Nexa Resources resumes operations at Cerro Pasco after protests end

LUXEMBOURG - Nexa Resources S.A. (NYSE:NEXA), a mining company with a market capitalization of $638 million and annual revenue of $2.8 billion, announced Tuesday that it has fully resumed operations at its Cerro Pasco Complex in Peru following the end of illegal protests by members of the San Juan de Milpo community.

The mining company reported that both the Atacocha and El Porvenir mines have returned to normal capacity utilization levels after protesters had blocked access to the facilities. The temporary disruption resulted in an estimated loss of approximately 1,200 tonnes of zinc production.

Nexa expects to recover the lost production volume in the coming month and confirmed that its 2025 production guidance remains unchanged despite the interruption.

The company stated it remains committed to maintaining constructive dialogue with local communities and authorities in the regions where it operates.

Nexa Resources is a large-scale polymetallic producer with operations across Latin America, including four underground mines in Peru and Brazil, one open-pit mine in Peru, and three smelters in Brazil and Peru. According to the company’s press release, Nexa ranked among the top five producers of mined zinc globally in 2024.

The resumption of operations at the Cerro Pasco Complex is significant for the company as it works to maintain production targets for the year. The complex is part of Nexa’s portfolio of long-life mining assets in the Central Andes region of Peru.

In other recent news, Nexa Resources announced the temporary suspension of operations at its Atacocha and El Porvenir mines in Peru due to illegal blockades by the San Juan de Milpo community. The company stated that there has been no significant impact on production so far, as they continue with critical activities to maintain safety and facility upkeep. Additionally, Nexa Resources temporarily halted operations at the Cajamarquilla smelter following a strike by operator employees, although operations have since resumed after successful labor negotiations.

Morgan Stanley downgraded Nexa Resources from Equalweight to Underweight, adjusting the price target from $7.00 to $5.00. This downgrade was influenced by a revised outlook on zinc prices, which could affect the company’s financial results. Despite these challenges, Nexa Resources has restored normal operations at the Cajamarquilla smelter after reaching an agreement with the labor union. The ongoing developments reflect the company’s efforts to navigate operational challenges while maintaining dialogue with various stakeholders.

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