Ever since the Company began mining operations in 1943 in the heights of the Ticlio pass, constant hard work and dedication by its leadership and employees have made it one of the largest producers of zinc, silver and lead in Peru, and one of the top 10 largest producers of these metals in the world.
Initially, Volcan's operations were limited to the Ticlio Mine, a group of 30 concessions granted by the Peruvian government. The ore obtained there was sold to the Mahr Túnel concentrate plant, owned at the time by Cerro de Pasco Corporation, which was expropriated by the military government in the early 1970s.
In the 1990s, in a context of economic reforms implemented by the government at the time and aimed at stimulating private investment in public companies, Volcan began expanding its operations through the acquisition of mining areas and their respective assets. The vision of the Board of Directors and the leadership of Dr. Roberto Letts were fundamental to the Company's growth.
In an international public auction in 1997 Volcan Compañía Minera S.A. acquired the Mahr Túnel, San Cristóbal and Andaychagua mining operations and the Mahr Túnel and Andaychagua plants through its purchase of Empresa Minera Mahr Túnel S.A., which at the time belonged to Centromin Perú. The acquisition was valued at USD 128 million plus an investment commitment of USD 60 million that was fulfilled in the third year. One year later, Empresa Minera Mahr Túnel S.A. merged with Volcan Compañía Minera S.A., creating Volcan Compañía Minera S.A.A.
Subsequently, in 1999 Volcan acquired Empresa Minera Paragsha S.A.C. from Centromin Perú in an international public auction, for USD 62 million plus an investment commitment of USD 70 million. In addition, Volcan agreed to take on USD 20 million of Centromin's financial debt. This acquisition included the Cerro de Pasco mine unit and eight small hydroelectric plants–Baños I, II, III and IV and Chicrín I, II, III and IV–generating a total of 7.5 MW. As a result of this acquisition, Volcan became the largest zinc producer in Peru.
In 2000, Volcan acquired Empresa Administradora Chungar S.A.C. and Empresa Explotadora de Vinchos Ltda. S.A.C., owners of the Animón and Vinchos mines, respectively, for USD 20 million in cash and USD 16 million in Volcan Class B shares. This acquisition included the Francoise and San José II hydroelectric plants, with total generation of 2.2 MW.
Operations began at the Vinchos silver mine in 2004. In 2006, Volcan acquired Minera Santa Clara and Llacsacocha S.A., owner of the Zoraida Mine. One year later, Volcan bought Compañía Minera El Pilar, owner of El Pilar mine, adjacent to Cerro de Pasco Mine and pit.
In 2009, Empresa Administradora Chungar S.A.C. expanded the capacity of the Baños IV hydroelectric plant, giving Volcan a total of 13 MW of installed capacity.
Then, in 2010 Volcan acquired Compañía Minera San Sebastián, whose mining concessions are also located near Cerro de Pasco.
In January 2011, the shareholders of Volcan Compañía Minera S.A.A. approved a simple reorganization of the Cerro de Pasco mining unit. As a result, that unit was renamed Empresa Administradora Cerro S.A.C., and it became a subsidiary of Volcan Compañía Minera S.A.A. The purpose of the reorganization was to allow each mine unit to independently manage improvements in their operating results through cost reduction and growth.
Subsequently, in January 2012, as part of an international bond issue under Rule 144A and Regulation S of the United States Securities Act of 1933, Volcan placed 10-year corporate bonds totaling USD 600 million at a fixed rate of 5.375%. This bond issue provided financing for future growth projects such as the oxide plant at Cerro de Pasco and the new Alpamarca-Río Pallanga operating unit.
In February 2012, Volcan bought Empresa Hidroeléctrica Huanchor S.A.C., with 19.6 MW, from Sociedad Minera Corona S.A. for USD 47 million. Also that year, Empresa Administradora Chungar S.A.C. started up operation of the Baños V hydroelectric plant in the Río Chancay-Huaral valley. The 9.2-MW plant required a total investment of USD 24 million.
In 2013, the Islay Mine was consolidated into the Chungar operating unit through the acquisition of two nearby mining concessions for USD 17 million. Also in that unit, at the start of that year the Animón concentrate plant was expanded from 4,200 tpd to 5,200 tpd. In addition, during 2013, the Company completed expansion of the Victoria and Andaychagua plants in the Yauli Unit, increasing its total treatment capacity by 9% to 10,500 tpd.
In 2014, Volcan continued expanding the treatment capacity of Yauli UEA plants to reach 10,800 tpd. Also, operations began in the Jacop Timmers shaft (Chungar UEA), with a nominal capacity of 4,000 tpd.
In July 2014, Volcan acquired the 1.25-MW Tingo hydroelectric plant and 82km of 22.9 kV and 50 kV transmission lines, for a total of USD 13.5 million. The Company plans to expand this plant to a minimum of 10 MW and connect it to the Alpamarca UEA.
In 2014, the company started operations at the new Alpamarca unit and the Cerro de Pasco oxide plant, which reached full capacity in June 2015. Investment totaled USD 280 million. Between them, they produced 3.3 million ounces of silver in 2014 and 6.3 million ounces in 2015.
The following corporate reorganizations were approved: the merger by which Chungar absorbed the patrimonies of El Pilar, Huascarán, Santa Clara, Shalca and Troy, which came into force on September 1, 2017; the spin-off of an equity block belonging to Empresa Administradora Cerro S.A.C related to the oxides plant, which came into force on October 1, 2015; and the merger by absorption by Compañía Minera Alpamarca S.A.C. of Empresa Administradora Chungar S.A.C., which came into force on January 1, 2016.
It is important to mention that in August 2016 the 20 MW hydroelectric plant of Rucuy (120 GWh-yearly) began commercial operations. This project's total investment reached USD 50 MM. With this last addition, the Company currently owns 13 hydroelectric plants in operation, with a total generating capacity of 63 MW
73 years from its foundation, Volcan owns more than 334 thousand hectares of mining concessions, 12 mines, 7 concentration plants and a leaching plant. Volcan continues being a diversified company and a global leader in zinc, silver and lead.