Milpo Weighs Expansions as Peru Mines Generate $275 Million CashJohn Quigley
Cia. Minera Milpo SA, the Peruvian zinc, lead and copper producer, has more than $275 million in cash ready to invest in mine projects and possible acquisitions, Chief Executive Officer Victor Gobitz said.
The company based in Lima is looking into an expansion of Cerro Lindo, the largest of its three mines in the country, and is evaluating investing in five other projects including one in Chile, Gobitz said in an interview in Arequipa today.
“The three operations are generating positive cash flow,” Gobitz said. “This money will be used when we define which projects in our portfolio we develop or possibly if an acquisition opportunity arises.”
Peru’s third largest zinc producer is preparing to expand as its existing mines operate at full capacity, producing 25,000 metric tons a day. Output probably will remain at that level through next year, he said. The unit of Sao Paulo-based Votorantim Metais plans “marginal investments” in the next two years to boost output and lower costs at existing mines.