Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
Nexa Resources (NYSE: NEXA, TSX: NEXA) announced on Thursday that operations at its Cerro Lindo, Atacocha and El Porvenir mines remain suspended, as the Peruvian government has extended the nationwide quarantine period until April 26.
The company, part of Brazil’s Votorantim Group, said mining activities continue to be limited to critical operations with a minimal workforce to ensure maintenance, safety and security.
Cerro Lindo, Atacocha and El Porvenir accounted for 198,000 tonnes (54.8%) of the 361,000 tonnes of zinc, 45,000 tonnes (87%) of the 51,700 tonnes of lead and 38,500 tonnes (100%) of the copper Nexa produced in 2019.
The Cajamarquilla smelter is expected to continue running at reduced rates, and mining and smelting operations in Brazil continue to operate normally.
“In relation to the Aripuanã project, workforce was planned to increase during April,” Nexa said. “However, due to the additional safety procedures adopted to prevent global outbreak development in the region, we have restricted the number of people on the site. Consequently, construction activities in April will be behind our estimates.”
The company has also proactively managed its liquidity position to navigate this adverse scenario by adding $650 million to its cash balance through the assumption of $350 million of additional debt in March and fully drawing down its revolving credit facility of $300 million in April.
