Votorantim Advances Phase II Expansion of Peruvian Zinc Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--Brazilian mining company Votorantim Metais (Sao Paulo) is investing $400 million to complete a Phase II expansion at the Cajamarquilla zinc refinery in central Peru. With the implementation of Phase II, Cajamarquilla will increase production from 160,000 tons per year to 320,000 tons per year. The expansion is due to be completed in the fourth quarter of 2009. Outotec (HEL:OTE1V) (Espoo, Finland) was awarded a contract to supply an ustulation plant, a sulfuric acid plant and a gas treatment unit.

The company concluded Phase I of the project in September 2007, increasing production from 130,000 tons per year to 160,000 tons per year. Phase I cost about $100 million.

In order to strengthen the company's position as one of the world's largest zinc producers, Votorantim is also moving forward with two brownfield projects in Brazil to expand its metallic zinc production capacity in the next few years. The company will invest $230 million in the Vazante unit to increase zinc production from 152,000 tons per year to 200,000 tons per year by the end of 2012. In addition, about $247 million will be spent on the Tres Marias zinc hydrometallurgical plant to increase capacity from 180,000 tons per year to 260,000 tons per year. This project is expected to be complete by the end of 2010. For details, see related May 16, 2008, news article - Votorantim Metais to Expand Metallic Zinc Production in Brazil.

Votorantim Metais, which began its activities in the zinc market in 1956, is also one of the largest electrolytic nickel producers in Latin America and the third-largest Brazilian long steel producer. The company bought Cajamarquilla for $210 million from Teck Cominco Limited (NYSE:TCK) (Vancouver, British Columbia) in 2004.

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