Strategy

We believe that mining is the basis for the evolution of society, a key ingredient in sustaining the essence of the products and services required for development. We believe in what we do and, more than simply pursuing financial results, we strive to operate with excellence and to add value. To achieve this, we have established solid strategic management that assists us in ensuring continuous development and business continuity, while creating value for all stakeholders and producing consistent returns for shareholders.

Business Model

Our business model evaluates the capture, creation, and distribution of value from the six capitals defined by the International Integrated Reporting Council (IIRC) – financial, natural, human, manufacturing, social and relationship, and intellectual. Due to the nature of the mining sector, we understand that the main elements of value capture involve natural, financial, and human capital; and that we expand our activities in mining, smelter and marketing and distribution to our stakeholders.

Capture Value

Financial Capital: Cash generation produces the majority of the financial capital used in investments, in new project development and in the management of mines and smelters. Strategic projects are also financed with funds raised in the capital market.

Nature Capital: Our activities depend on the prospecting for resources and mineral reserves. To do this, we rationally consume natural resources and seek innovative alternatives to reduce effluents, waste, atmospheric emissions, and biodiversity impacts.

Human Capital: Our Values and Beliefs, our development and compensation policies are key factors in attracting and retaining highly qualified people. Moreover, we continuously invest in improving management practices and strengthening the safety culture among our employees.

Manufacturing Capital: Mining and smelter activities require the use of engineering and technology resources, which are managed to ensure our units’ operational stability and to maximize productivity.

Social and Relationship Capital: Engagement with stakeholders – in a process guided by dialogue with and development of the communities in which we operate – is essential for the maintenance of operations and the sustainability of our business, as is improvment of the conditions/prosperity of the communities.

Intellectual Capital: To stimulate the development of technology and innovation, we work in partnership with universities, research centers and public institutions.

Creation Value

Strategic Driver:
Growth
 

Strategic Driver:
Operational
Efficiency

Strategic Driver:
Market
Development

Mineral Exploration

Discovering and developing economically viable mineral resources, as well as extending our mines’ useful lives, represent competitive advantages, adding value through the exploitation of reserves or the sale of these projects.

Mininig

We conduct mining activities to market concentrates – mainly zinc and copper, with a major part earmarked for our smelters. Our process is distinguished by responsible socioenvironmental impact management and in the relationships we maintain with the communities near our mines.

Smelter

We operate three smelters, which are located near our principal mines, and each one of them has a specific value proposition. In addition to zinc metal, zinc oxide, and alloys, the units are configured to produce coproducts, such as silver concentrate, sulfuric acid, and copper sulfate.

Commercialization

We sell concentrates, metallic zinc and co-products, and invest in the development of products and applications with greater potential for growth in the coming years, while identifying new trends and market needs.

Created Value

US$ 2.4 billion
in net revenue

US$ 106 million
in taxes paid

US$ 1.5 billion
paid to suppliers

US$ 14.6 million
invested in communities

US$ 61.5 million
directed to the environment

US$ 94.3 million
invested in mineral exploration and project development

765
new jobs GRI 401-1

2,639
contracted suppliers

Shared Value

Employees: We generate direct and indirect jobs; develop, train, and recognize the achievements of our employees while tending to their safety, their intellectual and professional growth.

Investors: The efficient management of assets and resources leads to profit generation, the payment of dividends and increases in the company’s value.

Customers: We manufacture quality products and maintain partnerships with customers who are in search of new solutions and applications, thus sustaining, in perpetuity, the zinc and copper value chain.

Public Sphere Management: We pay taxes to governments and promote the training of managers in the public service to improve the quality of services offered to communities in our areas of activity.

Communities: We have a social action plan that features structured activities and ongoing relationships in the localities in which we operate. Through these efforts, we are establishing a lasting legacy by contributing to the development of these communities.

Suppliers: We hire a range of suppliers and seek to train those who are present in the localities in which we operate, thus promoting indirect job creation.

Financial Institutions: We have access to credit financing, which enables us to invest in projects that bring development and value creation to the company and to the localities where we operate.