"Investor letter to Grupo Mexico and Southern Copper", March 5 2021

We are writing to you as investors regarding the environmental, social and governance practices of Grupo México S.A.B, de C.V. (“Grupo México”) and its majority-owned subsidiary Southern Copper Corporation (“Southern Copper”). As described below, we are concerned regarding the sustainability of Grupo México and Southern Copper’s business practices. We respectfully request an opportunity to engage in a dialogue with the appropriate company representatives to address the concerns outlined below.

Grupo Mexico’s U.S. operations have also raised labor rights concerns. In 2016, the United Steelworkers Union and Los Mineros filed a complaint with the U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises.16 The complaint alleged that Grupo México’s U.S. subsidiary ASARCO had violated the OECD Guidelines by engaging in conduct designed to avoid reaching a collective bargaining agreement. After determining that the allegations merited further consideration, the U.S. National Contact Point offered mediation to the parties but Grupo México refused to participate.

Most recently on January 7, 2021, Region 28 of the U.S. National Labor Relations Board issued a third consolidated complaint against Grupo México’s subsidiary ASARCO. The complaint alleges that ASARCO engaged in various unfair labor practices that resulted in a 2019 strike against the company.20 In July 2020, the strike ended but ASARCO allegedly refused to reinstate the striking employees.21 A hearing has been scheduled for June 2021 before an administrative law judge to review evidence against ASARCO for allegedly violating U.S. labor law...