Environmental Review Summary
Project Number
10326
Company Name
Plata Panamericana, S.A. de C.V.
Date ERS Disclosed
Sep 5, 2002
Country
Mexico
Region
Latin America and the Caribbean
Environmental Category
A - Significant
Status
Completed
Previous Events
Approved : Feb 13, 2001
Signed : Jun 14, 2002
Invested : Mar 7, 2003
Sector
Silver
Industry
other
Department
Infra-WBG Dir. Minerals & Metals
Project Description
In February 2001, IFC''s Board approved an investment of US$28.6 million in a US$50.8 million project including US$20.3 million sunk costs (the Original Project) at the La Colorada silver mine in Mexico, which is wholly owned by Pan American Corp. of Canada (the Sponsor). The Original Project did not proceed for commercial reasons. Subsequently, the Sponsor has revised both the technical scope and the financing plan of the project. The revised project (the Project) has a new total cost of US$44 million (including US$24 million sunk costs) to be funded by an IFC A loan of US$10 million, with the balance of the funding to be provided by Sponsor equity.
The Original Project aimed to produce an average of 4.3 million oz. of silver per annum over a nine-year mine life. It was to consist initially of the construction of a 1,000 tons per day (tpd) oxide ore processing facility to produce silver and a small amount of gold in doré form. In a second phase, from years five to nine, half of the mill feed would be sulphide ore, to be processed by a conventional flotation plant to be built in year five.
The Project will now produce an average of about 3.1 million oz. of silver annually, operating at a reduced throughput of 800 tpd. It will consist of: (i) final improvements to an already operating 200 tpd flotation plant to process sulphide ore for the first 8 years of the mine life; (ii) the construction of a conventional cyanide leaching plant which will process 600 tpd of oxide ore for at least 12 years; (iii) installation of a second-hand 600 tpd grinding circuit for the processing of oxide ore; (iv) replacement of the existing 200 tpd ore crushing circuit with a second-hand 800 tpd crusher to be used for both types of ore; and (v) associated mine development of three veins to provide the necessary ore. The flotation plant is already built and has been operating successfully since early 2001. It produces lead and zinc concentrate which is sold to a smelter in Mexico. Other aspects of the Original Project, in particular the Sponsor''s commitment to environmental clean up (including reprocessing 500,000t of existing tailings), to provide clean water and other services to the local community, and to participate in the Zacatecas SME program, have not changed.
The Original Project aimed to produce an average of 4.3 million oz. of silver per annum over a nine-year mine life. It was to consist initially of the construction of a 1,000 tons per day (tpd) oxide ore processing facility to produce silver and a small amount of gold in doré form. In a second phase, from years five to nine, half of the mill feed would be sulphide ore, to be processed by a conventional flotation plant to be built in year five.
The Project will now produce an average of about 3.1 million oz. of silver annually, operating at a reduced throughput of 800 tpd. It will consist of: (i) final improvements to an already operating 200 tpd flotation plant to process sulphide ore for the first 8 years of the mine life; (ii) the construction of a conventional cyanide leaching plant which will process 600 tpd of oxide ore for at least 12 years; (iii) installation of a second-hand 600 tpd grinding circuit for the processing of oxide ore; (iv) replacement of the existing 200 tpd ore crushing circuit with a second-hand 800 tpd crusher to be used for both types of ore; and (v) associated mine development of three veins to provide the necessary ore. The flotation plant is already built and has been operating successfully since early 2001. It produces lead and zinc concentrate which is sold to a smelter in Mexico. Other aspects of the Original Project, in particular the Sponsor''s commitment to environmental clean up (including reprocessing 500,000t of existing tailings), to provide clean water and other services to the local community, and to participate in the Zacatecas SME program, have not changed.
