Peñoles Plans to Produce 270,000t of Zinc in 2024

Industrias Peñoles aims to consolidate its zinc production at its plant in Torreon, Coahuila, targeting 270,000t by the end of 2024, stated Rafael Rebollar, Director, Peñoles. While the forecast is optimistic, Rebollar emphasized the importance of monitoring the US and European elections, as most of its zinc production is exported to these regions.

Rebollar noted that this target is nearing the goal set during the 2019 expansion of the zinc plant, which aimed for an annual production of 370,000t. "Our operations are generally good. In Met Mex, the zinc plant operations in Torreon are stable, and we are expecting strong production this year," said Rebollar to Milenio.

He emphasized that mining is a long-term sector requiring significant capital investments and extended recovery periods, highlighting the need for certainty in the industry. Rebollar stated that the company has implemented new strategies to navigate uncertainties, including cost reductions and changes in mining methods to enhance productivity. “The price of zinc was at US$1.60 and is currently between US$1.10 to US$1.15 per pound, a 25% drop, which impacts us as we are significant zinc producers."

In 2023, the price of zinc fell by 16.5%, and refined zinc production decreased by 4.7%. The reduction followed the temporary suspension of certain operations, which limited production capacity from 350,000t to 270,000t annually. 

“In Mexico, we should focus on generating investment and employment and finding ways to keep Mexico competitive. The global outlook remains uncertain, but this is not the first time, and we must learn to navigate these variables," said Rebollar.