Nyrstar: Restarted Coricancha to reach annual rate of 20,000oz gold this year

Thursday, November 4, 2010

Belgium-based multinational Nyrstar restarted production at its 100% owned Coricancha polymetallic mine in Peru in Q3, the company said in a statement.

Operations at the mine had been suspended since May 2008 while a new tailings facility was built.

Coricancha is expected to reach its initial annual production rate of 20,000oz of gold, 1Moz of silver, 5,000t of zinc in concentrate and 3,000t of lead in concentrate by year-end.

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Nyrstar is also working on an exploration program at Coricancha to increase mineral resources and reserves, allowing for an expansion of the scope and scale of operations in 2011.

The company also has the polymetallic Contonga and Pucarrajo mines in Peru's Ancash region that were acquired earlier this year for US$23mn.

The company is in the process of ramping up combined output at the mines to 40,000t/y of zinc in concentrate, 4,000t/y of lead in concentrate, 1,000t/y of copper in concentrate and 1.5Moz of silver.

Nyrstar is the world's largest zinc producer. In the first nine months of 2010, its global zinc output increased 35% to 785,000t from 580,000t in the year-ago period. The company produced 256,000t in Q3.

In addition to Peru, the company has mines in the US and Finland; a project in Greenland; and smelters in France, the Netherlands, Belgium, the US and Australia; and has a 50% stake in a zinc alloying operation and a die-casting plant in China.