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Project received $625m investment, can produce 120,000 tonnes per year

07/08/2022


Nexa, a mining company of zinc and other metals controlled by Votorantim, started this week the operations of a new mine, Aripuanã, in the namesake city, in Mato Grosso. This is one of the largest zinc projects in installation in the world and received investments of $625 million.

In a statement, the company said full production is planned for the second quarter of 2023. Nominal capacity is 120,000 tonnes of zinc equivalent per year, from the processing of 2.2 million tonnes of raw ore.

The new mine is expected to reach commercial production by the fourth quarter of 2022. It is expected to produce between 14,000 and 23,000 tonnes of zinc, 1,600 to 2,300 tonnes of copper, 5,000 to 7,700 tonnes of lead, and 300 to 500 ounces of silver this year. The volumes are subject to the inherent risks of a mine start-up.

The Aripuanã project consists of three main mineralized zones in the region, with an estimated average annual production of 70,000 tonnes of zinc, 24,000 tonnes of lead, 4,000 tonnes of copper, 1,800 ounces of silver and 14,500 ounces of gold. The lifespan of the mine is expected to be 11 years, considering currently estimated mineral reserves.

“Aripuanã is Nexa’s largest investment project in Brazil, which contributes to the social and economic development of the region,” Nexa’s CEO Ignacio Rosado said in the note. “It is also one of the few zinc projects in the world and we are confident that it will be a low-cost mine with a long operating life.”

According to the executive, this is the third major mine in Nexa’s asset portfolio, which strengthens its unique position to meet the growing demand for zinc worldwide. Mr. Rosado took over as CEO of Nexa on January 1st, 2022.

The venture – with underground extraction – is one of the most sustainable mineral projects in the country, says Nexa. According to the company, it has almost 100% water recirculation and the use of dry stacking and cemented paste filling for tailings.

Nexa, which was previously Votorantim Mineração and currently has more than 60% of its capital in the hands of group, has been operating for more than 60 years in the mining and metallurgy segments. The company has operations in Brazil and Peru, headquarters in São Paulo and an office in Luxembourg. Since 2017, its shares have been traded on the New York Stock Exchange. Nexa reported net revenues of $2.6 billion in 2021.

*By Ivo Ribeiro — São Paulo

Source: Valor International

https://valorinternational.globo.com/