Ann: Preliminary Approval for up to US$657m in Funding from EXIM, page-339

Looks like Teck Resources is very busy in Mexico trying to get a new zinc mine going.
So not sure they would be our equity partner.
That leaves Helca Mining and Renco (aka Doe Run)
IBG better get a move on - Mexico will have several mines coming online over the next 5 years.
IBG's Citronen targeted annual Zinc production at 130,000tpa would still be the largest compared to any of the potential mines below

Mining companies are advancing projects which could deliver a surge in zinc production in Mexico, and potentially take advantage of a recent uplift in prices.

Firms reported progress on the development and studies fronts, as well as on plans to seek new partners or owners, for five of the country’s top zinc assets in recent months.

Combined potential production from three of the five projects exceeds 200,000t/y.

Mexico produced 600,000t of zinc last year, according to US Geological Survey data, ranking sixth globally.

Prices of zinc – which is used mainly to protect steel and iron from corrosion – have risen over the past 12 years, and are currently around US$1.50/lb, compared to under US$1.0/lb in mid-2020.

MEXICO TOP ZINC PROJECTS - UPDATES

1. Buenavista Zinc

Zinc output: 100,000t/y

Southern Copper is pushing ahead with its US$413mn Buenavista zinc project, which will deliver about 100,000t/y of the metal plus 20,000t/y copper.

The project involves constructing a zinc concentrator at Buenavista, currently Mexico’s biggest copper mine.

“We expect to initiate operations in 2023,” CFO Raúl Jacob told the company’s Q3 earnings call in October.

“When completed, this new facility will double the company’s zinc production capacity and provide 490 direct jobs and 1,470 indirect jobs.”

At end-Q3 Southern Copper had invested US$197mn in the project, with an engineering study complete and procurement 93% advanced and all necessary permits in place.

2. San Nicolás

Zinc output: 91,000t/y

Teck Resources is stepping up its search for a partner to advance its San Nicolás project, which has the potential to become one of Mexico’s biggest zinc mines.

A prefeasibility study in H1 outlined a large, economically attractive project, producing 65,800t/y copper, 91,000t/y zinc, 17,500oz/y gold and 2.1Moz/y silver over a 15-year life.

The company increased its capex estimate to US$842mn from US$814mn in the PFS as a result of subsequent updates.

Teck has begun interviewing potential partners with expertise of operating in Mexico to take the asset forward, CEO Don Lindsay told the Scotiabank Mining Conference in late November.

“In San Nicolás’ case, we’ve been having detailed discussions with a number of parties and we’re getting closer to making a final choice there,” he added.

The company is seeking a partner to bring both financing and expertise to get the project built in the near term, Lindsay said, which would allow Teck to focus on its QB2 and QB3 copper expansion projects in Chile.

“We want to be able to rely on partners who have excellent expertise in the geographical jurisdictions where the projects are,” he added.

An announcement is expected in 1Q22.

Teck said previously that it intends to apply for permits and start work on a feasibility study by end-2021, with production potentially starting in 2026.

3. Cordero

Zinc capacity: Unknown

Discovery Silver is aiming to advance its Cordero project toward production after completing an updated PEA in November.

While the Chihuahua state asset is primarily a silver project, with the precious metal accounting for half of life-of-mine net smelter return, zinc will play a substantial role, peaking in years 9-10 of the 16-year initial mine life.

Lead and gold are smaller byproducts.

Zinc production figures were not given in a Discovery release that pegged output at 26Moz/y silver equivalent.

The PEA put Cordero capex at US$368mn. Discovery plans to complete a PFS next year.

An October estimate for Cordero showed measured and indicated resources contain 6.1Blb (2.8Mt) zinc.

4. Pitarrilla

Zinc output: 22,900t/y

SSR Mining is weighing up a sale of its Pitarrilla project (in picture), one of a string of primary silver projects to be shelved amid falling prices in 2014.

“Clearly Pitarrilla is a new jurisdiction for us in Mexico. And size and scale is probably not of the type that we’d want to keep it [in]… the portfolio,” CEO Rodney Antal told the firm’s Q3 earnings call in November.

A review is underway to look at possible sales of assets including Pitarrilla, he added.

A 2012 technical report put initial capex at US$741mn, with production at 10.1Moz/y silver, 22,900t/y zinc and 8,000t/y lead over a 30-year mine life.

5. Metates

Zinc capacity: None

Chesapeake Gold’s Metates project hosts one of the world’s largest undeveloped gold, silver and zinc deposits, with reserves of the industrial metal of over 4Blb (1.8Mt).

While the company has made a significant step forward in the shape of a new PEA, zinc will not play a role in Metates’ revenues under the proposal.

“The processing method proposed for this technical report is not designed to recover saleable zinc metal,” the study, prepared by M3, said.

The PEA – which envisages use of sulfide leaching technology to solve previous metallurgical challenges – puts initial capex at US$359mn and production at 91,000oz/y gold and 2Moz/y silver over a 31-year mine life.

CEO Alan Pangbourne told BNamericas previously that the aim is to get Metates into production in 2025.