Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Latin American miner Nexa Resources has pledged to invest up to $200 million towards improving the Pasco mining complex in Peru, which consists of the Atacocha and El Porvenir polymetallic mines located 4,000 meters above sea level.
Speaking at this week’s PERUMIN mining convention, Nexa CEO José Carlos del Valle revealed that his company has several brownfield investments planned, among them is the integration of Atacocha and El Porvenir to extend their mine life.
The initiative consists of building a tunnel that will connect Atacocha and Porvenir to extract Atacocha mineral through the Picasso shaft, in Porvenir. The minerals from both mines will then be processed at the El Porvenir plant, del Valle said.
“The project is in the study phase, but we hope to have it ready to take it for formal approval by our board of directors by the end of the year,” del Valle told reporters.
He also indicated that the exploration and drilling campaigns at Pasco have allowed the company to understand the geology of the integration zone between the two mines.
“The work shows us a greater production volume at lower costs in addition to the extension of the useful life of the pasture mining complex. We are very optimistic about the project,” he added.
In addition to Atacocha and El Porvenir, which together account for 63,000 tons of zinc output annually, Nexa’s Peruvian subsidiary also owns the Cerro Lindo mining operation in Ica, the largest underground polymetallic mine in the country.
On top of that, it boasts a portfolio of greenfield copper and polymetallic projects throughout the Latin American nation, some of which are in advanced stage and have feasibility studies.
The company also has the Cajamarquilla refinery located east of Lima that produced and marketed approximately 600,000 tons of zinc metal. This places it at fifth best in the world and the most in Latin America.
