Nexa gives up on Caçapava do Sul zinc-copper-lead project

Brazilian mining and metals company Nexa Resources has aborted its plan to advance the Caçapava do Sul zinc-copper-lead project in Rio Grande do Sul state. 

"Nexa informs that it will not continue the Caçapava do Sul project, which involved the extraction and processing of zinc, copper and lead ores, since it did not maintain economically viable parameters," the firm said in a statement.

The company announced its plan to develop Caçapava do Sul in 2016, when Nexa was known as Votorantim Metais. It was expected to produce 36,000t of lead, 16,000t of zinc and 5,000t of copper a year, involving capex of 371mn reais (currently around US$70mn).

Nexa said that although it cancelled the project, if another company is interested in acquiring the asset it is open to negotiate. 

"The company emphasizes that it continues to search for other business opportunities and that the Caçapava do Sul project may be continued with another company in the future, based on a new operating strategy and the completion of the necessary licensing processes," it said.