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ZINC SURPLUS TO FEED US MARKET FERNANDO ALANÍS CEO of Industrias Peñoles
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Q: How optimistic is Industrias Peñoles regarding industry
technical support and help our clients make sure that zinc is
growth, considering the volatility of the sector?
up to par with their operational requirements.
A: There are many people within the mining industry who speculate but few who actually understand what
Q: How close is the Rey de Plata project to starting
is happening. Precious metals are highly volatile and
production?
companies cannot change their plans every time there
A: This project has already finished its exploration phase
is an unexpected change. Successful companies need to
and will go into production in 2019. It is located in Guerrero,
have a long-term vision and not let themselves get carried
an area complicated by security issues but we are making
away by the ups and downs of the price cycle. We need to
sure to work hand-in-hand with surrounding communities
focus on the few things we can control such as reducing
to avoid problems and by proving the economic and labor
costs, increasing productivity and being highly efficient
opportunities the mine can bring to the region.
and everything else will fall into place. Companies that follow these rules can obviously still be impacted by a
We prioritize CSR because we understand that all mines will
sudden drop in prices but they will be strong enough to
eventually come to a close as minerals are a finite resource.
survive the volatility.
Our goal is to avoid creating ghost towns after a project is closed and we put into action several strategies to assure
Q: Why is the company taking a bet on zinc by investing in
this. For example, in Durango we helped the community
the expansion of its refining plant in Torreon?
start a trout farm and the project has successfully become
A: We believe that Mexico is in an optimal position to refine
an economic pillar for the area. This community now exports
zinc. The North American market is experiencing a zinc deficit
to South and Central America and we know that when we
but Mexico has a surplus of the metal. The main markets
close the mine in the area, the people will not suffer negative
for zinc are automotive, construction and home appliance
economic consequences. We are developing a similar model
manufacturers because the metal can prevent steel corrosion.
in Guerrero by teaching the community new abilities parallel
The US is one of the biggest consumers in the world for zinc
to the development of the mine. Peñoles is also offering
thanks to its growing infrastructure industry.
young people technical careers and incorporating them into the mine. We just started the advanced construction phase
In response, we are investing US$327 million in our refining
of Rey de Plata and we are building the plant and continuing
plant in Torreon to increase production to 360,000 tons from
civil works. We installed 35km of electricity lines without
240,000 tons. We export the material to various countries
any problems. The mine also has the main equipment it
and regions around the world, such as the US, Europe, Central
will require for production. This project is important to us
and South America. The expansion is almost completed and
as it will produce gold, silver, copper, lead and zinc with a
we are collaborating with Outotec, a company that serves a
milling capacity of 4500t/d. It is not the company’s first
wide variety of sectors, to incorporate new technology into
time working in Guerrero and we are happy to be back in
the plant. The project is expected to be completed in May
the state.
2018. A large portion of the additional product being refined will be sent to the US.
Q: What does the company foresee for its other projects in development?
We are completely self-sufficient and can do everything from
A: Los Humos, a project in Sonora, is in the final stage of
production to processing and refining. The company has a
exploration and we hope that by the end of 2018 or the
commercial office in Connecticut and various warehouses
beginning of 2019 we will have completed its feasibility
around the US. Sixty percent of the zinc we refine is adapted
studies. By this time, we will be able to decide whether it is
to the specific needs of our clients. We can also provide
a viable project. We have invested a lot into exploring this
