We are a large-scale, integrated, low-cost zinc producer, with over 60 years of experience in the development and operation of mining and smelting assets in Latin America. Our main shareholder is Votorantim S.A. (64.3%), which constituted Nexa Resources S.A. three years ago, the result of integration between Brazilian and Peruvian operations. GRI 102-1
Since October 2017, our shares have been traded on the New York, United States, and Toronto, Canada stock exchanges. Our headquarters is located in Luxembourg and the administrative headquarters are in the cities of São Paulo (Brazil) and Lima (Peru). Our commercial offices are located in Brazil, Peru, the United States and Luxembourg (which started to coordinate the commercial relations carried out by the offices in Austria and China, which ended their activities in 2019). GRI 102-3, 102-5, 102-10
Message from the Board of Directors
In 2019, we continued to make progress towards our goal of becoming a benchmark for sustainability in the mining sector and we are following this path with determination. In recent years, we have strengthened our management procedures regarding the three sustainability pillars – economic, environmental and social – with the aim of generating more value for shareholders and for all society.
The Board of Directors now comprises ten members, with the addition of a new member during 2018. In addition, it has also become more pluralistic, with representation of women and men from six nationalities, 40% of whom are independent members.
We have strengthened our governance practices through the creation of the Sustainability Committee, which is now responsible for establishing guidelines, supporting and monitoring our practices, so that they are safe and sustainable, based on high standards of health, safety, respect for the environment and corporate social responsibility. The creation of this committee is in addition to the other three bodies already in existence, also permanent in nature: Audit, Finance, Compensation, Nominating and Governance.
of investments in assets (Capex)
Message from the CEO
The year of 2019 was challenging for the entire international commodities industry due to the various political and economic events that impacted base metal prices. It was no different for Nexa. To face an increasingly unpredictable market and, at the same time, build the mining of the future, we launched the Jeito Nexa (The Nexa Way) Program, aimed at the evolution of our corporate culture and designed to improve the efficiency of our operations, generating great potential of return for all our stakeholders. This is another step on our journey to build, every day, a more sustainable, more plural and more transparent mining operation.
Another major milestone in the year was the start of construction of the Aripuanã (MT) polymetallic project, which should be one of the mining industry’s sustainability benchmark operations in the coming years. It is a project that is being created without dams, utilizing dry waste treatment techniques and featuring low water intakes, since nearly 100% of the water will be treated and reused. We will also follow the innovative wetlands concept for the treatment of effluents. Furthermore, we are carrying out an extensive plan to train regional labor, with the goal of hiring workers locally for our operation while, at the same time, expanding the activities of the local economy. The prospecting projects in Peru, with emphasis on Magistral and Pukaqaqa, continue to make steady progress in the direction of also becoming viable soon.
Mining of the future
GRI 103-2, 103-3
Our strategic aspiration is to be globally perceived as a smart and reliable company, which grows with a focus on zinc and copper mining in the Americas, generating value for all stakeholders. This mandate was reviewed and approved in 2018 by the Board of Directors, when we reiterated our intention to grow competitively, based on two strategic axes – Growth and Operational Excellence – and eight enablers (People and Organization, Sustainability, Project Management, Commercial, Management of Risks, Technology and Automation, Logistics and Supplies and Capital Structure), which assist us in the execution and achievement of strategic objectives.
Business transparency, fairness, accountability and responsibility are principles that our organization highly respects and which we reaffirm every day, in line with international standards related to good corporate governance practices. We extract what is essential to the present, with a responsible view of the future, designed to generate value for us and for society. We go beyond efficiency and technical rigor; we seek to win over the trust of people and the markets. Our main policies are established by the Board of Directors and supported by four advisory committees: Finance; Compensation, Nominations and Governance; Audit (composed entirely of independent directors); and the newly created Sustainability committee. GRI 103-2, 103-3
In 2019, we met expectations for metal production and sales, in line with the projections we released throughout the year.
The production of zinc contained in the concentrate totaled 361 thousand tonnes, 3% below the volume produced in 2018, due to the lower average zinc grade, from 3.3% in 2018 to 3.2% in 2019, and to lower treated ore volume in the mines in Peru. Copper and lead production followed the same trend and decreased by 2.2% and 1.8%, to 38 thousand and 51 thousand tonnes, respectively. Our total production of metals, calculated in zinc equivalent, corresponded to 564 thousand tonnes, a decrease of 1.9% over the previous year.
During the year, our smelters continued to deliver positive performances with sales of metallic zinc and zinc oxide reaching 621 thousand tonnes, 1% higher than that recorded in 2018. This result was driven mainly by the higher sales volume at the Cajamarquilla and Juiz de Fora units, which increased by 2.4% and 9.4%, respectively.