The Plomosas zinc/lead/silver mine, in Mexico, will move to an owner-operated mining operation, after ASX-listed Consolidated Zinc terminated the mining contractor, citing “significant deficiencies” in its performance.
The company believes that bringing mining contracting services in-house will have many benefits, including improving performance by working with a single on-site management team involved in all aspects of mining, by focusing on quality over quantity of material delivered to the surface, and savings by eliminating the contractor profit margin.
MD Brad Marwood commented that it was the right thing to do to use a mining contractor to start the Plomosas mine, but that, after 12 months of growth, he was confident that the company could deliver superior outcomes.
The capital required for mining equipment and spares was less than $320 000 and equipment leases were available for major items.