| VIEW FROM THE TOP
MECHANIZATION THE KEY TO BOOSTING PRODUCTION IGOR GONZĂ LEZ President and CEO of Sierra Metals
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Q: What is the company’s strategy for developing its mines?
sustain this growth. We increased the section of the main
A: One of the first steps we undertook when I joined the
ramp from 3.5x3.5m to 5x5m. This allowed us to bring in larger
company was to create a management strategy. This strategy
equipment, surface equipment and to mechanize the entire
is quite simple. We have significant brownfield exploration
mine. As this increased productivity, we are able to feed the
potential at our three mines, so our first phase is to focus
plant at 1,200t/d and eventually at 2,400t/d. We also installed
precisely on brownfield exploration. Once we identify new
a ball mill, cyclones and crushers.
resources, we start working to increase our reserve resources via 43-101s. Last year, we increased resources at the Cusi
Q: How are you facing the challenge of automating your
mine by 130 percent and by 83 percent at our Bolivar mine,
mines and reconfiguring your human capital to meet this
both located in Chihuahua. We also succeeded in increasing
new reality?
reserves at the Yauricocha mine in Peru by 134 percent. After
A: Rather than fully automating our mines, we want to
translating our strategies into material value, we started
fully mechanize them. In all the areas where we used to
working on the expansion of our operations. Our first step
employ labor, we are striving to implement Jumbos and
was to take Cusi from 300-400t/d to 650t/d by mid-2018
other equipment that can do the job with just an operator
and then to 1,200t/d by January 2019. We are in the ramp-up
or remote controls. While it is true that we are using less
period and undertaking the calculations for Cusi to become
labor, we are also putting our equipment under the stress of
self-sustaining, which implies the production of 2,400t/d. This
working more operational hours. This requires a more detail-
is our guidance for 2019 and we expect to reach that target
oriented maintenance program. So, we use fewer operational
by 4Q19. We need to prepare the mine at the plant level to
people but more specialized and technical people. We have several partners from different countries helping our drive to mechanize our operations. All their new equipment comes
Sierra Metals is a mid-tier precious and base metals producer in
with technical support. We have spent over US$10 million
Latin America. It owns and operates three mines in commercial
just in mechanizing the Bolivar mine and about US$4 million
production, including the Bolivar and Cusi mines in Mexico. The
at Cusi. We also changed the mining method at Bolivar and
company is focused on expanding global reserves and resources
Cusi to longwall mining, although we also use sublevel caving.
