Carlos Silva Ramos, CEO, Santa Cruz Silver Mining • Interview
What role does Mexico play within Aura Minerals’ international business strategy, and why did the company decide to invest here?
When I joined Aura Minerals, we had projects in Honduras and Brazil. Previously, Mexico was not the best place to mine. Today, Mexico is becoming one of our major operations. The more we learn about Mexico, the more we see it is a top-tier place to invest in the world. Based on our analyses done since we reopened operations here, there are three things we like about Mexico: it is a natural mining country; it has all the mining infrastructure, suppliers, parts, technology, and know-how, together with excellent labor; and the legal framework and processes for acquiring and renewing permits and concessions are in place. Though there is room to improve, when we compare Mexico to other countries, it is transparent and has straightforward processes. We are currently looking for opportunities either to invest in other projects in Mexico or to expand our existing production.
When will Aura Minerals invest in exploring its early-stage targets?
In the first year, we focused on how to restart the Aranzazu Mine. In the second year, we restarted it and focused on an efficient ramp up before starting production. Now, as we move into the third-year phase, it is about expanding our geological understanding and hopefully increasing our operation management to double capacity, though that will take a few more years. We now are close to 40 million pounds of copper equivalent in annual production from Aranzazu Mine. With our projected increase of 20-30%, this would take production close to 50-55 million pounds of copper equivalent annually; however, it will take at least 12 months to start this increase in production. That is our mid-term plan because we must do geological studies followed by technical studies before ramping up production.
What is the main objective behind your 360-degree mining concept?
With our 360-degree mining concept, we bring a different way to manage mining companies that has less structures, less layers, and less centralized decision-making processes. To do this, you must create an environment where middle managers understand the company’s values and how they should make decisions. Managers must fully analyze their impact on the environment, the society, and communities, as well as employees before making decisions. Then, they need to consider the values inside each of these three categories. For example, a value we are promoting is safety. Another is how to hire staff, manage the best talent so they grow and progress, and help those who perform poorly. This 360-degree management approach and its underlying values lead to fast decision-making.
How is Aura Mining developing these 360-degree mining’s concepts locally?
Empowerment means providing a rewarding and meaningful opportunity to approximately 3,000 people in six countries, in a wide variety of trades and professions. We give employment preference to the people from communities where we operate. Over 85% of our workforce are locals. Creating job opportunities for them is one of the most powerful positive social benefits of our business, especially when we are able to offer new opportunities for women, youth, and residents of remote areas with limited alternatives. We promote an inclusive and diverse environment where every professional is valued and respected for who they are and has the opportunity to develop their potential. We also work with local governments, community leaders, and NGOs to contribute to community needs: local development, quality of life, and education. Investing in these areas is the best way for us to contribute to building self-sustaining communities that will continue to prosper after our operations end. For instance, in Concepción del Oro, we work with the mayor and the National Employment Service to prepare people for the job opportunities at Aranzazu and other companies or help them to create their own business. ✖
Investing million in exploration in Mexico
Aranzazu Mine produces million pounds of copper equivalent per year