Can you introduce Hochschild Mining and your presence in Brazil?

Hochschild Mining is a leading British-based silver and gold mining business operating in South America. It is headquartered in Lima, Peru, with a corporate office in London, and is listed on the London Stock Exchange. Hochschild Mining has a 100+ year history. 

In Brazil, our Mara Rosa operation, which is located in Goiás state, is already operational after an on-time and on-budget construction process. We entered Brazil in 2022 through the acquisition of Amarillo Gold, and moved quickly to build the Mara Rosa project, with the first gold pour and commercial production announced in February and May of this year respectively. 

The Mara Rosa project is a conventional open pit gold mine with a CIL processing plant with capacity of 7,000 t/d, and it has a life of mine average production of 80,000 Au oz/y. 

Our project is situated in a mining-friendly jurisdiction in Goiás, and we are pleased with our relationship with the local community and the infrastructure we have developed in the region.

Our positive experience in Brazil has encouraged us to continue growing in the country. As a result, we recently signed an agreement to purchase 100% of the Monte do Carmo project in Tocantins with a land package covering 21 mineral concessions across 82,000 hectares. We are confident in the region's exploration potential and are currently conducting drilling and optimization engineering studies, with a decision on the project due by the first quarter of next year.

What has been your experience with the state government and local infrastructure in Goiás?

The mayor and the state governor have been very supportive. The governor personally attended our foundational stone ceremony.
Since our acquisition announcement, the community has welcomed our development efforts. We have implemented ESG programs focusing on local employment and procurement, and over 37% of our workforce comes from the neighbor cities of Mara Rosa and Amaralina, and over 81% from the state of Goiás.

Why has Hochschild Mining chosen to focus on Brazil for future growth?

Brazil offers a robust institutional and regulatory framework that is attractive to international investors. The mining sector is well-regulated, local governments are supportive, and communities welcome responsible mining operations. Furthermore, the quality of the Brazilian workforce is outstanding and enables efficient project builds. 

What are the main challenges you foresee operating in the country?

The main challenges in Brazil are related to macroeconomic factors, particularly the volatility of the Brazilian Real and inflation. While these factors are currently offset due to high precious metals prices, we are cautious about future fluctuations. Additionally, the current Brazilian tax system is complex, and we are monitoring the advancement of the new tax schemes that could impact the mining industry. From an operational standpoint, we focus on maintaining efficiency regardless of metal prices. 

What are Hochschild Mining’s ESG commitments in Brazil?

Our robust ESG initiatives have been in place since before we started our operations. I will outline four of our key initiatives: Firstly, attracting talent and the training of local manpower; hundreds of people have participated in our training programs and now work with us as part of our local workforce.

As a second initiative, we have created an open space for educational visits and have received visits from thousands of students eager to learn about mining. This initiative received the 2023 Sustainable Goiás award from the local environmental agency. 

Third and very importantly, through our constant employee safety efforts we have been able to complete over 5 million working hours without lost-time injuries. 

Finally, we have invested in preserving a local state park, contributing to the region's environmental conservation.

What are your objectives for the next 12 months in Brazil?

Over the next 12 months, our primary objective is to ensure a strong operational performance at the Mara Rosa project. We will continue to establish the highest mining standards and practices for this new operation, leveraging over 100 years of experience. 

Our second objective is to advance the exploration and engineering optimization plans for Monte do Carmo as we aim to make an informed decision about developing this project by the first quarter of next year. Growing in Brazil is a significant strategic priority, and we are well underway to achieving it.