Mining operations

The Campo Morado mine is located in Guerrero State, Mexico. The area comprises 11,813.9 hectares in six mining concessions that are some 160 kilometers south-southwest of Mexico City. The mineral deposit currently being mined is the G-9 deposit, which achieved commercial production in April 2009 and comprises high grade zinc, copper, lead, gold and silver. In addition to the G-9 Mine, there are four additional ore bodies that have been delineated as JORC compliant resources (Reforma, El Largo, El Rey and Naranjo).

The Contonga and Pucarrajo mines comprise approximately 4,900 hectares of mining concessions, located 500 kilometers north of Lima in the Ancash region, which is well known for its significant zinc, lead, silver, gold and copper deposits. The Contonga mine is an underground poly-metallic mine with more than 25 years of operating history, and is currently producing approximately 660 tonnes of ore per day. The Pucarrajo mine is an underground polymetallic mine which has been in operation for more than 30 years, and was operating at approximately 1,000 tonnes per day before it was put on care and maintenance in 2008 due to weak metal prices. The Contonga and Pucarrajo mines are managed in conjunction with the Coricancha mine by a single experienced management team, utilizing the shared services of Nyrstar’s Lima office.

The Coricancha mine is an underground poly-metallic mine with more than 60 years of operating history, which comprises a 600-tonne per day ore processing facility, underground mine and reserves and resources containing gold, silver, zinc, lead and copper. The mine has three main product streams, comprising gold/silver dore, zinc concentrate (suitable for treatment at Nyrstar’s European and Hobart smelters) and lead concentrate high in precious metals (suitable for treatment at Nyrstar’s Port Pirie smelter). The Coricancha mine is managed in conjunction with the Contonga and Pucarrajo mines by a single experienced management team, utilizing the shared services of Nyrstar’s Lima office. The Coricancha mine is located (approximately) 90 kilometres east of Lima, Peru in close proximity to a number of other significant mining operations and exploration properties.

The El Mochito mine is located in north-west Honduras near the town of Las Vegas in the Department of Santa Barbara. The El Mochito mine has been in operation since 1948 and has a long history of reserve replacement and promising exploration potential.

The El Toqui mine is located 1,350 kilometres south of Santiago, Chile and 120 kilometres northeast of Coyhaique in a region with a well-known history of poly-metallic mineralisation. The El Toqui mine has been in operation since 1983 and has a long history of reserve replacement and promising exploration potential.

The Langlois mine is located in north west Québec, approximately 50 kilometres north east of the town of Lebel-Sur-Quévillon. Commercial production first commenced at the Langlois mine in July 2007; however, the mine was placed on care and maintenance in November 2008 due to declining zinc prices and a lack of development. Production is planned to restart in the first half of 2012. The Langlois mine is in a prospective region with promising exploration potential.

The Myra Falls mine is located in a provincial park in central Vancouver Island and linked by a 90 kilometre asphalt road to the port of Campbell River. The Myra Falls mine has been in operation since 1966 and has a long history of reserve replacement and promising exploration potential.

Nyrstar has an agreement with the Talvivaara Mining Company to receive 100 per cent of its zinc in concentrate production until a total of 1.25 million tonnes has been reached. The Talvivaara Mining Company Plc. is a base metals producer with its primary focus on nickel and zinc. The company’s main asset is the nickel mine in Sotkamo, Finland.
The two poly-metallic deposits – Kuusilampi and Kolmisoppi – comprise one of the largest known sulphide nickel resources in Europe. The 642 million tonnes of ore, in measured and indicated categories, are estimated to be sufficient to support anticipated production levels for more than 60 years. Production at the mine started in October 2008 with the precipitation of the first metal sulphides. The Talvivaara Mining Company Plc. is currently ramping-up their planned nickel production to 50,000 tonnes per annum (tpa), with by-products of approximately 90,000 tpa of zinc in concentrate, 15,000 tpa of copper in concentrate, and 1,800 tpa of cobalt.
Talvivaara will deliver 100% of its zinc concentrate production to Nyrstar until the 1.25 million tonnes of zinc in concentrate has been delivered (equivalent to approximately 2 million tonnes of zinc concentrate at a grade of 65%). In addition to the US$335 million purchase price, Nyrstar will pay Talvivaara an extraction and processing fee of €350 per tonne of zinc in concentrate delivered (with escalators in relation to the price of elemental sulphur and propane), as well as the following price participation:
- until the later of the seventh anniversary of the agreement (January 2017) or
  delivery of 600,000 MT of zinc in concentrate, Nyrstar will pay to Talvivaara 10% 
  of the zinc price exceeding US$2500 per tonne (up to US$3000 per tonne), and 
  30% of the zinc price exceeding US$3000 per tonne; and
- thereafter, Nyrstar will pay to Talvivaara 30% of the excess of the zinc price 
  above the €350 per tonne processing fee.

NTM was officially formed in December 2009 when the operations at Middle Tennessee (MTN) and East Tennessee (ETN) were consolidated. The MTN operations consist of three underground zinc mines; Gordonsville, Elmwood and Cumberland and a processing plant, all located in Smith County, Tennessee. The ETN complex consists of a mill and three underground zinc mines; Young, Coy and Immel. The mines are located in and around Knox, Jefferson and Grainger counties.