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Grupo Mexico evaluates US investments following the reduction of copper tariff

A senior executive of Grupo Mexico, the world's largest copper producer, said in a Wednesday call that the company is planning to invest in projects within the United States over the next three to five year period. This comes as Washington prepares tariffs for some copper products.

After an order by President Trump, the price of U.S. Copper plunged on Tuesday.

The shortfall

Copper input materials like ores, concentrates, and cathodes were not included in the expected sweeping restrictions.

Grupo Mexico said earlier that it saw the proposed tariffs for Mexico as an

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Asarco's local subsidiary in Arizona is investing $6 billion to expand copper projects, including the reopening of a closed smelting facility.

Leonardo Contreras told analysts on a conference call that, "We're constantly evaluating whether or not we should restart our Hayden operations" in light of recent developments.

Contreras said, "We will continue monitoring how these global shifts happen on a day-to-day basis."

The tariff was meant to encourage domestic development, but the United States relies on imports to meet nearly half its refined copper requirements. Homegrown projects can take many years to be completed.

Currently, the main suppliers are Chile, Canada, and Mexico, although China is their largest buyer.

Grupo Mexico stated that while the trade war between China and the U.S. could have an impact on global economic growth, and therefore demand for copper in Asia, it still maintained a “very positive” outlook for the long-term growth of copper in Asia. (Reporting and editing by Natalia Siniawski; Sarah Morland)

(source: Reuters)