LUXEMBOURG - Nexa Resources S.A. (NYSE:NEXA), a significant player in the zinc production industry, announced the suspension of its mining operations at the Morro Agudo Complex in Minas Gerais, Brazil, starting May 1, 2024. Until the suspension takes effect, the company will reduce mining activities but maintain limestone production at full capacity.
The Morro Agudo mine, which in 2023 produced 23 kilotons of zinc and 8.3 kilotons of lead, currently holds no estimated mineral reserves. This suspension is a strategic move by Nexa as part of its portfolio optimization to enhance free cash flow and adhere to a disciplined capital allocation framework, focusing on long-term value for shareholders.
Despite the suspension, Nexa's 2024 consolidated guidance remains unchanged. The Morro Agudo Complex contributes approximately 1,650 tons of zinc and 390 tons of lead monthly, representing 5% and 6% of Nexa's total zinc and lead production, respectively.
Nexa, with over 65 years of experience in the mining and smelting sector, operates five long-life mines and three smelters across Latin America. The company is in the process of ramping up its sixth mine, Aripuanã, in Mato Grosso, Brazil. Nexa was among the top five global producers of mined zinc and metallic zinc in 2023, according to industry analyst Wood Mackenzie.
The decision to suspend operations aligns with the company's continuous assessment of risk-return alternatives for its assets, including the Morro Agudo Complex.
This news article is based on a press release statement.
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