Business & Industry
Jan 31, 2016
A Fortune of Mine
Nowadays, metals like silver, gold, lead and zinc are vital commodities in our daily lives. From cell phones to renewable energy and medical equipment, these precious and base metals form the building blocks of our society. Demand for most metals continues to climb as the world's population rises and standards of living improve in developing countries.
Fortuna Silver Mines contributes to this growing demand by producing metals responsibly and by making a lasting contribution to local communities where they operate. Formed in 2005, the company has established a reputation as an efficient mine builder and strong operator. Today, Fortuna is one of Latin America's fastest-growing silver producers.
Fortuna plans to supplement an organic growth by selectively pursuing accretive acquisition opportunities in the Americas. With the implementation of several measures, such as focus on operational efficiencies to reduce cash costs, expansion of the San Jose Mine from 2,000 to 3,000 tpd and conducting engineering studies at the Caylloma Mine to assess plant optimization opportunities, the company features a sustainable growth strategy. Fortuna operates two, underground silver mines in Latin America: the San Jose Mine in Mexico and the Caylloma Mine in Peru.
The San Jose mine was commissioned in July 2011 and began commercial production in September 2011. In September of 2013, it was expanded from 1,150 to 1,800 tpd and in April 2014, it was further expanded to 2,000 tpd without incurring in additional capital investments. The mine is located in the Taviche Mining in the southern portion of the state of Oaxaca.
The silver- and base metal-rich epithermal deposits of the Caylloma Mining District of southern Peru have been mined intermittently for over 500 years since the times of the Inca Empire. Production is sourced primarily from the silver-polymetallic Animas vein (95%), with the balance from the Bateas vein. Caylloma is located approximately 225 kilometers northwest of Arequipa, Peru. The mine, processing plant and related infrastructure are located in the Caylloma Mining District. The mine is connected to the national power grid and water is locally available.
Health and Safety
Ensuring the health and safety of employees is among the core values of Fortuna. There is no tolerance for unsafe acts or conditions. As an organization, they believe that it is possible to prevent all injuries and occupational illnesses by employing the best safety and health practices. Management is also responsible for ensuring a safe workplace by minimizing hazards and providing training and safe equipment. The company encourages a strong safety culture that empowers all employees to report and address safety issues. For this, Fortuna maintains an integrated program of employee training and workplace inspections at all operations, expecting similarly rigorous procedures from contractors. They assume the responsibility to identify safety and environmental hazards to evaluate and control risks and impacts of the operations and explorations, maintain an optimum level of preparedness in the event of an emergency, encourage and promote employee well-being among the workforce and maintain responsible and timely communication with workers and stakeholders.
Throughout the organization, Fortuna interacts proactively with authorities and communicates transparently and openly about the activities. In addition, starting at the earliest stages of project development, they work directly and collaboratively with local communities to protect and preserve the environment. The responsible use of natural resources and protection of the environment starts at the mine sites, where sustainable resource planning and development to minimize impacts is applied. Employees are trained to respond quickly and effectively to an environmental incident.