{"id":1144886,"date":"2019-10-21T05:35:24","date_gmt":"2019-10-21T10:35:24","guid":{"rendered":"https:\/\/www.mining.com\/?p=1004753"},"modified":"2019-10-21T05:35:24","modified_gmt":"2019-10-21T10:35:24","slug":"nexa-resources-to-open-worlds-second-largest-zinc-mine-in-2021","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1144886","title":{"rendered":"Nexa Resources to open world\u2019s second largest zinc mine in 2021"},"content":{"rendered":"<p>Brazil\u2019s Nexa\u00a0Resources (TSX, NYSE: NEXA) expects to begin commercial production at its <a href=\"https:\/\/ri.nexaresources.com\/show.aspx?idMateria=AoHlxmdM6CyPtg\/1l58IOw==\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">recently acquired Aripuan\u00e3 zinc project<\/a>, in the country\u2019s Mato Grosso state, by 2021, as the company seeks to maximize benefits of current market conditions for the base metal.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The company, led by former Vale<br \/>\nCanada\u2019s chief Tito Martins, consolidated ownership of the low-cost underground<br \/>\nzinc polymetallic mine project in August this year, through the acquisition of<br \/>\nCanadian junior Karmin Explorations.<\/p>\n<p>Moving forward construction of Aripuan\u00e3 is part of Nexa\u2019s ongoing efforts to grow and expand its presence on the global zinc and copper markets.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Nexa Resources already operates five low-cost mines in Brazil and Peru and\u00a0has become the world\u2019s fourth largest zinc producer.<\/p>\n<\/blockquote>\n<\/figure>\n<p>\u201cWe are optimistic about zinc. Current prices have reflected the turmoil caused by the trade war, but progressive negotiation between US and China may rapidly boost quotations,\u201d Martins told MINING.COM.<\/p>\n<p> \u201cThe fundamentals of the market are solid, with the lowest inventory levels in 10 years and a shortage of large new projects. In China and India, zinc consumption is still very low, and there are great opportunities for consumption in galvanizing,\u201d Martins noted.<\/p>\n<p>Once in operations, the<br \/>\n$354-million project will become the world\u2019s second biggest zinc mine.<\/p>\n<p>\u201cOur expectation is that the refined zinc market will remain in deficit in 2019, which, added to low inventories, maintains the strength of zinc fundamentals,\u201d Martins said.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/nexa-resources-cerro-lindo-1024x576.jpg\" alt=\"Nexa Resources to open world\u2019s second largest zinc mine in 2021\" class=\"wp-image-1004756\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/nexa-resources-cerro-lindo-1024x576.jpg 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/nexa-resources-cerro-lindo-300x169.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/nexa-resources-cerro-lindo-768x432.jpg 768w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/nexa-resources-cerro-lindo.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Cerro Lindo, in Peru, is one of Nexa\u2019s most important mines. (<em>Image courtesy of <a href=\"https:\/\/www.flickr.com\/photos\/153078665@N08\/38530971852\"  rel=\"noopener noreferrer\">Nexa Resources | Flickr.<\/a><\/em>)<\/figcaption><\/figure>\n<p>Nexa\u2019s ambitions has led the<br \/>\ncompany to invest in projects that can extend the life of current operating<br \/>\nmines and increase production through brownfield expansions.<\/p>\n<p>The results, so far, are positive.<br \/>\nNot only it operates five low-cost mines in Brazil and Peru, but the Sao<br \/>\nPaulo-based firm&nbsp;has also become the world\u2019s fourth largest zinc producer.<\/p>\n<p>Additionally, Nexa is Brazil\u2019s top<br \/>\nminer of the metal, and the only integrated zinc producer and smelter in Latin<br \/>\nAmerica. <\/p>\n<h2><strong>Innovation engine<\/strong><\/h2>\n<p>From an innovation standpoint, Nexa<br \/>\nis focused on transformational innovations, which search for technologies that<br \/>\neliminate dams or minimize the risks inherent in tailings storage; and<br \/>\nincremental innovations, which are focused on optimization and cost reduction. <\/p>\n<p>To achieve such ambitious goal,\u00a0the company has set partnerships with universities, research centres, start-ups and companies around the world that are focused on the use of advanced technology and automation.\u00a0<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Nexa has set partnerships with universities, research centres, start-ups and companies focused on the use of advanced technology and automation in mining.\u00a0<\/p>\n<\/blockquote>\n<\/figure>\n<p>Nexa\u00a0launched a <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"http:\/\/www.mining.com\/web\/deadline-approaching-2-4-million-start-competition-usa\/\" >Mining Lab Challenge<\/a> four years ago, aiming at supporting initiatives of entrepreneurs developing technological innovation projects for the mining and metallurgy industry. To date, the company has signed 15 contracts with start-ups participating in the program.<\/p>\n<p>According to information available<br \/>\non the miner\u2019s web site, Nexa&nbsp;is continuously working to reduce its impact<br \/>\nin local communities and to create socio-environmental value by implementing<br \/>\nsustainable practices, such as the use of electric vehicles in its mines and<br \/>\nthe ongoing implementation of recirculation\/recycling initiatives. <\/p>\n<p>In Aripuan\u00e3, for example, there are<br \/>\nno tailing dams and 100% of water is recirculated. At its Cerro Lindo<br \/>\npolymetallic underground mine, located in the Peruvian Andes Mountains, 98% of<br \/>\nwater is recirculated.&nbsp;<\/p>\n<p>Nexa also has a 10-year automation<br \/>\nand digitalization plan in place, affecting all of its assets, including<br \/>\nlong-life mines such as Atacocha and El Porvenir in Peru, in operations since<br \/>\nmid 1900s, and the Vazante mine in Brazil, which began production in 1969.<\/p>\n<p>Prices for zinc, one the company\u2019s main focus, has languished since its <a href=\"https:\/\/www.mining.com\/zinc-sentiment-staring-into-the-bear-pit\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">decade-high rally to $1.63 per pound<\/a> ($3,595 per tonne) in early 2018, struggling since to break above $1.36 per pound, or $3,000 per tonne. As per this week, the corrosion-inhibiting metal was trading on the London Metal Exchange (LME) at $2,432 per tonne.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/nexa-cerro-lindo-peru.jpg\" alt=\"Nexa Resources to open world\u2019s second largest zinc mine in 2021\" class=\"wp-image-1004755\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/nexa-cerro-lindo-peru.jpg 900w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/nexa-cerro-lindo-peru-300x169.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/nexa-cerro-lindo-peru-768x432.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><figcaption>Cerro Lindo zinc-copper-lead mine in Peru, which produced 130,000 tonnes of zinc-in-concentrate in 2018. (<em>Image: <a href=\"https:\/\/www.flickr.com\/photos\/153078665@N08\/37845776314\/\"  rel=\"noopener noreferrer\"> Nexa Resources | Flickr.<\/a><\/em>)<\/figcaption><\/figure>\n<p>According to Scotiabank research, global zinc demand averaged 2.3% growth annually from 2012 to 2017, but saw negative 0.3% growth in 2018. The bank also forecasts negative demand growth of 0.5% this year, followed\u00a0 by modestly increasing consumption of 1% in 2020, and 1.5% in 2021. <\/p>\n<p>Tito Martins and his team, however, believe the medium and long-term outlook for zinc and copper are positive, particularly as the later is essential in developing an electrical network. <\/p>\n<p>Copper prices, he says, must be supported\u00a0by a good primary consumption during the second half of the year, especially by Chinese investments in infrastructure. \u201cIn addition, there is limited availability of copper scrap in the Chinese market (\u2026) In this context, our strategy remains focused on the growth of both metals in the Americas.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Brazil-based company already operates five low-cost mines in South America and has become the world&rsquo;s fourth largest zinc producer.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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