Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
PERU – SENACE, the Peruvian National Environmental Certification Service, has rejected Toronto-based Sierra Metals’ environmental impact assessment for the expansion of the tailings management facility at the Yauricocha polymetallic mine in the Yauyos province.
Sierra Metals has 15 business days to provide a re-evaluation to the authorities to initiate a review process. This process will delay the start of the expansion project because the company cannot proceed with the application for a construction permit for the dam extension without approval of the EIA.
The delay will also extend the final submission of the ITS document that has to be approved before the company can increase mine output by 20% to 3,600 t/d.
Igor Gonzales, president and CEO of Sierra Metals commented, “While we are disappointed, we do not believe this decision was made with all the facts. Key members of the management team are going to meet with authorities to provide and demonstrate full compliance with the requirements. The expansion plans in Mexico to 3,600 t/d at Bolivar and to 1,200 t/d at Cusi are not affected by this decision and they are still on track, and on budget to be completed in Q1 2019.”
The most recent corporate presentation is available at www.SierraMetals.com.
