Dowa is a minority partner in Tizapa Mine.
Dowa Mining Company Ltd.
Japan's Dowa Mining Co Ltd has decided not to restart a zinc mine in Mexico closed since December 2001, as depressed zinc prices show no sign of recovering, a company spokeswoman said on Thursday (23Jan03).
The Rey de Plata mine, owned 51 percent by Mexico's Industrias Penoles and 39 percent by Dowa, was shut down in the wake of tumbling world zinc prices and the peso's appreciation against the U.S. dollar.Although the Mexican currency has corrected downward recently, world zinc prices have been hovering around historically low levels, leading to the decision to permanently close the mine, she said.
Minera Tizapa, another Mexican zinc mine operated jointly by Penoles and Dowa, will continue production despite weak metal prices, as costs for operating the mine are lower than those for the Rey de Plata mine, the spokeswoman said. The Minera Tizapa mine monthly produces about 4,500 tonnes of zinc concentrate and 2,200 tonnes of lead concentrate from around 50,000 tonnes of ores. The decision to close the Rey de Plata mine permanently will not have an impact on Dowa Mining's earnings in the current business year to March 31.
Press Release (Reuters) 23Jan03
Japanese company owns 39% interest in Tizapa polymetallic massive sulfide deposit in Guerrero along with Peņoles (51%) and Sumitomo (10%). Formed a JV called Compania Minera Tizapa in 1992. Mexican government has maintained 2.5% nsr. Located 270 km W of Mexico D.F., Tizapa reserves are reported at 4 M tonnes at 6.99% Zn, 1.64% Pb, 0.555 Cu, 288 grams Ag and 1.67 grams Au. Operation began production in late 1994 to early 1995 at a rate of 1000 tpd.