What are the main features of the Bolivian mining landscape in general, and San Cristóbal in particular?
Bolivia has incredibly well endowed mineral deposits of many different types - some of which have only recently been discovered or engaged. There are undeveloped lithium and copper resources and these have the potential to become some of the largest sites in the world. Since its 1540's discovery, the massive mountain near Potosi has produced up to 2 billion ounces of silver, resulting in a plethora of wealth for Bolivia, and a huge impact on the world economy The nominal production capacity of San Cristobal is 52,000 tons of dry ore per day, which is sent to the concentration facility for crushing, milling and, finally, passing through the flotation method. Currently, on an annual basis, we produce approximately 200,000 tons of zinc metal, 60,000 tons of lead metal, and around 15 million ounces of silver.
What are the main characteristics of your mining operation?
San Cristóbal is in the top ten of all silver producers in the world, and in the top fifteen of global zinc producers. We have an open pit mine, and, although low grade, the deposit is disseminated through a large volume of rocks. Our operations are extremely automated in terms of monitoring and work safety, and we keep efficiency in high regards. The mine has around ten years of life remaining, but we believe we can expand it as we further explore the site. A third of the concentrate that we obtain is sold to Europe, half to Asia and the remainder to Australia.
How do you perceive Bolivia's regulatory and societal environments in relationship with the mining sector?
The receptivity of mining and its importance in national economies dictates which jurisdictions are more appealing to mining companies. Nowadays, people seem to shine a negative light on this industry, especially in areas that are highly populated. We entered the mine 15 years after the initial production started, but this project (first developed by Apex) has always been mined at the highest ESG standards. The Social License tells exactly the story of how Minera San Cristóbal managed to thrive in this area using different mining techniques that support the wellbeing of the local community. The political situation in Bolivia has evolved over time, and now there is a general movement towards making the country more appealing for international investment in the mining sector. We have felt real support, and even eagerness, to help us get our projects on track - there are not many places in the world with the same attitude towards our industry. In comparison with other South American countries, where mining investment is not that well received, Bolivia's policy is moving in the right direction.
The industry is the structure underpinning the green transition - yet the general public often perceives it as negative. Is the industry doing a good job in communicating what it does?
We have a growing population and many people have moved into lifestyles that depend on more metals over time, regardless of the electrification movement. We are seeing an increased demand for all raw materials across the board, so we have to supply this need in responsible ways. However, at the moment, the mining industry is hamstrung because of lack of capital. The huge deficit in spending that has been going on for many years translates into few mining projects coming online in the near future.
Besides the investment needed to restart this industry, we are also in dire necessity of a skilled workforce.
The younger generation grew accustomed to ignoring mining as a possible career, and they would rather choose a tech job than dive into engineering, geology or environmental science. In order to work through these challenges, we must do a better job of explaining our processes in a transparent and trustworthy way that could attract investment.
The industry has much to learn in communicating its efforts to abide by environmental requirements. The negative view on our industry is more a warped perspective caused in part by our inability to show the intrinsic value of what we do. By showing we do not have the destructive profile we are accused of, we should be able to convince universities to collaborate with us to help build the next generation of experts who will make mining more environmentally friendly.
What are the main objectives that you would like to achieve in the next five years?
Thanks to the acquisition we completed one year ago, we made a new discovery with which we are progressing fairly rapidly; this deposit has polymetallic potential, and could represent the future of San Cristóbal. Given that the initial objective was to produce base metal concentrates, the large volumes of oxide silver mineralization were put aside. These 200 million ounces of unrecovered silver resources are now ready for development, so, in the future, we will look to transform them into profit. Alongside all these endeavors, we also plan to look for new opportunities across Bolivia to secure our position as the market leader here.
