Peñoles Mines - Mexico. Lessons learned on Concentrator’s Commissioning and Expansions

"Industrias Peñoles, S.A. de C.V. – Mining Division, has initiated in the last ten years, six Mining Operations (Bismark, Tizapa, Ciénega, La Herradura, Rey de Plata, and Francisco I. Madero) and it has expanded several of their existing Operations (Sabinas, Fresnillo, Tizapa, Ciénega) one or more times.This work aims to share the experiences learned on this growing process. Some of these lessons are: 1) Project leaders must have a leadership that fosters good communication and team work; and this leadership style must come from top management. 2) A good communication must exist between the personnel from Engineering, Construction, and Operation. Also, this good communication must come from top management. 3) Starting the project with a solid Engineering Study. 4) Do not misunderstand cost with cost/benefit; always look at the cost/benefit. 5) Selecting good Contractors and good Suppliers. 6) Good training before the project commissioning is essential to reduce the learning curve period, this is even more important in areas where local people do not have any background in mining activities. 7) Recognizing that any project has a learning curve and it must be reflected on the production budget. 8) Avoid an over optimistic Mine preparation time schedule.BACKGROUNDIndustrias Peñoles S.A. de C.V.The mission of Industrias Peñoles, S.A. de C.V. (Peñoles) is to add value to non-renewable natural resources in a sustainable manner. Peñoles seeks to build long-term shareholder value; provide their customers with the highest quality products and services; maintain productive longterm relationship with their suppliers; develop and promote the capabilities of their personnel; foster mutually beneficial relationship with the communities in which it operates, and preserve the environment.Peñoles was established on 1887. It is a Mining Group with integrated Mining, Smelting and Refining operations of non-ferrous metals, and also produces inorganic chemistry materials. Peñoles is the main World producer of refined silver, metal bismuth, and sodium sulphate; Latin American leader in the production of refined gold, lead, and zinc.The Mining Group is made-up of nine mining operations producing concentrates with high gold, silver, lead, zinc, and copper contents. It produced in 2002, 365,900 ounces of gold; 52.7 million ounces of silver; 86,820 tonnes of lead; 266,000 tonnes of zinc, 11,840 tonnes of copper; with a total values of 3,780.6 million of Mexican pesos (~ $ 378.0 million U.S. Dollars)."