wording

Additionally, we have participated in the sustainability evaluation carried out by S&P Global through the CSA since 2020. In climate governance, we obtained in 2023 a rating of 90 out of 100, ratifying the progress that the company has made in this area, mainly associated to the publication of our Climate Policy and the supervision of the implementation of our climate change strategy, including the management of risks and opportunities associated with climate change by the Sustainable Development Committee at the Board level of Southern Copper Corporation. Also, we achieved a score of 100 in the TCFD category, which focuses on the management and disclosure of financial risks and opportunities related to climate change. In addition, the investor-led Climate Action 100+ initiative recognized the establishment of our emissions reduction roadmap and gave us a full compliance rating in the TCFD category.

Current wording

The execution of our climate strategy has allowed us to significantly improve our performance in several climate evaluation initiatives. In the sustainability evaluation conducted by S&P Global through the Corporate Sustainability Assessment (“CSA”) in which we have participated in this assessment since 2020, we scored 90 out of 100 for climate governance once again in 2024, which ratifies the progress we have made since 2023. This high rating recognized our efforts to publish our Climate Policy and our on-going supervision of the implementation of our climate change strategy, which evaluates management of the risks and opportunities associated with climate change by the Sustainable Development Committee at the Board level of Southern Copper Corporation. In a repeat of last year’s performance, we scored 100 in the Task Force on Climate-related Financial Disclosures (“TCFD”) category in 2024, which assesses management and disclosure of financial risks and opportunities related to climate change.

Previous wording

We obtained a score of 90 out of 100 on CSA’s climate governance index. This attests to the progress the Company has made in this area. Additionally, we achieved a score of 100 in the Task Force on Climate-Related Disclosures (TCDF) category, which focuses on management and disclosure of financial risks and opportunities related to climate change. Additionally, the investor-led Climate Action 100+ initiative recognized our efforts to develop an emissions reduction roadmap and awarded us a full compliance rating in the Task Force on Climate-Related Financial Disclosures (TCFD) category. Furthermore, the rating agency Sustainalytics reduced the Company's risk by two levels between 2020 and 2023.

Current wording

In addition, the investor-led Climate Action 100+ initiative recognized our efforts to develop an emissions reduction roadmap and gave us a full compliance rating in the TCFD category for the second consecutive year.

Previous wording

Since 2016, SCC has been participating annually in the evaluation on Climate Change of CDP and in 2022, for the first time in the evaluation of Water Security. In both questionnaires we achieved “B” result (third best score on a scale of eight levels), which is one level above the mining sector average score and the North America region overall score.

Current wording

Since 2016, SCC has been participating in Carbon Disclosure Project (“CDP”) annual evaluation of Climate Change, and in 2022, we participated in our first evaluation of Water Security. In 2024, our 2023 results for both questionnaires were “B” (third best score on a scale of eight levels), which is one level above the average score in the mining sector and the overall score for the North American region.

Previous wording

In 2024, we will continue to identify further financial impacts related to the climate risks and opportunities that our company will face in the future.

Current wording

In 2025, we will develop climate change mitigation and adaptation plans at the site level; evaluate the role that nature-based solutions could play in reducing our operational emissions; and continue to identify the financial impacts that our company will face in the future with regard to climate risks and opportunities.

Previous wording

At SCC we are committed to enforcing the United Nations Guiding Principles on Business and Human Rights. We have a series of policies and procedures that serve as a guide to all employees and suppliers: General Human Rights Policy; Policy of Respect for the Rights of Indigenous Peoples and Communities; Diversity, Inclusion and Non-Discrimination, No Workplace or Sexual Harassment Policy; and the Code of Conduct for Suppliers, Contractors and Relevant Business Partners, which includes several sections related to human rights.

Current wording

At SCC, we are committed to enforcing the United Nations Guiding Principles on Business and Human Rights. We have a series of policies and procedures that serve as a guide to all employees and suppliers, and the Code of Conduct for Suppliers, Contractors and Relevant Business Partners, which includes several sections related to human rights.