Strategic mandate

Every three years, we implement an established strategy review process called Strategic Dialogue. This is a fundamental step in the discussion cycle about where the company is headed and is an important part of the process to ensure we will move in the direction expected by the shareholders and other stakeholders. Our last review was initiated in December 2017, based on individual and structured interviews with all of the company’s executive directors and Board of Directors members to identify both positive aspects as well as improvements and adjustments that should be made.

At the same time, we analyzed the industry scenario, macro trends, new technologies, and the political, economic and social environments of the countries in which we operate. Likewise, we verified our competencies and capacity to execute the strategy, as well as how these aspects have evolved since the previous evaluation.

Based on this analysis, which was coordinated by the Strategic Planning area and supported by the various departments and key people in the organization, we prepared a review of our Strategic Mandate, which was approved in June 2018 by the Board of Directors. It is a document that formalizes our aspiration to be an intelligent and reliable company that generates value for its stakeholders.

Axes and enablers

We maintained our intention to ensure growth with competitiveness, based on two strategic axes: Operational Growth and Excellence.

A third axis, Market Development, which had been established previously to accelerate our commercial competence, has now become one of the enablers underpinning the growth strategy. This came about because we made significant progress in the face of the previously proposed objectives for this axis, such as regional leadership in the marketing of metals and global positioning, in addition to the development of a global footprint and the pursuit of change that reflected the company’s new momentum.

The other enablers are People and Organization, Sustainability, Project Management, Risk Management, Technology and Automation, Supplies and Logistics and Capital Structure.

In August 2018, we ran a Strategy Workshop to present a review of the new Mandate and the challenges it proposed to the organization’s entire leadership. Among the challenges addressed were those associated with the trends of the so-called “New Age of Mining”: a demand from society and a focus by companies on mining and smelting operations that are safer, more efficient, more sustainable and more intelligent.

The review of the strategy pointed precisely to the need to be prepared to respond quickly and efficiently to possible changes in the scenario, whether in relation to political, economic, environmental, safety or social issues. Some of the points raised during the dialogue are: new mining regulations; organized civil society movements; social licenses for operations, which demand direct and transparent negotiations with communities; the political environment; royalties and taxes; and workforce availability and mining activity profiles.

Strategic guidelines

Enablers

People and organization

Cultivate talents and promote inspiring leadership
Ensure key critical resources within the organization and their ongoing evaluation and improvement
Contribute to raising productivity and business competitiveness
Promote effective governance and organization
Promote a positive and constructive relationship with important stakeholders

Project management

Ensure development and execution by supporting areas to ensure project returns and minimize the diversion risk
Monitor and enhance the long-term investment plan

Commercial

Continually positioning Nexa as a strategic partner in domestic markets and enhancing its global business strategy (developing new markets and products aligned with global trends)
Manage the concentrate sales portfolio, exploring the benefits of smelter-mine integration, continuously improving sales intelligence

Risk management

Identify and manage the main risks (both operational and strategic), reducing and mitigating impacts mainly through preventive systems
Monitor volatility and discuss actions appropriately

Sustainability

Continuously improve the safety and health culture
Reduce environmental impacts (emissions, waste, water and energy consumption, etc.) of operations
Create shared value with society, contributing to the co-creation of a legacy that is relevant to the localities in which we operate

Technology, automation and innovation

Improve operational efficiency and stability through technology and automation solutions
Seek technologies for greater eco-efficiency
Allow the use of low-grade and more flexible ores/alternative use of raw materials (promote circular economy)
Develop an innovation platform focused on technology and automation and for innovative processes. Stimulate an increasingly more intelligent way of thinking and operating.

Logistics and supplies

Generate competitive advantages for operations, processes and projects
Be a facilitator for a better and more sustainable client-supplier solution
Be a specialist in the best evaluation between outsourcing and insourcing
Innovate in processes, tools and information (from and to Nexa)