Southern Copper (SCCO) 8-K Southern Peru Copper Corporation Starts the Modernization Project of Its Ilo Smelter

Exhibit 99.2

FOR IMMEDIATE RELEASE

SPCC REPORTS 2003 SECOND QUARTER RESULTS

NEW YORK, N.Y. July 23, 2003 - Southern Peru Copper Corporation (NYSE and LSE: PCU) today reported net earnings of $21.6 million, or diluted earnings per share of 27 cents, for the second quarter of 2003 compared with $26.8 million, or diluted earnings per share of 34 cents, for the second quarter of 2002.  For the first half of 2003, net earnings were $40.0 million, or diluted earnings per share of 50 cents after the cumulative effect of a change in accounting principle, which reduced earnings per share by 2 cents, compared to $31.4 million, or diluted earnings per share of 39 cents for the first half of 2002.

Sales of products were $168.4 million in the second quarter of 2003 compared with $193.4 million in the second quarter of 2002.  Sales of products for the first half of 2003 totaled $343.2 million compared with $329.6 million for the same period of the previous year.

The average price for copper on the London Metal Exchange (LME) in the second quarter of 2003 was 74 cents per pound compared with 73 cents for the same period in the prior year.  The average price for copper on the New York Commodity Exchange (COMEX) in the second quarter of 2003 was 75 cents per pound, compared with 74 cents per pound in the second quarter of 2002.  The average price for molybdenum, one of the Company’s principal by-products, was $5.21 per pound in the second quarter of 2003, compared with $4.35 for the same period of 2002.  The price of silver, another principal by-product was $4.59 per ounce on the COMEX in the second quarter of 2003, compared with $4.73 in the second quarter a year ago.

Mine copper production increased 17% to 204.0 million pounds in the second quarter of 2003 compared with the second quarter of last year.  This increase of 30.3 million pounds included 17.1 million pounds from the Toquepala mine, 16.0 million pounds from the Cuajone mine and a decrease of 2.8 million pounds in solvent extraction/electrowinning (SX/EW) production. The Toquepala mine increase in production was due to the higher concentrator capacity.  The Toquepala mill processed 30% more ore in the 2003 period.  The Cuajone mine increase in production was due to higher ore grades and improved copper recovery at concentrator in the 2003 period.  The main reason for the 2.8 million pound decrease in SX/EW production was lower PLS grade.

Reporting on the Company’s results and the expansion and modernization programs, Mr. Oscar González Rocha, President and General Director of SPCC said, “Southern Peru’s 2003 second quarter production was significantly higher than the second quarter of 2002.  This, however, is not directly reflected in the earnings comparison of the two periods.  Sales of copper products were 38.4 million pounds lower in the 2003 quarter, accounting for much of the $25 million decrease in net sales.  The Company’s operating costs were $20.5 million lower in the 2003 period as a result of volume reductions and the decrease in sales of third-party copper concentrates. Additionally, the 2002 second quarter includes sales of 10,292 tons of copper, held over from the prior quarter because of shipping delays.

Tailings studies are under development to place the thicker tailings up-stream from Quebrada Honda in an area called “Pampa Purgatorio”, these studies are expected to be finished in September 2003; after which SPCC will choose the best alternative for the placement of tailings.”

“In June 2003 the Company hired an independent consulting firm to review and evaluate the proposals received for the smelter modernization.  The firm has already presented their report and SPCC has just awarded the contract for the project.

The selected proposal meets with SPCC’s requirements, which are the use of proven technology (the ISASMELT from Australia), that will not only provide good economic returns but also comply with the current environmental regulations.  It is estimated that the construction of the project will take no more than 36 months and it will be completed before January 2007, the deadline established in the PAMA. The approximate value of this project will be $306 million. ”

“On June 27, 2003, the Company awarded a contract to Bechtel International for the design and construction of an improved leaching system at the Toquepala open pit mine. The new system will replace the use of trucks to haul material, thus, compensating for a forecast decline in mineral grades by lowering costs.  The project has an estimated cost of $70 million and is expected to take 24 months to complete.”

Southern Peru Copper Corporation is one of Peru’s largest companies and one of the ten largest copper producers worldwide.  The ownership of SPCC’s shares, either directly or through subsidiaries, is as follows: Grupo Mexico (54.2%), Cerro Trading Company (14.2%), Phelps Dodge (14.0%) and other shareholders (17.6%).

Southern Peru Copper Corporation

and Subsidiaries

SUMMARY OF EARNINGS

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2003		2002		%		2003			2002		%
	(in millions, except for per share data)
Sales	$	168.4	$	193.4	(12.9	)	$	343.2		$	329.6	4.1
Earnings before taxes on income and minority interest of investment shares and non-recurring items	34.1		39.9		(14.5	)	67.0			46.8		43.2
Taxes on income	12.3		12.7		(3.1	)	25.1			14.8		69.6
Minority interest of investment shares	0.2		0.4		(50.0	)	0.4			0.5		(20.0	)
Earnings before cumulative effect of the change in accounting principle	21.6		26.8		(19.4	)	41.5			31.5		31.7
Cumulative effect of the change in accounting principle net of income tax	—		—		—		1.5			—		—
Net earnings	$	21.6	$	26.8	(19.4	)	$	40.0		$	31.5	27.0
Weighted average common shares outstanding (Basic)	80.0		80.0				80.0			80.0
Weighted average common shares outstanding (Diluted)	80.0		80.0				80.0			80.0
Per common share amounts:
Earnings before cumulative effect of the change in accounting principle	$	0.27	$	0.34			$	0.52		$	0.39
Cumulative effect of the change in accounting principle	—		—				$	(0.02	)	—
Net earnings - Basic and Diluted	$	0.27	$	0.34			$	0.52		$	0.39
Dividends paid	$	0.11	$	0.04			$	0.21		$	0.11

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Southern Peru Copper Corporation

and Subsidiaries

Average Metal Prices

	Three Months Ended June 30,						Six Months Ended June 30,
	2003		2002		%		2003		2002		%
Copper (per pound - LME)	$	0.74	$	0.73	1		$	0.75	$	0.72	4
Copper (per pound - COMEX)	$	0.75	$	0.74	1		$	0.75	$	0.73	3
Silver (per ounce - COMEX)	$	4.59	$	4.73	(3	)	$	4.63	$	4.60	1
Molybdenum (per pound - Metals Week Mean)	$	5.21	$	4.35	20		$	4.63	$	3.55	30
Metal Production and Sales
	Three Months Ended June 30,						Six Months Ended June 30,
	2003		2002		%		2003		2002		%
Copper (000s pounds)
Mined	204,000		173,700		17		396,300		362,300		9
Refined	182,300		184,800		(1	)	362,200		369,000		(2	)
Sales	184,300		222,700		(17	)	383,000		393,300		(3	)
Silver (000s pounds)
Mined	910		753		21		1,833		1,636		12
Refined	846		847		—		1,714		1,741		(2	)
Sales	869		991		(12	)	1,848		1,879		(2	)
Molybdenum (000s pounds)
Mined	4,683		4,341		8		9,083		9,689		(6	)
Sales	4,672		5,085		(8	)	9,120		9,658		(6	)

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Southern Peru Copper Corporation

and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

(Unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
	2003			2002			%		2003			2002			%
	(in thousands, except for per share data)
Net sales	$	168,387		$	193,372		(13	)	$	343,225		$	329,566		7
Operating costs and expenses:
Cost of sales	102,653			124,652			(18	)	217,337			214,914			1
Administrative and other expenses	7,042			7,884			(11	)	13,725			14,955			(8	)
Depreciation, amortization and depletion	18,497			16,288			14		36,369			32,509			12
Exploration expense	2,280			2,109			8		3,155			3,408			(7	)
Total operating costs and expenses	130,472			150,933			(14	)	270,586			265,786			2
Operating income	37,915			42,439			(11	)	72,639			63,780			14
Interest income	813			666			22		1,526			1,393			10
Other income and (expense)	(1,313		)	66			(2089	)	(976		)	(10,151		)	(90	)
Interest expense	(3,243		)	(3,245		)	(0	)	(6,212		)	(8,256		)	(25	)
Earnings before taxes on income, minority interest and cumulative effect of the change in accounting principle	34,172			39,926			(14	)	66,977			46,766			43
Taxes on income	12,349			12,701			(3	)	25,080			14,838			69
Minority interest of investment shares	177			413			(57	)	390			523			(25	)
Earnings before cumulative effect of the change in accounting principle	21,646			26,812			(19	)	41,507			31,405			32
Cumulative effect of the change in accounting principle, net of income tax.	—			—					1,541			—
Net earnings	$	21,646		$	26,812		(19	)	$	39,966		$	31,405		27
Per common share amounts:
Earnings before cumulative effect of the change in accounting principle	$	0.27		$	0.34		(19	)	$	0.52		$	0.32
Cumulative effect of the change in accounting principle	—			—					(0.02)			—
Net earnings - basic and diluted	$	0.27		$	0.34		(19	)	$	0.50		$	0.27
Dividends paid	$	0.11		$	0.04		185		$	0.21		$	0.91
Weighted average common shares outstanding (Basic)	80,010			80,004					80,009			80,004
Weighted average common shares outstanding (Diluted)	80,015			80,009					80,014			80,007

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Southern Peru Copper Corporation

and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

		June 30, 2003		December 31, 2002		Variance
		(in thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	230,585	$	147,537	56.3	%
Accounts receivable, net		59,441		60,345		(1.5	)
Inventories		88,905		91,880		(3.2	)
Other current assets		18,037		11,110		62.3
Total current assets		396,968		310,872		27.7
Net property		1,231,929		1,248,996		(1.4	)
Capitalized mine stripping, net		197,740		181,558		8.9
Other assets		9,591		10,820		(11.4	)
Total Assets		$	1,836,228	$	1,752,246	4.8	%
LIABILITIES
Current liabilities:
Current portion of long-term debt		$	55,000	$	—	—	%
Accounts payable		39,461		39,377		0.2
Accrued liabilities		64,003		61,417		4.2
Total current liabilities		158,464		100,794		57.2
Long-term debt		294,043		299,043		(1.7	)
Deferred income taxes		90,993		88,566		2.7
Other liabilities and reserves		15,150		14,792		2.4
Asset retirement obligation		5,080		—		100.0
Total non-current liabilities		405,266		402,401		0.7
MINORITY INTEREST		7,628		7,676		(0.6	)
STOCKHOLDERS’ EQUITY
Common stock (a)		261,737		261,726		0.0
Retained earnings		1,003,133		979,649		2.4
Total stockholders’ equity		1,264,870		1,241,375		1.9
Total Liabilities, Minority Interest and Stockholders’ Equity		$	1,836,228	$	1,752,246	4.8	%
(a)   Common Shares:	Authorized	34,099		34,099
	Outstanding	14,109		14,108
Class A Common Shares: Authorized and Outstanding		65,901		65,901

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Southern Peru Copper Corporation

and Subsidiaries

CONSENSED CONSOLIDATES STATEMENT OF CASH FLOWS

	(Unaudited) Three Months Ended June 30,						(Unaudited) Six Months Ended June 30,
	2003			2002			2003			2002
	(in thousands)						(in thousands)
OPERATING ACTIVITIES:
Net earnings	$	21,646		$	26,812		$	39,966		$	31,405
Cumulative of effect of the accounting change	—			—			1,541			—
Depreciation, amortization and depletion	18,497			16,288			36,369			32,509
Capitalized mine stripping	(10,338		)	(14,879		)	(19,242		)	(28,350		)
Minority interest of investment shares	177			413			390			523
Cash provided from (used for) operating assets and liabilities	13,201			2,613			(6,523		)	13,505
Other, net	3,996			(523		)	10,790			1,201
Net cash provided from operating activities	47,179			30,724			63,291			50,793
INVESTING ACTIVITIES:
Capital expenditures	(6,815		)	(22,840		)	(16,004		)	(50,353		)
Sale (purchase) of held-to-maturity investments	—			16,632			—			—
Other, net	1			75			3			78
Net cash used for investing activities	(6,814		)	(6,133		)	(16,001		)	(50,275		)
FINANCING ACTIVITIES:
Dividends paid	(9,121		)	(1,466		)	(16,482		)	(4,172		)
Debt incurred (repaid)	50,000			—			50,000			(96,992		)
Escrow (deposits) withdrawals on long-term loans	183			(55		)	183			6,936
Distribution to minority interest	(72		)	(47		)	(183		)	(142		)
Treasury stock and investment share purchases, net	(171		)	(201		)	(306		)	(327		)
Net cash provided from (used for) financing activities	40,819			(1,769		)	33,212			(94,697		)
Effect of exchange rate changes on cash	73			2,626			2,546			1,368
Net increase (decrease) in cash and cash equivalents	$	81,257		$	25,448		$	83,048		$	(92,811	)

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