The Business Year Special Report
Ricardo Porto, CEO, Nexa Peru
Peru is currently a strategic country for Nexa, with two-thirds of its income generated in the country.
Nexa is part of an economic conglomerate, Votorantim Group, one of the largest in Latin America. What benefits has it brought to your more specific operations?
In general, being part of the Votorantim Group brings levels of knowledge that are important for the development of construction. We managed to attract better resources and people. Mining suffers from global rejection, not only in Peru. Being part of a group recognized for its ethics and values also helps us open doors. We have 100 years of operation, 100 years of good relationships with communities, and 100 years of development. We are in more than 20 countries. All these are important for Nexa’s objective, which is to grow. Having Votorantim behind us helps us open doors of the market, the government, and investors.
The company is listed on the New York and Toronto stock exchanges. What strategy does the company implement to attract new investors?
Company recognition is essential. The company must be reliable, and it must have a solid relationship with the community and a long-term sustainability plan. Those are three key points for any company, and these are even more important in the mining sector. The largest group of investors will see their investment under a sustainability lens, so for us, sustainability is key. We want to be recognized in that way. The group has 100 years of operations, and Nexa has 60 years in Brazil and Peru. We have a history of solid community relations and of being the first mine to use desalinated water in Peru. All this is how we want our investors to perceive us.
How have you maintained solid relationships with the community through the years?
It is a matter of respect. For us, this has been a priority issue. We have always had great relationships because we have always worked with a clear vision of bringing benefits to communities and having a long-term relationship. Maintaining a great relationship with the communities around us is, more than ever, the main point of development of a mining project. A mining project is not only a great engineering project or reserve; it is also about where we are located and how we are recognized. Every day, some names in the industry are rejected immediately because they have a history of problems. There are regions of the world, not only in Peru, where mining is rejected. Knowledge is key; it is a factor of competitive advantage to develop projects. For example, the whole world will need a large amount of copper. With the shift toward the use of electric cars, the demand for copper will increase. Copper consumption will be extremely large and important compared to the situation right now. We will need more mines. Currently, there are projects that have been approved for 10, 12, or 15 years. The challenge is to achieve faster approval of projects, mainly by having a good project. For example, consuming water as little as possible, recirculating it, having no waste, and so on. The community must perceive that a mining project will directly benefit them. All executives in the sector have this concern: how can one be perceived in the best way possible by the society where it operates.
What are your medium and short-term goals?
We want to develop the low-carbon, productivity, security, and circular economy. We must try to bring new ideas. For example, underground ventilation is extremely important. Almost all of our operations are underground, and ventilation is important, not only for energy consumption but also for the well-being of people. Having this system fully automated reduces consumption and improves quality. This is one of the issues that we are working to improve. In terms of the circular economy and reusing our waste, we are seeing how to work with more electricity, such as electrifying our vehicles instead of using diesel trucks.