The origins of Votorantim Metais date back to 1956 with the founding of the Companhia Mineira de Metais (CMM). The company operates in the metals and mining industry in Brazil and Peru, with a focus on zinc and copper, and ranks among the four largest global producers of zinc. The company has sales offices in the United States, Austria and Luxembourg and undertakes mineral research and exploration activities, in order to extend the useful life of its existing mines and to identify new areas with mining potential.GRI 102-1GRI 102-1. Name of organization 102-4GRI 102-4. Location of operations
It has nine operating units, of which five are in Brazil and four in Peru. In Brazil, there are two mining and processing units in polymetallic mines, with high zinc content, two zinc metallurgy units and one sulfuric acid production that is temporarily suspended, all in the State of Minas Gerais. All of these units are located in the state of Minas Gerais. In Peru, it operates a zinc smelter, located in Cajarmarquilla, and holds a controlling stake in the mining company Milpo, which has three mining units that produce zinc, copper, silver and gold, two of which are located in the province of Pasco (El Porvenir and Atacocha) and one in the region of Ica (Cerro Lindo).GRI 102-4GRI 102-4. Location of operations
It sells its production to customers in a number of different industrial sectors. In the mining area it sells zinc, copper, lead, silver and gold in the form of concentrates. In the metal production area it sells zinc metal products (Special High Grade (SHG) ingots, jumbos and granules, Zamac, special alloys, and zinc powder); chemical products for use in agriculture (Zincal 200, zinc oxide, sulfuric acid, copper sulfate and sulfur dioxide); and cadmium.GRI 102-2GRI 102-2. Primary brands, products and/or services 102-6GRI 102-6. Markets served
In 2016, the company produced 652 thousand metric tons of zinc equivalent* in the mines and 608 thousand metric tons of zinc in the smelters. The company recorded a total net revenue of US$ 1.8 billion (equivalent to R$ 6.4 billion, at the average exchange rate for the year), an increase of 3% compared to 2015. At year-end, it had 5,387 employees and 6,941 contract staff via service providers.GRI 102-7GRI 102-7. Scale of the organization
*This was the sum of the weight of all the zinc, copper, lead, gold and silver produced by Votorantim Metais, converted into metric tons of zinc, based on the differential of the reference prices of these metals in relation to that of zinc
In 2016, the aluminium and nickel businesses were segregated from Votorantim Metais and transferred to the Companhia Brasileira de Alumínio (CBA). This organizational change was due to the different characteristics and strategies for these market segments. Votorantim Metais defined its focus to be international activities in mining while CBA aspired to be a reference in the Brazilian market for transformed, high value-added, aluminum products and solutions.
Votorantim Metais is controlled by Votorantim S.A., the holding company of one of the largest business conglomerates in Latin America, and which will complete 100 years of activities in 2018. Votorantim S.A. controls operations in strategic sectors of the economy: metals and mining, cement, steel, energy, pulp, orange juice and financial institutions. In 2016, Votorantim S.A. recorded a net revenue of R$ 26.7 billion.GRI 102-5GRI 102-5. Nature of ownership and legal form
Increased participation in Milpo and changes in ownership structure
With the aim of consolidating its position as one of the main players in the global zinc market Votorantim Metais executed three capital markets transactions during the year, as follows: increased its shareholding in Milpo to 80.24% of the total capital; sold a participation of 10.65% in its own capital to minority shareholders; and authorized Milpo to make a tender offer on the local stock exchange, in which it repurchased 2.75% of its own shares.
After that, the company has asked Superintendência de Valores Mobiliários (SMV), the Peruvian public market regulator, for approval to delist Milpo from the Bolsa de Valores de Lima, the country’s stockmarket.GRI 102-10GRI 102-10. Significant changes in the organizational structure