Nyrstar sells mothballed zinc mine in Mexico for $20 million

Global metals business Nyrstar has sold its Campo Morado zinc mine in Mexico to Telson Resources and Reynas Minas in a deal worth $20 million.

Nyrstar will receive the funds in instalments over the next 12 months in an agreement that also includes a purchase agreement linked to production.

According to Nyrstar’s website, production at the mine, which is located 160km southwest of Mexico City, ‘has been suspended since Q1 2015 due to ongoing issues associated with security in the region’.

The polymetallic mine produces zinc, copper, gold and silver concentrates.

The sale is part of Nyrstar’s move away from mining that began in 2016 when it sold a multimetallic mine in Peru.

A statement at the time said: “The transactions are part of the sale process for all or the majority of Nyrstar's mining assets which was formally launched in January 2016 and includes the completed sale of the El Toqui mine in Chile and the announced sales of the El Mochito mine in Honduras and the Contonga mine in Peru.

“Nyrstar is continuing to progress the divestment of mining assets and will issue further updates in due course.”