Óscar González Rocha CEO ASARCO
Could you introduce us to Asarco?
Asarco has been a part of Grupo Mexico since 1999 and operates primarily in Arizona, where it possesses the Ray, The Mission Complex, and Silver Bell mines. The Ray operations, our largest operation, consist of an open-pit mine with a concentrator and a solvent extraction-electrowinning operation that generates copper concentrates, along with The Mission Complex, which also has its concentration plant. On the other hand, Silver Bell has proven to be profitable as it produces copper cathodes by a solvent extraction/electrowinning (SX/EW) operation, which has been beneficial for Asarco as it allows the selling of two different products. Moreover, Asarco owns the Copper Basin Railway, a local railroad transporting ore to the Ray concentrator to the smelter and sulfuric acid to the leaching facilities.
While we may not achieve the same recovery rates as those achieved in Buenavista del Cobre and La Caridad mines in Mexico or Toquepala and Cuajone mines in Peru, Asarco's results in Arizona are favorable considering the specific conditions of our operations.
How has Asarco performed during 2022, and how are you trying to solve labor shortage?
Asarco has achieved satisfactory production levels and has diligently adhered to the established program at each of its mines. However, when compared to other Grupo Mexico operations in Peru and Mexico, Asarco in US has been affected by cost implications stemming from labor availability concerns.
Currently, we confront a scarcity of personnel, resulting in operations functioning below our desired capacity. While we have undertaken personnel transfers from Mexico to the US, navigating the requisite authorizations for talent importation across jurisdictions proves difficult.
What are Asarco’s goals for the next years?
We aim to restore operations at the Hayden smelter and the Amarillo refinery to produce copper cathodes and rod, which are primarily sold in the eastern region of the US.
Lyndsay Potts General Manager at Pinto Valley CAPSTONE COPPER
Can you provide an overview of Capstone Copper’s operations in Arizona?
Pinto Valley is a copper-molybdenum open-pit mine and the only operating mine located in the historic Globe-Miami mining district of Arizona, one of the oldest and most productive mining districts in the USA. Pinto Valley is currently the second-largest private employer in the district. Pinto Valley has a current life of mine plan that extends through 2039 but is being assessed for possible extension and expansion. Pinto Valley produced 57,000 t of copper in 2022, and mineral resources stood at over 1.3 billion t or ore at year-end.
What opportunities is Capstone Copper evaluating to expand the potential of the Pinto Valley District?
Pinto Valley is located in one of the most prolific copper mining districts in the USA. Our land package contains private, patented land, with a very large resource endowment. Given this large resource, exploration for more copper has not been a priority. However, we continue to study opportunities to expand our operation including the evaluation of sulfide leaching to unlock value from our underutilized SX-EW plant. Finally, we maintain good dialogue with our neighbors in the Globe-Miami district, including BHP and Freeport McMoran. We believe that by working together we can expand production over the medium-term while also lowering costs and bringing significant benefits to many stakeholders in the district.
Is labor shortage affecting Pinto Valley’s operation?
In mining specifically, we struggle with the underrepresentation of women in our workforce, and at Pinto Valley we have launched an on-site chapter of Women in Mining Arizona. We also have a dedicated program to hire more veterans at Pinto Valley. Our focus is on recruiting locally. We are doing a lot of career fairs at local high schools and using social media. We’ve been successful, with the proportion of local workers now topping 70% from the nearest four towns.