Nexa Resources, a major player in the Latin American mining industry, has announced that it is in the process of negotiating the sale of its Pukaqaqa copper project located in the central highlands of Peru. The company, recognized for operating Cerro Lindo, the largest underground zinc mine in Peru, disclosed these ongoing discussions in a recent communication to the local securities regulator, SMV.
The Pukaqaqa project, valued at approximately $655 million, is a significant copper-gold deposit. Plans for the site include mining through a conventional open pit method, expected to yield both copper and molybdenum concentrates. Situated at an altitude exceeding 4,000 meters, Pukaqaqa is one of several Nexa Resources projects in Peru yet to have a construction start date confirmed.
According to Nexa Resources’ assessments, Pukaqaqa boasts about 83 million tonnes of measured and indicated resources and an additional 74 million tonnes of inferred resources, totaling 157 million tonnes. Initially, the company had projected that operations would commence by 2023. However, local opposition has led to delays in making a final decision on construction, underscoring the complex dynamics between mining operations and community relations.
Beyond Pukaqaqa, Nexa Resources has a robust portfolio in the region, including ten exploration projects across Peru valued at nearly $60 million. The company’s extensive operations include five underground mines—three in the Central Andes of Peru and two in the Brazilian state of Minas Gerais. Additionally, Nexa operates three smelters, two located in Brazil and one in Cajamarquilla, east of Lima, which stands as the largest smelter in the Americas and ranks among the top five globally.
Peru’s position as the world’s second-largest copper producer, after Chile, and a significant producer of zinc, highlights the critical role the country plays in the global mining industry. Nexa Resources’ potential sale of the Pukaqaqa project is not just a significant business move for the company but also a notable event in the Peruvian mining landscape.
This sale aligns with broader trends in the mining industry, where companies often reassess their asset portfolios to optimize their operations and financial performance. For Nexa, divesting from Pukaqaqa could represent a strategic shift towards refining its focus on other potentially more lucrative or less controversial projects.
The outcome of these negotiations will likely have significant implications not only for Nexa’s operations but also for the economic and environmental situation of the region. The discussions also reflect the ongoing challenges mining companies face in balancing project development with environmental stewardship and community relations.
