Message
from the CEO
GRI 102-10 E 102-14

We are determined to achieve our aspirational goal: to be globally recognized as an intelligent and reliable company, growing in zinc and copper mining, taking the world of mining to the world of people and consistently delivering attractive results.

In 2018, our operations made significant progress, featuring the implementation of new projects and internal processes that strengthen our capacity to create value over the long-term. Special mention should be given to the improvements we made in safety, a key topic that is one of our organization’s values. Our indicators were much better than in previous years, the result of a robust plan of action that involved everyone in management.

Over the course of the year, our Board of Directors defined Nexa’s strategic mandate for the next three years. As an intelligent, reliable company that delivers what it promises, we aspire to be more innovative and connected to the world and the trends, identifying simple solutions to our challenges. This was our main guideline in 2018.

We also moved forward with the integration process between the units in Brazil and Peru. Today, we are a unique company, with stronger and better adapted technical and administrative teams. The full integration of our operations was fundamental to the optimization of our processes, systems, structures and costs in a manner that was both competitive and attractive for the market.

We place great emphasis on innovation, with transformative technologies and processes. Toward this end, we successfully concluded the second edition of the open innovation Mining Lab that included 186 registered projects and nine winning startups, as well as the participation not only of Brazilian companies but also Canadian, Peruvian and American firms.

All the innovative and state-of-the-art technology is being applied in our operations — especially our new mineral exploitation project in Aripuanã in the state of Mato Grosso. The unit received its installation license in December, and is being built right from the start using all of the standards of excellence we have been striving to implement. Aripuanã marks the beginning of a new phase in the company, wherein we are beginning to deliver what we promised in our IPO. It also represents a great challenge for the upcoming two years.

Our Capex totaled US$ 300 million in the year, mainly earmarked for Growth and Operational Excellence purposes. In addition to the resources directed to Aripuanã, we also made progress on the Magistral, Hylarion and Pukaqaqa greenfield projects.

From the commercial point of view, it was a period of good results. This was due to the offsetting of the decline in demand in South America with growth in other places, such as the U.S. and Asian markets. Another positive factor was the opening of an office in Shanghai, China, which lets us capture opportunities and better understand the characteristics of this important market.

We believe that talent development is also a critical factor for the success of our business. Therefore, we invest in programs and initiatives that increasingly allow swapping experiences and cultural integration between our teams. We have global programs in place for the development of young talents, the formation of managers and exchange opportunities between the countries in which we operate. The result of our employee climate survey confirmed that we are on the right track: 93% of staff participated and the favorable rating we earned places us among the first quartile in the industry in terms of organizational climate.

One way to value the initiative of our employees is through the Recognition Program, which rewards actions in the social, operational and environmental spheres. This year, we saw higher participation and levels of commitment than in 2017. One example of team engagement is the growth of the volunteer program, for which we have ambitious goals designed to boost our contribution in the coming years.

We are determined to achieve our aspirational goal: to be globally recognized as an intelligent and reliable company, growing in zinc and copper mining, taking the world of mining to the world of people and consistently delivering attractive results.

Tito Martins
Chief Executive Officer