Construction of Sierra Metals’ 500,000mt iron ore plant at its Bolivar mine in Mexico is expected to start in June with the company’s board approving a $28mn investment for the project. A sum of $5.2mn is approved for initial procurement and contracting for the project. The magnetite processing plant is forecast to produce 500,000mt 62pc iron ore fines concentrate annually.
Final engineering and test work are underway at the site and the construction of the plant will be completed in six months. The magnetite concentrator will share processes with the existing copper concentrator plant, which has a series of magnetic drums and regrinding equipment, leading to cost efficiencies. The new plant could improve Sierra’s sales revenue and reduce future costs.
Speaking on the project, CEO of Sierra Metals Luis Marchese saidthe iron ore market presents value addition opportunities and the company is keen to extract value from its existing iron ore-copper resources. Also, the project is likely to benefit the company by reducing haulage costs of the copper operations and enhance the mine’s economics due to the new revenue stream.
Sierra Metals is a Canadian miner developing and producing precious and base metals from its Yauricocha mine in Peru and Bolivar and Cusi mines in Mexico.