The most important mine in the country reveals in its 2023 Sustainability Report that during the last management its Zinc-Silver production decreased by 15%; while lead-silver also rose by 15%.
Potosí, June 2024.- Minera San Cristóbal (MSC) consolidates its position as a leader in mining sustainability. Its 2023 Sustainability Report, titled “Forging Opportunities” in line with the company’s future projection, reveals that while the production of zinc-silver concentrate was reduced by 15%, that of lead-silver increased by 15% compared to the previous year.
This strategic adjustment responds to fluctuations in metals markets and the optimization of internal processes to maximize operational efficiency. “The shareholders of San Cristobal Mining Inc. have the purpose of becoming, on the basis of Minera San Cristóbal as a leading company in the country’s mining industry, one of the next large silver producers in the world,” states in his letter to readers the CEO Joseph David Assels.
From this perspective, the transfer carried out last year of MSC from Sumitomo to San Cristóbal Mining Inc. constitutes a first milestone, given its important production profile and the healthy useful life of the mine; but also the potential for organic growth through the silver oxide project and the prospecting it carries out in other areas.
San Cristobal Mining Inc. maintained MSC’s operational and management team to ensure a flowable transition and maintain the mining operation. Thanks to this, last year, despite facing great logistical challenges, among them, a fire in Puerto Mejillones (where it exports concentrates) that temporarily interrupted port operations, with tenacity, resilience and efficiency MSC made a logistics change of great magnitude with high operating and extraordinary costs that allowed the continuity of shipping operations. After 348 days without port activity, in September 2023, operations from Puerto de Mejillones were reestablished.
Economic and fiscal impact
Despite a significant 32% increase in concentrate sales volume, its value decreased by 5%, due to unfavorable prices and higher treatment and ocean freight costs. Gross margin contracted by 4.9%; which reflects the global and sectoral economic challenges that affect the mining industry.
In fiscal terms, MSC paid 209.1 million dollars in taxes and 42.5 million dollars in royalties. This not only represents its contribution to Bolivia’s economicdevelopment, but also strengthens its position as a key player in the national mining panorama.
In its sustainability report “Forging Opportunities”, MSC states that – in accordance with its commitment to the environment and local communities at the center of its philosophy – last year the company managed to maintain its record without environmental incidents or sanctions, thanks to responsible management of natural resources and mitigation of environmental impacts.
In the social area, it highlights initiatives such as the connection of electrical networks in nearby communities and the constant support for tourism ventures, through the strengthening of infrastructure and regional economic development.
Future perspective
“MSC’s 2023 sustainability report is a testimony to its resilience, leadership and commitment to responsible business practices, through which it is positioned as a role model in the Latin American mining industry,” says its president.
MSC operates to high standards of corporate governance, with an active board of directors and an audit committee that oversees transparency and compliance with financial and legal regulations. In 2023, the company received no fines or penalties, as a result of its proactive and meticulous approach to regulatory compliance.
“And in that sense – Assels asserts – we are committed to continuing to innovate and adapt to a dynamic global environment, while maintaining our commitment to sustainability, social responsibility and the well-being of the communities where we operate.”.