Luxembourg headquartered, Nexa Resources, a major player in worldwide zinc market has acquired 9pc stake in Tinka holding.
Tinka Holdings is an exploration and development company that owns Ayawilca zinc-silver project in Peru. The project is estimated to contain 1.8bn lbs of indicated zinc.
Nexa produces zinc in Latin America with several base metal mines in Peru and owns the only zinc smelter in the country. Nexa has string presence in both Peru and Brazil. Ayawilca is categorized under one of the largest zinc projects in Peru. This will give Nexa the edge to increase its total zinc production. The company estimates 2022 total zinc production to rise by 7pc.
Nexa owns and operates three smelters, two located in Brazil and one in Peru named Cajamarquilla, which is the largest smelter in the Americas. Nexa was in the top five producers of mined zinc globally in 2020 according to Wood Mackenzie.
Nexa in 2020 reported zinc production at 313,000mt, down 13pc from 2019 mainly driven by the decrease in processed ore volumes in their Peruvian mines, which were affected by the government-mandated temporary shutdown in response to the COVID-19 outbreak.