Nexa unveils US$300mn 2024 capex plan

Nexa Resources, a Brazilian polymetallic miner that also has operations in Peru, unveiled a US$311mn capex plan for this year. 

Of the amount, US$261mn will be used for sustaining investments, with mining accounting for US$200mn, including US$39mn at the Aripuanã project, and US$61mn going to smelting.

"In the mining segment, the majority of sustaining capital expenditures are US$103mn for underground mine development, US$20mn for El Porvenir’s dam elevation project, US$19mn for overall maintenance, US$18mn for tailings storage facility (TSF), US$6mn for maintenance of heavy mobile equipment (HME), and US$3mn for improvement of Cerro Pasco’s dam pumping system," the company said in a statement.

El Porvenir and Cerro Pasco are both in Peru.

"In the smelting segment, the majority of sustaining capital expenditures are US$36mn for overall maintenance, US$14mn for roaster maintenance, US$7mn for assets improvement and US$4mn for TSF," it added. 

Capex for health, safety and environmental initiatives are expected to be US$24mn.

EXPLORATION 

The company also presented a 2024 plan to invest US$58mn in exploration.

"As part of our long-term strategy, we continued to maintain our efforts to replace and increase mineral reserves and resources. We expect in the future to continue advancing our exploration activities, primarily focusing on identifying new ore bodies and upgrading resources classification through infill drilling campaigns," Nexa said.

Of the total, mineral exploration expense guidance for the year is US$42mn and relates mainly to greenfield and brownfield projects.

In addition, the company will invest US$14mn in initiatives to extend the life of the disposal facility at the Três Marias smelter in Brazil. 

Nexa owns and operates five mines - three located in Peru and two in Brazil’s Minas Gerais state - and it is ramping up Aripuanã in the state of Mato Grosso.

It also owns and operates three smelters, two in Minas Gerais and one in Peru, Cajamarquilla, which is the largest smelter in the Americas.