Annual Report

Annual Report

20 18
Index About
the report
We have adopted the The financial indicators follow the Materiality

guidelines of the International International Financial Reporting GRI 102-44, 102-46
Integrated Reporting Council Standards (IFRS) while social and

(IIRC) and the GRI Standards of environmental data have been The content of this document
the Global Reporting Initiative calculated according to Brazilian follows the Materiality Principle
(GRI) to present the annual standards applied to labor and established by the IIRC and GRI and
performance of Nexa Resources environmental issues. We use the was defined based on the evaluation
S.A. from January 1 to December GHG Protocol methodology for the of topics of major relevance to the
31, 2018. The previous edition, greenhouse gases aspect. The survey mining and smelting sector, the
Summary of for the year 2017, was published of the standard contents, as well as Sustainability Accounting Standards
3 About the report 106 in April 2018. The content complementary information, was the Board (SASB) guidelines and
Sustainable GRI Annex
includes economic, social and responsibility of the Sustainability sectorial benchmarking. The most
6 Message from the Board of Directors 117 environmental aspects, as well area. The document was assured important issues were prioritized in
Development Summary of Sustainable Development Goals
as the risks and opportunities by PricewaterhouseCoopers (PWC). consultation with Nexa’s leadership.
mapped and considered of
Goals 8 Message from the CEO 120 Summary of GRI Standards GRI 102-56
interest by shareholders The material aspects of

10 Nexa Resources 132 External Assurance Letter and other stakeholders. The consolidated financial sustainability and its long-term
Operations and projects GRI 102-1, 102-50, 102-51, 102-52 SDG 12.6 statements and the accounting goals are presented throughout
2018 Highlights 134 Disclaimer audit report are available for viewing the report and cover the subjects:
on our Investor Relations website People, Safety and Health, Waste,
16 Strategy 135 Corporate Information (https://ir.nexaresources.com) on the Water, Emissions and Energy, Local
Intelligent and reliable results page. You can download this Development, Decommissioning
Business model document, also in Portuguese and and Human Rights. The Economic
Strategic mandate Spanish, on our institutional website Performance, Ethics and Integrity
(www.nexaresources.com). topics are considered as
46 Corporate Governance transversal topics. GRI 102-47
Ethical conduct
Risk management
Stakeholder engagement
58 Performance
Economic-financial
People
Safety and health
Environment
Local development
Descomissioning
Human rights
2 Annual Report Nexa 2018 Annual Report Nexa 2018 3

Material topics
Material topic GRI 102-47 Explanation of the material topic GRI 103-1 Material topic GRI 102-47 Explanation of the material topic GRI 103-1
Where the Involvement Where the Involvement

Why it is material for Nexa impacts occur with impacts Why it is material for Nexa impacts occur with impacts
Water The mining activity involves technical procedures in All operations Nexa and Safety and health We continuously invest in strengthening a culture All operations Nexa, suppliers
which water assumes an important role, both for communities focused on safety and health for both our own and communities
extraction and processing. It is an indispensable as well as outsourced employees, in improving
input, especially in a context in which water training, especially for risky activities, and in
resources are scarce and their management has an enhancing working conditions to assure safe and
impact on local communities. Thus, it is even more healthy conditions for our employees.
important to strive to reduce water use and
increase reuse throughout the value chain. Local development Our projects emphasize relationship actions with All operations Nexa and
the communities and training of local workforce communities
Waste Our activities generate a significant amount All operations Nexa, suppliers when we set up the units and in their future
of waste. There are regulatory requirements, and communities operations, always taking into account the
such as the National Solid Waste Policy (PNRS, co-creation of a legacy in the localities in which
in Portuguese) in Brazil, which determine the we are present
company’s responsibilities in this area. Thus,
we seek to reduce the generation of mining Human rights We believe that maintaining human rights is All operations Nexa, suppliers
and metallurgical waste, complying with local an essential condition for building long-term and communities
legislation, and acting committed to our strategy, partnerships. Therefore, our contracts involve a
co-creating a positive legacy for society. number of requirements, such as the adoption
of clauses, compliance with legal obligations
Energy and emissions We consume large amounts of energy due to All operations Nexa, suppliers and supplier assessment. All these measures
the nature of our activities and logistics and and communities are important for our suppliers to develop and
transportation processes. That is why we seek new implement appropriate business processes.
technologies and progress in sustainable energy
generation. The search for green technologies is Decommissioning Our activities impact the environment and the Mining and Nexa,
also due to the fact that mining activities comprise communities in the vicinity of our units. As a way smelters environmental
a considerable percentage of foreign trade; hence, of minimizing them, we designate all the activities agencies, local
they are subject to the norms and regulations of necessary to go beyond compliance with the governments and
the developed countries. As a result, we contribute legal closing requirements, through documents communities
to the advancement of the National Policy on that describe guidelines for the deactivation
Climate Change policy. of an industrial mining unit. These take into
account alternative future uses, with the goal of
People Our personnel management model and our policies All operations Nexa and co-creating the best legacy to the neighboring
and tools have guided the development of people communities communities, free of environmental liabilities.
based on Intelligence, Enthusiasm and Courage.
In recent years, the Diversity Committee has
coordinated the implementation of a number of
actions aimed at promoting diversity, uniformly
and constantly, in all our units.

Message from the
Board of Directors
GRI 102-10, 102-14
“
We have sought to move closer to our
investors, who have made important We approved our Compliance Program We have sought to move closer to our unaccounted inventories, a situation
over the course of the year, revised investors, who have made important aggravated by China’s announcement
contributions to our planning. At the and optimized to adhere to the laws of contributions to our planning. At the of production reduction, we expect
same time, we have set out to inform all the countries in which we operate.
As part of the program, we have
same time, we have set out to inform
the market more clearly about our zinc
the price of the metal to reach better
levels, favoring our revenues in the
the market more clearly about our zinc published four new policies - Anti- and copper business, which has coming years.
Corruption, Anti-Money Laundering characteristics that are distinct from
and copper business and Anti-Terrorism, Antitrust and most of the players in the mining In the meantime, we are strengthening
Compliance - and nine internal arena. We have organized numerous our structures and our governance,
procedures detailing how to manage contacts and meetings with analysts, building an increasingly intelligent and
these issues. The documents address investors and banks to make our goals, reliable company that can smoothly
aspects such as human rights, political strategies and way of operating overcome external adversities, based
contributions, conflicts of interest and transparent. This is a challenge that on our constant commitment to
employee rights and duties, reinforcing extends into 2019. operational excellence, transparency
In 2018, we completed one year as a publicly traded company on our commitment to the United in all levels of governance, aiming at
two of the world’s most important stock exchanges - New York Nations Global Compact. From the internal point of view, we creating value for all our stakeholders.
and Toronto -, which instilled in us a global market vision and also had some operational challenges in
served as a great learning experience for improving our governance. Our Code of Conduct, based on the Peru that are already being addressed, Luis Ermirio de Moraes
values of Votorantim S.A., our largest as well as strong investment in Chairman of the Board of Directors
We consolidated the activities of the Board of Directors, with the participation of shareholder, has been reviewed and research into new projects, extending
four independent members, fully active advisory committees and the review of made public both internally and the life of our mines; furthermore, we
fundamental policies for the good functioning of the organization. The diversity externally. It guides the behavior we have taken actions to introduce new
we seek in our company is mirrored in the formation of our Board, composed of desire from our employees, third processes and technologies that make
seven men and two women representing five nationalities – Brazilian, Canadian, parties and suppliers, so that the our mining and smelting operations
American, Croatian and Chilean. challenges are faced ethically and increasingly more productive.
with a social and citizenship-based
As we complete the process initiated with the 2018 Strategic Dialogue, held conscience. Votorantim completed In the external scenario, we had to
every three years, we have strengthened our corporate attributes and ensured its 100th anniversary in 2018, an coexist with the volatility of metal
the guidelines for our journey into the future. Our aspirations for the coming uncommon milestone in Brazilian prices on the London Metal Exchange
years are marked by the desire to be globally perceived as an intelligent and corporate history. The transformation (LME), which also influenced our net
trustworthy company, one that consistently delivers attractive results. Being and renewal capacity, long-term revenue of US$ 2.5 billion. Although
intelligent means finding simple solutions to our challenges through vision and commitment to the future there were no sufficient grounds to
transformational technologies and processes, moving towards becoming an mark the performance of all of justify such behavior, zinc ended the
increasingly better company. And being trustworthy is the commitment to plan companies in which Votorantim has year at an average price of US$ 2,922
what we do and deliver what we promise, as well as co-creating a legacy invested, such as Nexa, in which it a tonne, compared to US$ 3,421 in
alongside society. owns 64.3% of the capital and the first quarter. In a scenario of rising
inspired this centennial celebration. demand and without evidence of

Message
from the CEO
GRI 102-10, 102-14
“ All the innovative and state-of-the-art technology is being applied in our

operations — especially our new mineral exploitation project in Aripuanã in the
state of Mato Grosso. The unit received its installation license in December, and is
We are determined to achieve our aspirational being built right from the start using all of the standards of excellence we have
been striving to implement. Aripuanã marks the beginning of a new phase in the
goal: to be globally recognized as an intelligent company, wherein we are beginning to deliver what we promised in our IPO. It also
represents a great challenge for the upcoming two years.
and reliable company, growing in zinc and
copper mining, taking the world of mining to Our Capex totaled US$ 300 million in the year, mainly earmarked for Growth
and Operational Excellence purposes. In addition to the resources directed to
the world of people and consistently delivering Aripuanã, we also made progress on the Magistral, Hylarion and Pukaqaqa
greenfield projects.
attractive results.
From the commercial point of view, it was a period of good results. This was
due to the offsetting of the decline in demand in South America with growth in
other places, such as the U.S. and Asian markets. Another positive factor was
the opening of an office in Shanghai, China, which lets us capture opportunities
and better understand the characteristics of this important market.
In 2018, our operations made We also moved forward with the We believe that talent development is also a critical factor for the success of
significant progress, featuring integration process between the our business. Therefore, we invest in programs and initiatives that increasingly
the implementation of new units in Brazil and Peru. Today, we allow swapping experiences and cultural integration between our teams.
projects and internal processes are a unique company, with stronger We have global programs in place for the development of young talents, the
that strengthen our capacity to and better adapted technical and formation of managers and exchange opportunities between the countries
create value over the long-term. administrative teams. The full in which we operate. The result of our employee climate survey confirmed
Special mention should be given integration of our operations was that we are on the right track: 93% of staff participated and the favorable
to the improvements we made fundamental to the optimization of rating we earned places us among the first quartile in the industry in terms
in safety, a key topic that is our processes, systems, structures of organizational climate.
one of our organization’s values. and costs in a manner that was both
Our indicators were much competitive and attractive for One way to value the initiative of our employees is through the Recognition
better than in previous years, the market. Program, which rewards actions in the social, operational and environmental
the result of a robust plan of spheres. This year, we saw higher participation and levels of commitment than
action that involved everyone We place great emphasis on in 2017. One example of team engagement is the growth of the volunteer
in management. innovation, with transformative program, for which we have ambitious goals designed to boost our contribution
technologies and processes. Toward in the coming years.
Over the course of the year, our Board this end, we successfully concluded
of Directors defined Nexa’s strategic the second edition of the open We are determined to achieve our aspirational goal: to be globally recognized
mandate for the next three years. As innovation Mining Lab that included as an intelligent and reliable company, growing in zinc and copper mining,
an intelligent, reliable company that 186 registered projects and nine taking the world of mining to the world of people and consistently delivering
delivers what it promises, we aspire to winning startups, as well as the attractive results.
be more innovative and connected to participation not only of Brazilian
the world and the trends, identifying companies but also Canadian, Tito Martins
simple solutions to our challenges. Peruvian and American firms. Chief Executive Officer
This was our main guideline in 2018.

We are a mining and smelting company with an emphasis on zinc Integration
and copper, with over 60 years of experience in asset development
and integrated production in Brazil and Peru. Our shares have been The integration between
traded since October 2017 on the New York (USA) and Toronto mines and smelters represents
(Canada) stock exchanges. Our main shareholder is Votorantim S.A., a distinguishing characteristic
which owns 64.3% of our capital. GRI 102-1, 102-5 in our operations. In Brazil, the
zinc concentrates produced in
We operate five polymetallic mines, three of which are located in the the Vazante and Morro Agudo
central Andes of Peru (Cerro Lindo, El Porvenir and Atacocha) and two in the mines are transformed into
state of Minas Gerais, Brazil (Vazante and Morro Agudo). Our operations consist metallic products at the Três
of large-scale underground and modern and mechanized open-pit mines, Marias unit. The Juiz de Fora
which produced 556 thousand tonnes of equivalent zinc1 in 2018. Cerro Lindo plant, in addition to concentrates,
and Vazante are among the world’s 15 largest zinc mines and, combined with also uses recyclable materials
our other mining operations, placed us among the world’s top five zinc (such as steel scrap metal and
producers, according to Wood Mackenzie. GRI 102-2, 102-4, 102-7 powder) for the production of
zinc. In Peru, most of the zinc
We also have three zinc smelters: one in Peru (Cajamarquilla) and two concentrates produced at the
in Brazil (Três Marias and Juiz de Fora), which produce metallic zinc, zinc Cerro Lindo, El Porvenir and
oxide and by-products. Cajamarquilla is the only zinc smelter operation Atacocha mines are processed
in Peru and the seventh largest in the world by volume produced, according by the Cajamarquilla unit.
to Wood Mackenzie’s survey (2018 data). In the year, our our smelters produced
638 thousand tonnes, of which 607 thousand tonnes were metallic zinc and Our level of integration is
31 thousand tonnes were zinc oxide. GRI 102-4, 102-7 around 60% and we always
strive to reduce the supply
Our main headquarters are in Luxembourg, with administrative offices in of zinc concentrate received
the cities of São Paulo (Brazil) and Lima (Peru). Our commercial offices are from third parties. For example,
located in Brazil, Peru, the United States, Austria and China. GRI 102-3, 102-4 the start-up of Aripuanã in
2021 will contribute to greater
Nexa
In December 2018, we received the license to install the Aripuanã Mining integration because the expected
Project in the state of Mato Grosso, and we plan to build the project starting in average annual production of
the first quarter of 2019, with operations beginning in 2021. Annual production concentrate from this project is
capacity is estimated at 2.3 million tonnes of ore, according to the Technical equivalent to 28% of the volume
Report published on our Investor Relations website and also filed with regulators in purchased from suppliers.
Resources
the United States and Canada. In May, we sold the assets of the Fortaleza de Minas
unit, where we produced sulfuric acid, a product that lost relevance in our business
portfolio. We also shut down a commercial office in Canada, a market that is now
being serviced by the Houston unit (USA). GRI 102-10
Net revenue totaled US$ 2.5 billion in 2018, an increase of 1.7% over
the previous year (US$ 2.4 billion) and adjusted EBITDA was US$ 605 million
(US$ 668 million in last year). At the end of the year, we had 5,591 own
employees2 and 11,345 outsourced employees. GRI 102-7
1
Consolidated mineral production in thousand tonnes of zinc equivalent, calculated by converting volumes of copper, lead, silver and gold to an equivalent volume
of zinc at the benchmark average prices for 2018. The prices used for conversion are: zinc: US$ 2,922/t; copper: US$ 6,523/t; lead: US$ 2,242/ton; silver:
US$ 16/ounce; gold: US$ 1,268/ounce.
2
This value disregards trainees and young apprentices.

Operations
and Projects GRI 102-4, 102-7
2018 Production
Peru Brazil
10,616 thousand 2,435 thousand

tonnes of ore processed tonnes of ore processed
330 thousand 277 thousand

tonnes of zinc metal tonnes of zinc metal
Smelters
Cajamarquilla Três Marias Juiz de Fora

330 thousand 187 thousand 91 thousand
tonnes of zinc metal tonnes of zinc metal tonnes of zinc metal
Mining
Cerro Lindo Pasco (El Porvenir Vazante Morro Agudo

e Atacocha)
130 thousand 141 thousand 26 thousand
tonnes of zinc tonnes of zinc tonnes of zinc
75 thousand
contained in contained in contained in
tonnes of zinc contained
concentrates concentrates concentrates
in concentrates
45 thousand Mining and processing Smelters Mineral exploration Offices

tonnes of contained lead
7 thousand
tonnes of contained lead Vazante (Brazil) Três Marias (Brazil) Brazil uxembourg - headquarters, commercial
L
39 thousand
tonnes of contained copper Morro Agudo (Brazil) Juiz de Fora (Brazil) Peru and administrative
Cerro Lindo (Peru) Cajamarquilla (Peru) Namibia Belo Horizonte (Brazil) - administrative
Greenfield projects in development El Porvenir (Peru) São Paulo (Brazil) - central administrative
Magistral, Pukaqaqa, Shalipayco Aripuanã, Bonsucesso, Caçapava do Sul Atacocha (Peru) Lima (Peru) - commercial and administrative
Houston (United States) - commercial
Projects in resource definition process Salzburg (Austria) - commercial
Florida Canyon, Tajo San Gerardo Calamina Shanghai (China) - commercial

Intellectual Capital
2018
Manufactured capital
US$ 9.2 million
invested in Research and Development
Highlights
US$ 300 Human Capital US$ 2.4 million
for 9 startups selected in MiningLab2
million
of investments in
5,591 Pilot project
own employees
Financial capital
assets (Capex)
Over Ore sorter
for metal recovery in Vazante
210 thousand
GRI 102-7
US$ 2.5 billion

net revenue
556 hours of training
thousand
More than Natural Capital
tonnes of zinc equivalent US$ 2 million 66%
US$ 605 million
adjusted EBITDA
produced invested in training of water recirculation over total
consumption in units
Social and
US$ 1.2 billion 4%

increase in the production
relationship capital
24%
of the Juiz de Fora smelter’s production
added value
of the smelters
US$ 10.4 million
invested in social actions, with 193 projects
coming from secondary (recycled) materials
6.1 years
of average maturity of the debt, after renegotiation
License for the Aripuanã
in 17 localities
Project (Brazil), with production More than

in the year.
capacity estimated at
10 thousand
2.3 million
t/year of ROM
people benefited by the We Are All Together
(Somos Todos)
(Rum of Mine) More than
29 thousand
people benefited by social investments

Intelligent and reliable
GRI 103-1, 103-2, 103-3
We want to be globally perceived as an intelligent Being intelligent means innovating through

and reliable company that creates value for all transforming technologies and processes, keeping us
stakeholders. This is part of our strategic objective, connected to the world and its trends, carefully allocating
revised in 2018 by the Board of Directors and the human and financial resources and managing the risks
Board, which will guide us for the next few years inherent in our business. Acting jointly to find simple
(more information on how the review process for our solutions to our challenges, we are moving towards
strategy was conducted is on page 20). becoming an increasingly improved company.
Our core business is the extraction of ore and And being reliable means that we are committed to
metal processing and production. By acting intelligently operating safely and sustainably, contributing in a material
and reliably, we develop quality products that will be way to the development of the localities in which we operate.
transformed into solutions to benefit millions of people. Furthermore, to be reliable is to be perceived as a company
We have followed a very well devised path to bring the that plans what it does and fulfills what it plans.
world of mining to the world of people, based on our
strategy that defines who we are and guides us to
continue growing in a competitive manner.
TO BE INTELLIGENT
To manage risks
To innovate through To be connected to appropriately, to
technology, automation, key trends, monitoring To allocate financial mitigate and/or reduce
processes and ways of them in a structured and non financial their likelihood of
thinking and getting manner and providing resources efficiently occurring and their
Strategy
things done Nexa with relevant and intelligently impacts on the
solutions business
TO BE RELIABLE
To co-create
To operate a relevant legacy
safely and to the localities
sustainably where we
operate
To plan what
to do and to fulfill
what to plan

Business model
Our business model has been established to take into account the capture, creation and distribution of value from the six
capitals proposed by the International Integrated Reporting Council (IIRC): financial, manufactured, human, intellectual, natural
and social and relationship. In the sector in which we operate, mining, the main elements of value capture involve the natural,
financial and human capitals. Our mining, processing, smelting and marketing activities allow us to add and distribute value to
the stakeholders.
Value Capturing Value Creation Value Created Shared Value

Financial Capital – We use our own financial resources, derived
from operating cash generation, and also from third parties, to
make the necessary investments to develop new projects and
maintain operational excellence and competitiveness in the mines
US$ 2.5 billion Employees – We create direct and indirect jobs,
and smelters. Strategic projects sometimes are financed with net revenue develop, train and appreciate our employees, ensuring
funds raised in the capital markets. The production and sale of Strategic Strategic care for their safety and their intellectual and
Guideline: Guideline:
126
ore concentrate, by-products, metals and metallurgical alloys professional growth.
generate our revenues and, together with our ability to US$ million
appropriately operate our assets, generate added value that is Growth Operational Excellence invested in mineral Investors – The efficient management of assets and
distributed among shareholders, employees, suppliers, resources, as well as a short-, medium- and long-term
exploration and project
governments and society. strategic vision, allows for creation of value, distribution
development of dividends and the increase in the company’s value.
Natural Capital – At the beginning of the chain, our activity
depends on the prospecting of mineral resources. To do so, we
rationally extract natural resources and seek innovative US$ 108 million
Clients – We manufacture quality products, maintain
partnerships with local and global customers in search
alternatives to reduce waste generation, atmospheric emissions in taxes paid of new solutions and applications to maintain the
and impacts on biodiversity, as well as recover areas impacted by perpetuity of the zinc and copper value chain.
our activities. Mineral Mining Smelting Sales
Human Capital – Our Values and Beliefs, our development and

exploration
The discovery and
We carry out mining
activities, mainly zinc
We operate three
smelters: two in
We sell
concentrates,
US$ 1.3 billion Governments – We pay taxes to federal, state and
municipal governments, with the objective of improving
zinc metal and
paid to suppliers the quality of the services offered to the communities in
compensation policies and our organizational environment are development of and copper, with an Brazil and one in
key factors in attracting and retaining highly qualified people. We economically viable important Peru, each with co-products, and our activity areas.
seek to maintain a safe and healthy working environment and
invest so that people develop personally and professionally.
mineral resources,
as well as the
percentage of the
ore concentrates
specific
positioning
invest in the
development of US$ 10 million Communities – We act to co-create a legacy in the
extended life of being sent to our parameters. In products and invested in communities localities where we operate. We seek an understanding
Manufactured Capital - Our mines, smelters, administrative our mines, are own smelters for addition to applications with of these localities through structured actions and
important metal production. metallic zinc, zinc higher potential continuous relationships, contributing to their
95
buildings, exploration areas and logistic structures enable the
generation of value through more efficient processes and competitive The five mine oxide and alloys, for growth in the US$ million development.
equipment. Mining and smelting activities require the use of advantages that operations are the units are coming years, for the environment
engineering and technological resources, managed to guarantee add value to the distinctive for taking configured to identifying new Suppliers – We hire many different materials, inputs
the operational stability of the units, maximizing productivity and business. responsibility for the make co- trends and and services companies and seek to train local suppliers,
ensuring and boosting competitiveness. management of
socio-environmental
products, such as
silver concentrate,
market needs
128 aiding in the creation of indirect jobs in the communities
in which we are present.
Social and Relationship Capital - Dialogue with the impacts and sulfuric acid and new jobs created
communities in which we operate is essential for the relationships with copper sulfate. Financial Institutions – Our market capacity and
1,722
maintenance of the operations and the sustainability of the communities. credibility lets us contract financing for investments and
the business and is part of the process for co-creating initiatives in projects that bring development and value
a legacy in the localities where we have a presence. contracted suppliers creation to the company and its stakeholders
Intellectual Capital - We stimulate innovation and the

development of technologies that create competitive
differentials, carried out in partnership with universities,
research centers and public institutions.

Strategic
mandate
Every three years, we implement Based on this analysis, which was coordinated by In August 2018, we ran a Strategy Workshop to present
an established strategy review process the Strategic Planning area and supported by the various a review of the new Mandate and the challenges it proposed
called Strategic Dialogue. This is a departments and key people in the organization, we prepared to the organization’s entire leadership. Among the challenges
fundamental step in the discussion a review of our Strategic Mandate, which was approved in addressed were those associated with the trends of the
cycle about where the company is June 2018 by the Board of Directors. It is a document that so-called “New Age of Mining”: a demand from society and
headed and is an important part of the formalizes our aspiration to be an intelligent and reliable a focus by companies on mining and smelting operations that
process to ensure we will move in the company that generates value for its stakeholders. are safer, more efficient, more sustainable and more intelligent.
direction expected by the shareholders
and other stakeholders. Our last review Axes and enablers The review of the strategy pointed precisely to the need
was initiated in December 2017, based to be prepared to respond quickly and efficiently to possible
on individual and structured interviews We maintained our intention to ensure growth with changes in the scenario, whether in relation to political,
with all of the company’s executive competitiveness, based on two strategic axes: Operational economic, environmental, safety or social issues. Some of the
directors and Board of Directors Growth and Excellence. points raised during the dialogue are: new mining regulations;
members to identify both positive organized civil society movements; social licenses for
aspects as well as improvements and A third axis, Market Development, which had been operations, which demand direct and transparent negotiations
adjustments that should be made. established previously to accelerate our commercial with communities; the political environment; royalties and
competence, has now become one of the enablers taxes; and workforce availability and mining activity profiles.
At the same time, we analyzed underpinning the growth strategy. This came about because
the industry scenario, macro trends, we made significant progress in the face of the previously
new technologies, and the political, proposed objectives for this axis, such as regional leadership
economic and social environments in the marketing of metals and global positioning, in addition
of the countries in which we operate. to the development of a global footprint and the pursuit of
Likewise, we verified our competencies change that reflected the company’s new momentum.
and capacity to execute the strategy,
as well as how these aspects have The other enablers are People and Organization,
evolved since the previous evaluation. Sustainability, Project Management, Risk Management,
Technology and Automation, Supplies and Logistics and
Capital Structure.

Strategic
guidelines
OPERATIONAL
GROWTH
EXCELLENCE
To assure sustainable growth in Continuous improvement of competitiveness

zinc and copper in the Americas, (maximizing the value of existing operations) through
ensuring value creation with operational stability, higher capacity utilization, continuous Enablers
optimal capital allocation through cost improvements, productivity and rationalization
five avenues of growth: of the employed capital:
People and organization Risk management
■■ Cultivate talents and promote inspiring leadership ■■ Identifyand manage the main risks (both operational
■■ Ensure key critical resources within the organization and strategic), reducing and mitigating impacts mainly
and their ongoing evaluation and improvement through preventive systems
■■ Contribute to raising productivity and business ■■ Monitor volatility and discuss actions appropriately
competitiveness
■■ Promote effective governance and organization Technology, automation and innovation
■■ Extension of the useful ■■ Operational Stability: Initiatives focused on increasing ■■ Promote a positive and constructive relationship ■■ Improve operational efficiency and stability through
mine life productivity through volume increases and cost reductions, with important stakeholders technology and automation solutions
counting on the support of the enablers (technology, ■■ Seek technologies for greater eco-efficiency
■■ Brownfield projects automation & innovation, logistics, people, etc.) Sustainability ■■ Allow the use of low-grade and more flexible
■■ Continuously improve the safety and health culture ores/alternative use of raw materials (promote
■■ Greenfield projects ■■ Installed
capacity utilization: maintenance of management ■■ Reduce environmental impacts (emissions, waste, water circular economy)
practices, automation, reduction of emergency shutdowns and energy consumption, etc.) of operations ■■ Develop an innovation platform focused on
■■ New area exploration and preventive maintenance improvements. ■■ Create shared value with society, contributing to the technology and automation and for innovative
co-creation of a legacy that is relevant to the localities processes. Stimulate an increasingly more intelligent
■■ New business development Cost management improvements: in which we operate way of thinking and operating.
Reduction of specific consumption and variable costs Project management Logistics and supplies
through operational stability ■■ Ensure development and execution by supporting ■■ Generate competitive advantages for operations,
areas to ensure project returns and minimize the processes and projects
Reduction of unit fixed costs through better management diversion risk ■■ Be a facilitator for a better and more sustainable
of contracts and increase of produced volume ■■ Monitor and enhance the long-term investment plan client-supplier solution
■■ Be a specialist in the best evaluation between
■■ Productivity
and capital rationalization: focus on Commercial outsourcing and insourcing
boosting productivity in both the operations as well ■■ Continually positioning Nexa as a strategic partner in ■■ Innovate in processes, tools and information (from
as the corporate processes, capital discipline and domestic markets and enhancing its global business and to Nexa)
leadership to reduce/mitigate operational risks strategy (developing new markets and products aligned
with global trends)
■■ Manage the concentrate sales portfolio, exploring the
benefits of smelter-mine integration, continuously

improving sales intelligence

Growth Axis Shalipayco - The project is
located in the Junín region in the
We have a clear growth strategy, focused on zinc and central Andes of Peru, an area with
copper mineral exploitation in the Americas, to ensure the underground zinc, lead and silver
creation of long-term value. We direct our investments both mines. During the year, a conceptual
to boost annual production capacity and to extend the life study was completed and the project
of the mines we currently operate and develop new projects. in 2019 is entering the pre-feasibility
We also look at new zinc and copper business opportunities study phase (FEL2). As a result of the
to facilitate the execution of our projects, either organically study and to maximize the project›s
or inorganically. internal rate of return and net present
value, the plan included additional
The budget for mineral exploitation basically remained drilling to reclassify its mineral
stable in 2018, investing US$ 83 million in these projects. resources and prepare the engineering
In addition, during the year we evolved in terms of project concept for a processing plant. As a
management and governance structures, continuing the result, another 10 months were added
previous year’s review of committees, procedures and to the main project timeline.
management models.
Pukaqaqa - It is located in the
Greenfield Projects Huancavelica region, about 400
kilometers south of Lima (Peru),
Our projects are developed in an intelligent manner; and includes the development of an
that is, lower costs, more agility, minimum deviations open pit copper, molybdenum, silver
from the plan and maximized returns. The following and gold mine. The pre-feasibility
projects are in different stages of FEL (Front-End study (FEL2) progressed 22% in 2018
Loading) feasibility evaluation: Magistral, Shalipayco and we are maintaining the goal of
and Pukaqaqa (Peru), and, in addition to Aripuanã, which identifying possible operational
is in the construction phase, Bonsucesso and Caçapava synergies between this project and
do Sul (Brazil). All projects under development have gone similar assets in the region.
forward according to plan, strengthening our portfolio.
Caçapava do Sul - A polymetallic
Greenfield projects under development project involving copper, lead and zinc
located in the state of Rio Grande do
Aripuanã - It is our most advanced project. Project Sul, about 245 kilometers from the
initiation was approved in October by the Board of Port of Rio Grande. The resources can
Directors and in December it received an installation be exploited through both open pit
license from the environmental agency of the state mining and underground processes
of Mato Grosso, Brazil (details on page 26). concomitantly. The research program
in 2018 was slower due to the
Magistral - Located in the Ancash region of Peru, this redirection of budget funds to
open-pit copper project has a mineral processing unit. priority projects. In 2019, some
In 2018, the soundings for metallurgical samples, bench 13 thousand meters will be sounded
tests and pre-feasibility studies (FEL2) were started, in a survey.
which are 55% complete. It is estimated that Magistral
will produce an annual average of 40 thousand tonnes
of copper contained in concentrate, 3 thousand tonnes
of molybdenum and 600 thousand ounces of silver
(17 tonnes) over the 16 years of its useful life.

Aripuanã construction begins
Aripuanã, a polymetallic mine located in the state of Mato Grosso, is considered one of the world’s
ten largest zinc projects. This integrated underground mine’s expected production is 2.3 million tonnes
of crude ore per year (especially zinc, lead and copper) - with output of 120 thousand tonnes of zinc
equivalent. The expected useful life is at least 13 years, considering just the known reserves, with the
possibility of extension for another six years.
The expected average annual production of the Aripuanã zinc concentrate is 28% of the volume we purchased externally
in 2017, which will contribute to higher integration between mines and smelters.
Aripuanã is fundamental to the evolution of our strategy of continuing to grow our zinc and copper mining and smelting
operations in the Americas. Besides contributing to the development of the mineral industry in Mato Grosso, it strengthens
our position as one of the world’s five largest zinc producers, and the leading producer of the ore in Latin America.
We seek to incorporate the most modern technology and operational excellence practices into the Aripuanã Project, as well
as a sustainability vision in all its processes. Some examples are the goal of 100% water reutilization, the construction of a
dry tailings deposit and the focus on co-creating a legacy for the community.
Aripuanã in numbers
The processing Planned job generation:

Expected equivalent zinc production
of 120 thousand tonnes/year, capacity of the plant is
1,600
6.3
including the average annual
production of 66.7 thousand tonnes
of zinc (18% of Nexa’s annual zinc employees
production in 2017), 23 thousand
tonnes of lead, 3.7 thousand tonnes tonnes (construction phase),
of copper, 1.87 million troy ounces of ore/day 750 own employees and
of silver and 13 thousand troy 240 outsourced
ounces of gold
(operational phase)
Total reserves
(probable and proved): Estimated capital Drilling of more than
Lifetime of the mine:
13 years 26.2 million investment for the project:

215 kilometers
proved and probable

tonnes, of which 3.7% zinc,
1.4% lead, 0.2% copper,
US$ 392 million in the project area and vicinity
for the identification of
mineralized deposits
0.3 g/t gold and (35% in 2019, 49% in 2020
reserves + 6 years 34 g/t silver and 16% in 2021)
of inferred reserves

TECHNOLOGY AND OPERATIONAL EXCELLENCE TIMETABLE SOCIAL LEGACY In addition to the five groups, the topics of Social
Participation and Monitoring of Socioeconomic Indicators also
■■ Dry tailings disposal - Focusing on the safety and ■■ 2017- presentation of the environmental impact study The Aripuanã Project’s Integrated Socio-economic took into account cross-cutting themes with all the others,
sustainability of neighboring communities, the undertaking and review of the global minimum cost study Plan (PIS) was prepared from a socio-economic diagnosis and likewise were discussed. The PIS proposes to operate
was projected from the start so as not use conventional that sought to enhance understanding of the territorial, within each topical group following Nexa’s four strategic social
tailings containment structures. A new process was ■■ April/18 - Obtaining the Preliminary Environmental License social, economic and socio-organizational context of the performance axes: Local Economic Development; Socio-
developed involving filtering, drying, handling and disposal of locality where the unit will be built. The plan is aligned environmental; Public Management and Social Participation;
dry tailings in piles protected by layers of geomembranes, ■■ Oct/18 - FEL3 completion with the topics contained in the Sustainable Development Childhood and Youth. These guidelines guided the definition of
reducing risks and environmental impacts. Goals (SDGs), as is the concept of sector unification, the social programs and projects being developed in Aripuanã.
■■ Dec/18- Obtaining the Installation License (IL) granted designed to help achieve shared goals and minimize
■■ Use of constructed wetlands - passive treatment by the Mato Grosso State Environmental Department impacts, promoting positive developmental actions Some projects were initiated in 2018, such as the program
of rainwater runoff on ore piles (ROM - Run of mine), in the region. to strengthen the network to protect child and teen rights, as
sterile waste piles, tailings piles, industrial and ■■ 1st
quarter/19 - forecast for signing the main well as the training of community agents to prevent violations
administrative areas and mine drainage systems. With packages such as comminution, flotation and mine In line with the company’s social strategy and the of the rights of young people and women. Other programs
this system, we will return the treated water to the equipment, as well as main services (such as EPCM, the challenges identified and prioritized in the PIS, the plan already under way reinforce the quality of public and technical
receiving bodies in a controlled manner while also company for civil construction and electromechanical defined five topic groups to facilitate the construction education in Aripuanã, supporting both the possibility of local
treating effluent water from the processing plant. assembly and mine development); and start project of more creative solutions to fit each reality: hiring and the improvement of education in the region. In
Hence, 100% of the treated water will be recirculated construction 2019, we will continue the projects that were started in
back to the process and there will be no disposal into previous years and expand our social activities pursuant to
the environment. ■■ 2021 - estimate for startup of operations the PIS.
1 Health and sanitation actions for the population
■■ Highdegree of automation - better safety levels, In addition, we have established that all our suppliers
operational stability, cost savings and increased LOGISTICS 2 Local manpower and housing for social projects must commit to conduct their activities
productivity. in accordance with our social responsibility requirements.
The three types of ore concentrate will be brought 3 Migrants, vulnerable publics and public management These include commitments to human rights, support for
PROPERTY out in part by truck to Rondonópolis, where they will local development, promotion of safety and a healthy
be transferred to railroad cars and sent to the Port of 4 Entrepreneurship and local suppliers workplace, compliance with the Social Golden Rules and
62.3% Nexa Recursos Minerais S.A. Santos, for subsequent shipment abroad. The supply the 15 Community Relationship Protocol rules.
of zinc smelters from Juiz de Fora and Três Marias will 5 Indigenous peoples
7.7% Nexa Resources Peru S.A.A. be by road transportation.
30% ineração Rio Aripuanã Ltda.

M
(a Karmin Exploration Inc. subsidiary)

8. Local Development
■■ VIA - Support for the Children and

Adolescents Law
■■ Project’s Integrated Socio-economic Plan (PIS)
■■ Job generation
Aripuanã Plant
4. Processing
Stages:
■■ Crushing and grinding:
Its purpose is to adjust the
granulometry of the material
1. Extraction by ■■ Flotation: Separation of different
5. Mineral extraction
underground mine types of concentrates and tailings (zinc, lead and copper) 1
■■ Thickening: All materials are
thickened and then filtered,
separately
1
7. Logistics and integrated sales
2. Dry tailings disposal
3. Use of constructed wetlands

for water treatment
6. High degree of automation

Brownfield Projects In order to enable the expected as lower operating costs in transporting Regional projects
surge in the unit’s production, which ore from lower levels, in addition to
We permanently strive to should reach maximum capacity in avoiding larger capital investments. We develop projects from the initial exploration phase In November 2018, we resumed the drill program
develop a pipeline of brownfield 2020, we increased the hours worked through to the definition of funding, designed to maintain at the Florida Canyon project, which consists of 16
projects aligned with the full potential in the unit by approximately 30%, Also in 2018, 11 kilometers of a live and optimized portfolio of organic and inorganic contiguous mining concessions covering approximately
of our assets, seeking to extend the including the addition of a fourth drilling were completed along the options, improving and expanding the project pipeline. 12,600 hectares in the Amazon region of Peru. Our plan
capacity and lifetimes of our mines work shift. integration area between El Porvenir Within these assumptions, we currently have ten zinc, for 2019 calls for conducting another 14,700 meters
and taking advantage of favorable and Atacocha, with a focus on three zinc and copper and six copper projects under study of soundings.
market conditions. Our goal is to Cerro Lindo identifying new ore bodies, and 16 – located in Peru, Brazil and Namibia.
ensure a minimum of 12 years of We drilled a total of 57 kilometers, kilometers of drilling for conversion In 2018, we also recorded a number of positive results
reserve-based life by defining new starting activities in the region of and updating of mineral resources. Among the projects still being prospected, we are regarding the definition of copper and gold mineralization
exploitation targets. Orcocobre, north of the Topara River. finishing up supplemental work to extend the mineral in the Goiás Magmatic Arc Project. Furthermore, we
We have three drill rigs already in Through the investment to develop resources in Hilarión (Ancash region, 230 kilometers from progressed mapping areas in the Tapajós region, which is
In 2018, all our operations operation and we plan to drill more the two underground mines, Pasco Lima, Peru), for which we are using directional survey the new frontier for mineral exploration in Brazil, giving us
received funding, planned and phased than 20 kilometers on a 570-hectare returned to growth levels higher than technology for the first time. According to the studies an advantageous position over most of our competitors.
according to the maturity level of each area in the region by the end of 2019. those recorded in 2017. Atacocha conducted to date, this is expected to become Nexa’s In Namibia, we expanded exploration of areas that
unit. Our most significant projects in In 2018, mine development increased raised the volume of materials from the third largest zinc mine. present high zinc and copper potential.
the period were: by 33%, which makes it possible to underground mines by approximately
continue boosting its output. 300%, due to the high ore content,
Vazante which led to a 7% increase in Cerro
Pasco Complex Pasco’s overall production. Resources and reserves
We have a ten-year project, begun
in 2013 and with an estimated total We move foward with the Morro Agudo/ We make an annual declaration of our proven and probable mineral resources and reserves, pursuant to statement of
investment of US$ 184.3 million, integration between the underground Bonsucesso Project Resources and Reserves follows the Definition Standards CIM 2014 (Definition Standards for Mineral Resources and Mineral
which seeks to extend the useful life operations at the Atacocha and El Reserves) and incorporated by reference in National Instrument 43-101 (NI 43-101) covering all mines and projects. The
of the mine. Initially, the goal was to Porvenir mines in 2018, forming the The project, which belongs to operating units Cerro Lindo, El Porvenir and Vazante also have mineral reserves declared pursuant to the SEC (Securities and
achieve a five-year gain, from 2022 Pasco mining complex. The objectives the Morro Agudo complex, aims Exchange Commission) Industrial Guide 07 (IG07) of the United States. These are available in the annual report Nexa 20-F, which
to 2027. Based on resources and were to maximize investments, at extending the useful life of this can be accessed at https://ir.nexaresources.com/regulatoryfilings. As at NI 43-101 of the CIM (Canadian Institute of Metallurgy
reserves, however, we have surpassed achieve cost savings and reduce complex (Ambrosia Trend) by at least and Petroleum), at December 31, 2018, the total metal contained in our reserves were 4,449 thousand tonnes of zinc, 440.2
this goal and we have reached 2034, the environmental footprint through 11 years. In 2018, we initiated a thousand tonnes of copper, 788.7 thousand tonnes of lead, 117,211 ounces of silver and 294.9 thousand ounces of gold,
that is, another 12 years. With the the synergies shared by the two mines pre-feasibility study (FEL2) regarding representing an increase of 4% of reserve total.
deepening of the mine, the due to their proximity and operational converting more mineral resources
expectation is to maintain its similarities. The project it is being (indicated and measured) with the goal Resources and reserves3
production at 140 thousand tonnes developed in four stages: administrative of increasing the project’s mineral Total Zinc Copper Silver Lead Gold Zinc Copper Silver Lead Gold
of zinc per year. As part of this project, integration of the mines (2014); reserves. In addition, in November Class4
(million t) (%) (%) (g/t) (%) (g/t) (thousand t) (thousand t) (thousand oz) (thousand t) (thousand oz)
the pumping station and the merging of the tailings disposal systems 2018, we filed an application for
Reserves
excavation of the well were delivered (2015), construction of a new power Preliminary and Installation Licenses
in 2018, in addition to construction transmission line that supplies both for underground mining activities with Proved 70.40 3.58 0.40 30.0 0.60 0.06 2,522.2 282.2 67,941 424.1 136.0
of the floodgate. Production at the mines (2016) and strategic evaluation the appropriate authorities. Probable 50.03 3.85 0.32 30.6 0.73 0.10 1,926.8 158.0 49,270 364.6 158.6
deepest levels represented 73% of the integration of the underground
of the contained zinc production operations and facilities (2018). We expect to begin construction Total 120.43 3.69 0.37 30.3 0.65 0.08 4,449.0 440.2 117,211 788.7 294.6
of Vazante during the year. in 2020, after the approval of the Resources
After the integration process, the necessary environmental licenses,
Measured 240.02 0.81 0.40 7.4 0.18 0.01 1,937.2 961.4 57,470 434.0 40.5
mines will use just a single lifting system. with the start-up of the mine
This will bring benefits to Atacocha such scheduled for 2021. Indicated 402.33 0.72 0.36 6.0 0.16 0.01 2,886.3 1,433.0 77,988 640.4 77.0
Total 642.35 0.75 0.37 6.6 0.17 0.01 4,823.5 2,394.4 135,458 1,074.4 117.5
Inferred 242.06 2.53 0.24 19.8 0.54 0.09 6,129.1 571.5 154,178 1,314.0 703.6
Observation: The estimate of reserves and mineral resources involves assumptions about future commodity prices and technical mining issues. The presented
Statement of Resources and Reserves follows the Definition Standards CIM 2014 (Definition Standards for Mineral Resources and Mineral Reserves).
3
he amounts shown in this table have not been adjusted to reflect our proprietary interests. The information presented in this table includes 100% of
T
the estimates of reserves and mineral resources of our consolidated subsidiaries and our joint ventures, calculated on the basis of NI 43-101 of the CIM
definitions standards CIM 2014, incorporated in NI 43-101, some of which are not wholly owned, as set forth in this share column available in the 6-k
mining report that can be accessed at https://ir.nexaresources.com/regulatoryfilings.
4
Mineral resources are reported exclusive from mineral reserves and have the effective dates described in the 6-K mining report.

Other important projects carried out in 2018: Smelting
■■ Constructionof the new waste disposal deposit Throughout 2018, the following operational efficiency
(Botadero Pahuaypite) to permit continued operations projects were highlights:
at Cerro Lindo, which is expected to start operating in
the first quarter of 2019. The desalination plant’s Jarosite Project in Cajamarquilla - Industrial-scale
seawater pipeline also was replaced, at an investment implementation of the conversion process of the Goethite
of US$ 11.8 million, to provide the mine with a reliable (an iron oxide mineral) production to the Jarosite (iron
supply of water from the coast. sulfate), boosting the zinc extraction yield from 94% to
97% and increasing nominal capacity from 330 thousand
■■ Improvements were made in the management of the to 340 thousand tonnes/year. Investments in the project,
Pasco Complex’s assets, increasing reliability, availability which is expected to be completed in the third quarter
and yield. Level A critical assets were identified within of 2019, are estimated at US$ 45 million.
the ten critical assets of the complex, which were
prioritized in 2018. Energy Matrix in Cajamarquilla - Structuring of
Cajamarquilla’s energy matrix project, in the implementation
■■ Expansion of Cava San Gerardo in Atacocha, confirmed phase. This project aims to replace with natural gas all liquid
after updating the model of geological resources and fuels (diesel oil, heavy oil from auxiliary boilers, heating the
Operational Excellence Axis reserves. The new pit has reserves on the order of 6 unit and the roaster during shutdowns), significantly reducing
million tonnes of ROM and an estimated useful life greenhouse gas emissions and fuel costs.
We seek to constantly improve our competitiveness vis à ore recovery method (sublevel stoping). The set of initiatives of 6 years. We are in the second phase of the project,
vis other producers and maintain the security of our assets in will raise the mine’s productivity as of 2019. finishing the geomechanical studies and licensing Biomass Boiler in Três Marias - With a more efficient
order to cope with possible downward price cycles. We do this process, with the beginning of the excavations operation than had been projected, the replacement of boilers
by maximizing the value of existing operations through a series In Vazante, the emphasis has been on the application scheduled for the second half of 2019. operated with petroleum-derived oil to a biomass boiler,
of actions that are aimed at: of technology recently adopted by the mining industry, begun in 2017, resulted in a reduction of 30% in greenhouse
known as ore sorting (more information in Innovation and ■■ Completionof a total of 5.5 kilometers of drilling in gas emissions and 35% in steam production costs.
■■ Boosting the utilization capacity Technology). In the unit there was also 70% progress Morro Agudo, mainly for identification and detailing of
in the dry stacking tailings project, which consists of the new ore bodies. In addition, 5.2 kilometers of drilling Autoclave Dehalogenation in Juiz de Fora - The
■■ Operational stability installation of a new filtering, drying, handling process has been completed focusing on the conversion and removal of impurities (Waelz oxide, fluorine and chlorine
and disposal of dry tailings. The solution will replace updating of mineral resources. halides) from steel industry waste showed a higher than
■■ Continuous cost improvements dam-based conventional waste disposal methods. expected yield, proving the efficacy of the process.
■■ Implementationof the remote detonation process
■■ Capital rationalization In Cerro Lindo, the implementation of the first phase of in Morro Agudo, leading to a production increase Sale of Waelz Aggregates in Juiz de Fora - Structured
digital access control was finalized. The second phase will of around 10%, while also improving the safety of and signed contract for the sale of slag produced in the
Likewise, we invest in technology, innovation begin in 2019, with greater control and details regarding the workers, who are no longer directly exposed to Waelz Oven (approximately 20 thousand t/month), for the
and automation to improve our productivity and the circulation of people in the area. In the year, the the detonations. production of Sinter and Iron Ore. In the approval stage for
competitiveness, broaden our safety culture and support swap out of trucks from 35 to 50 tons was consolidated, the Licensing Operation, with startup expected in the second
key sustainability goals, such as increased water recycling representing transportation availability above the mine’s half of 2019.
and reduced CO2 emissions and waste generation. SDG 9.4 current production capacity. In the second half of 2018,
the development of the mine increased by 30%, with
Through the ongoing actions taken, we were able better results, the opening of new access areas and
achieve of our operational excellence targets from 2025 higher productivity contributing to the stabilization of
to 2023. local production.
Mining We also are highlighting the improvement of the geo-

metallurgy process, as a result of the concern with the
One of the examples of investments in Mining operational predictability and operational stability of the mines. Implementation of the remote
excellence is the construction of a new ramp linking the The project involves the taking of samples, complete detonation process in Morro Agudo,
surface to the Pasco Complex’s (Atacocha and El Porvenir) mineralogical characterization of mines, definition of
leading to a production increase of around
mines, which reduces the distance and the cost of geometallurgical fields, flotation tests and recovery
transportation of manpower and ores. An underground
electric loader is also being tested to operate in deep and
remote areas, enabling more efficient and productive work at
models that provide a detailed knowledge of the ore,
year-by-year, guaranteeing time to anticipate, identify
and solve problems present in our operational areas.
10%
the site. Additionally, in 2018 we adopted a more productive

Enablers
Commercial GRI 102-6 To ensure improved proximity Logistics
and exchanges with the market, we
As one of the enablers of Nexa’s strategy, the Market differentiation organize workshops and technical and We seek to offer customers distinctive and customized services, quickly
Commercial area is focused on being increasingly market- In recent years, our business strategy has focused on market lectures to disseminate good responding to mitigate impacts in moments when there are service disruptions.
oriented and developing a global presence. Faced with a direct interaction with end customers, strengthening the zinc process practices and innovative One such example was during the truck drivers’ strike in Brazil in May 2018. We
scenario of an international price downturn and political and presence of the Nexa brand, deepening our knowledge of the applications, highlighting the were able to speedily review the delivery alternatives in order to eliminate or
economic instability in Latin America, this positioning proved global zinc market and, above all, adding value to our sales. enormous potential that exists for minimize flow interruptions that affected the logistics to much of the industry.
to be correct. We seek to differentiate ourselves from competitors by developing new demands. In addition,
offering a portfolio of products that goes beyond 25-kilo every two years we conduct customer We increasingly are investing in multimodal operations, seeking to improve the
In line with our goal of continuously strengthening our slabs (the standard for the commodity priced at the LME) satisfaction surveys. The latter, delivery reliability rate and service flexibility. In order to guarantee greater logistical
homemarket shares (Brazil and Latin American countries), and adding services that develop and retain the market. applied in 2017, achieved higher control, we are evaluating insourcing the fleet for some operations, including at
we have expanded our participation in global markets satisfaction results than in 2015. Aripuanã, a project that is in the execution phase in 2019.
through our commercial offices in Luxembourg and Houston. To this end, throughout 2018, we focused on the Nevertheless, in 2018 we put into
We have bolstered our presence in Europe, raising sales by standardization of the jumbos produced in all our units, practice a plan containing 29 actions In 2018, designed to integrate, simplify and streamline our processes, in addition
20% in the region, and also in Africa, with a 14% increase guaranteeing the quality of the product and, with the greater to address the issues that emerged in to guaranteeing better safety and cost reductions, we set into motion a plan to
over the past year. flexibility between plants, reducing service deadlines. We have the previous survey, reinforcing our complete the implementation of new Transport Management System (TMS) tools for
also developed the T-Jumbo to meet the demand of a large commitment to continuous all logistics operations in 2019, from raw materials through to the delivery of the
We also focused our efforts on better understanding the customer in South Africa, also opening up the market for improvement of our services. products to customers. In addition, we started the process of certification as an
Asian market, which accounts for two-thirds of the world’s attracting new customers in Europe. Authorized Economic Operator (AEO) for Brazil, a certificate Cajamarquilla unit has
zinc consumption. Our sales grew by 8% in the region and we had since 2015. In 2019, we will begin studies to extend the AEO to the other
conducted our first transactions with Vietnam and Russia, Aligned with the strategy of meeting the specific needs of Peruvian units.
surpassing volume expectations. customers, we have expanded our production of customized
alloys. As an example, we produce a zinc-aluminum-magnesium And demonstrating our commitment to safety, we recorded a reduction of 50%
We are working toward the global consolidation of the alloy, already widely used in the European market, now also used in accidents in the logistics area, resulting in a 59% lower internal lost time accident
Nexa brand, participating in the segment’s main national and in Brazil for the production of galvanized wire. In addition, we frequency rate. . SDG 3.6
international events as exhibitors and/or presenting market approved a project for pelletized zinc oxide in Três Marias, a
and technical lectures about our products and applications. format that confers greater fluidity to the product, optimizing Reduction of
We were present for the first time as exhibitors at one of the our clients’ production.
most important galvanization events in the segment and the
main one for the zinc market, Intergalva 2018, held in Berlin.
We also participated in an event of equivalent importance in
50%
in accidents in the
Latin America: Latingalva Peru 2018.
logistics area

Sustainability
All our activities follow strict sustainability guidelines as expressed in our research and development
Sustainability Master Plan, prepared in 2018 as a result of the review and
investments totaled
9.2
validation of the material topics that make up our strategic plan. We want to
be a sustainability benchmark, co-creating a significant legacy to society
based on a constructive relationship with our stakeholders. US$ million
During 2018, we strengthened the guidelines and initiatives that will

govern the development of good sustainability practices throughout the
company in the coming years, based on the material topics to be addressed, External initiatives GRI 102-12
with goals and deadlines: Water, Waste, Emissions and Energy, Local
Development, People (Diversity), Safety and Health, Human Rights (suppliers) Our commitment to sustainable
and Decommissioning. The material themes are monitored over the course of development is also expressed in our
the year, with the initiatives and results that have been introduced or met voluntary adherence to a number of
reported annually in this document. initiatives undertaken with national and
international entities. Among them are:
For the seventh consecutive year, our Nexa Resources Peru and Nexa
Resources Cajamarquilla units received the “Socially Responsible company” Global Compact - Since 2017, we
seal of approval in recognition of our organizational policies and practices. have been a signatory of this United
The prize is awarded by the Peru 2021 organization and the Mexican Center Nations Initiative, which aims to
for Philanthropy (Cemefi). The 2018 assessment was based on three key mobilize the business community
areas: Organizational Culture, Environmental Development and Risk and around the world to adopt ten
Impact Management. The award seeks to strengthen the importance of principles that represent fundamental Technology, automation and innovation
corporate social responsibility in the culture of organizations. values of human rights, labor relations,
the environment and the fight against We constantly strive to innovate and connect with the world and the trends.
corruption. We use technology as an enabler of the strategic growth axes and operational
excellence, making our operations safer, minimizing waste and optimizing
Sustainability Principles Sustainable Development production through intelligence. The commitment in this field was recognized
Goals - Also in 2017, we signed a by Valor Inovação Brasil, which highlighted us as one of the three most
1
o be recognized by society as a socially and environmentally
T commitment to the Sustainable innovative companies in the Mining, Smelting and Steel Industry category.
responsible company. Development Goals (SDGs), a global
agenda comprising 17 goals and 169 Our research and development investments totaled US$ 9.2 million in
2
o have sustainability as a strategy, guiding governance, management,
T targets to be met by 2030, adopted 2018, surpassing the US$ 8.5 million invested in the previous year. All
education, decisions and investments - creating value. during the United Nations Summit on innovation projects are developed using funding from the Finep Financiadora
Sustainable Development in September de Estudos e Projetos fund, whereas some are executed in partnership with
3
o consistently deliver good economic, social and environmental
T 2015. The agenda includes measures other institutions, such as the Empresa Brasileira de Pesquisa e Inovação
results, seeking operational efficiency and reliability according to to eradicate poverty, food security, Industrial (Embrapii), where we had six contracts completed and 14 that were
world-class standards. agriculture, health, education, gender still active at the end of the year.
equality, reduction in equalities, energy,
4
o be recognized as a company that attracts, develops and retains
T water and sanitation, sustainable Innovative technologies are particularly important to extend the recovery
talent to create value and build a just and inclusive society. production and consumption patterns, of metals, including ore sorting, which consists of the use of equipment with
climate change, sustainable cities, sensors that make it possible to separate large sterile volumes in dry
5
ommitment to the well-being, health and safety of our
C protection and sustainable use of processes. The goal is to raise the useful lifetime and ensure the perpetuity
employees, clients and partners. oceans and terrestrial ecosystems, and sustainability of our mines, based on the viability of marginal zinc content
including economic growth, resources (see details in the ore sorting on page 40).
6
ontribute to the development of the communities in which
C infrastructure and industrialization,
we operate. among others. This report indicates the A project to recover barite as a zinc mining waste by-product is under
relationship between the SDGs with our development in Peru. Pilot-scale laboratory tests have resulted in the
7
ncourage cooperation and participation of all employees
E material topics and long-term goals. production of barite with high purity (above 95%) and higher density than
and stakeholders in the construction of partnerships and joint obtained from the natural mineral. Barite is mainly used in oil, oil and gas
efforts, aiming to generate mutual value. drilling, for paint and coatings, medicines and by rubber and plastics

producers. The next step is the development of a project In addition to ore sorting and zinc recovery projects, Mining Lab
to build a pilot plant capable of obtaining 100 tonnes of we have a Cut Off reduction project in Vazante, which will
barite per day. allow a reduction of up to one percentage point of the In 2018, we organized the second edition of the Mining The judges, made up of Nexa’s directors and general
current 4% of zinc through new mineral processing Lab, with 291 registered projects and 20 selected startups. A managers from several areas, chose nine startups, which will
Also in 2018, we performed tests with fuel additive technologies and reduction of processing costs (by means week before the chosen startups presented their projects in a receive financial investiments to develop their projects, weekly
of the company Tecfica in mobile equipments of the fleet of ore sorting and new flotation reagents). The reduction live setting, the candidates were monitored by technical and mentoring for a year, financial, legal and marketing management
of El Porvenir, which resulted in a 7% reduction of diesel of Cut Off makes it possible to recover metal, previously managerial mentors. The entrepreneurs formatted the value qualification, as well as access to facilities and the technical
consumption. In 2019 it will be replicated to the units of unprocessable, to increase the life of the mine. proposition of each project to present to the judges, who information from the Nexa units.
Nexa Peru with the aim of reducing diesel consumption evaluated criteria such as viability, strategic alignment,
and, consequently, reduction of GHG emissions. Projects from previous years have advanced, such technology, solution and team.
as the biomass boiler in Três Marias, which reduced
Recovery greenhouse gas emissions by 30% and the de-hydrogenation
of Waelz oxide by autoclaving and the transformation Mining Lab Process
We have also have been developing technologies for of Waelz furnace slag into an aggregate for the cement
Validation by the
recovery of zinc from tailings in Vazante and Três Marias. industry in Juiz de Fora (see more information about these Analysis Analysis
Pre-qualification
Evaluation of the
directorate, legal and
of platform of platform deliverables by
By reprocessing waste containing important metals, we projects in Operational Excellence). projects projects
and interviews
the sponsors
documentary
department
were able to increase zinc ingress and recirculation in the
units, improving both the financial margin as well as the
Prospecting for 1st 2nd On-line Boot Camp Industrial
useful lifetimes of the current mines. In Vazante, for projects selection selection Boot Camp Presencial (Imersão)
Demoday
application
example, the technology will make it possible to increase
the useful life of the mine by four years. This technology
should also be applied in Peru by 2019. Projects selected
Projects meeting as most closely Maximum Maximum
the program meeting the number of number of
Start-ups in the Projects Projects
requirements and requirements and projects that projects that
countries that meeting the
are seeking program
that demonstrate the most viable will be part of will make a that make
their solution to by the technical the immersion presentation sense
solutions requirements.
Ore sorting NEXA remotely team at NEXA stage. in person
Resources
Among the projects we consider the most promising in 2018 We performed bench scale and pilot trials and the studies
are those based on ore sorting technology. Widely used in evolved rapidly, which allowed the installation of an ore
1 2 3 4 5 6 7
other industries, such as food and diamonds, technology was sorting plant in Vazante, for tests with ore from Vazante,
The prospecting Initial platform Second screening by Startups are classified Startups selected for Presentation of the Finalists undergo final
recently introduced into the field of mining. Morro Agudo and Ambrósia Norte. process is managed screening technical leaders for the online bootcamp the Boot Camp startups solutions in validation so that their
and monitored by the via the EAD platform, participate in the Demoday to the projects can be sent
Mining Lab’s mentors and leaders of workshops, mentoring Nexa executive board for industrial
The ore sorting process is based on dry ore/sterile separation The technology is also being tried in Peru. In order to take management with the each project evaluate sessions and technical implementation.
with significantly coarser grades (8 mm to 200 mm) when advantage of the medium- and low- metallic grade minerals support of Nexa’s international and support assistance to
compared to conventional mineral concentration (0.1 mm to from the exploitation areas, the preliminary tests at Atacocha communications area national startups create their Business
Case (live presence).
1 mm - separation magnetic, flotation, etc.), which are and El Porvenir demonstrate an average removal of 50% of
usually performed with fine and wet granulometry, thus sterile ore with a possible 1.5 average concentration ratio.
avoiding the intensive use of water for mass transport. The operations are scheduled to start in September 2019. Pioneering
The ore sorter operating mechanism involves the use of Introduced in 2016, Mining Lab is a pioneering industry Besides cost reductions, the projects also provide gains
sensors that identify different properties of the minerals of program aimed at linking the world of mining and smelting to in environmental and social issues such as lower atmospheric
interest and of gangue. As ore passes through the belt, the B2B startups and to change the mindset of the mining sector, emissions through increased energy efficiencies and renewable
sorter’s sensors detect and transmit information to high making it increasingly intelligent. Besides opening doors for the energy projects, and promoting the generation of income in
pressure air vents located at the end of the equipment just development of new opportunities applied to the business, it the regions with subsequent benefits for communities in the
after the end of the belt. These air vents are extremely guarantees other competitive advantages, as we gain speed vicinity of our operations.
accurate and blow out the ore/sterile that has been in research development along with reducing innovation
identified and selected by the sensor. The system investment costs. Although it is coordinated by the Innovation and
contributes to more economical and efficient solutions in Technology department, the startup initiative will be applied
the recovery of materials. The first edition of the initiative was only for Brazilian in a number of other company areas and in as social projects.
startups presenting renewable energy and nanotechnology Starting in 2019, Mining Lab will be a continuous program with
solutions. The second cycle was open to representatives challenges that will be introduced into the platform throughout
from Brazil, Canada, Peru, Chile and the United States, and the year.
offered funding amounting to US$ 2.4 million in technology
initiatives in the fields of automation, Internet of Things
(IoT)/IT, and mineral concentration. SDG 7.A

Selected projects in Mining Lab 2 SDG 7.A Automation
Area Selected Startup Proposed solution In 2018, we implemented the Automation and Information Master Plan (PDAI) for the digital transformation of
both current production and new units. Projects within each area of the PDAI — Greenfields, Mina (Digital Mining®),
Mobile technology that automatically collects, identifies and Processing and Smelting — have progressed as planned. In 2018, the PDAI was implemented in Atacocha and El
processes geotechnical measurements. Through a tablet, any
Rockmass (Canadá)
operator can access the technology at a safe distance from the
Porvenir, and in projects with operations scheduled to begin in 2019. The following table presents the results:
mining fronts.
Selected Startup
Automation and waste master plan SDG 7.A, 8.2
Robotic system for autonomous surveying and underground
4HelixLabs (Peru) mining inspection that increases efficiency and safety under
extreme conditions. Area Project Results in 2018
Use of artificial intelligence to identify the best conditions in Greenfields Aripuanã Operations will begin with an adequate level of automation, having
Geoinnovación (Peru) captured gains in Net Present Value (NPV) of more than US$ 10 million
Information manipulable parameters and guidance to operators in real time.
Technology and for the project. Includes systems already tested in the other units that add
Internet of Things Use of artificial intelligence and big data to improve the predictability gains in safety, production and stability.
ShiftAI (Brazil)
of metal price quotes on the London Stock Exchange. Digital Mining Remote detonation Implemented in Morro Agudo, a project in conjunction with micro-tracking
monitoring offers an NPV of US$ 3.5 million.
New electrochemical treatment system that improves the efficiency
Aquova (Canada)
and effectiveness of sulfate and magnesium treatment. Ventilation on demand (VoD) Implemented in Vazante phase 1 (surface), with reduction of 18% of
energy consumption of the main ventilators. Pilot for full VoD indicates
Circular New product that makes it possible to capture different types productivity gains of 1% and energy reduction of up to 50%.
Biopolynet (Canada)
economy of solids in tailings thickening systems.
Dispatch system Being installed in the Vazante unit. System reduces queues and unproductive
Process for the use of waste containing zinc and other hours, boosting production by 5 to 10%. Scheduled deployment also in
Knowledge (Peru) Cerro Lindo, test version, in 2019. NPV of US$ 9 million.
heavy metals.
System for prevention and Scheduled for deployment in 2019 and included in the Aripuanã project to
Optimization of the crushing process, innovative for using
collision between people avoid collisions between equipment and people.
Mineral vibration techniques with gain stages, increase in up to 30% of
E3min (Peru) and machines
Concentration production and recovery of metals and reductions of about 10%
in consumption and energy. Processing Containment structure Implemented in Vazante and Morro Agudo and expected to expand to the
alarm system smelter units in 2019.
Integration and standardization of processes and data, with an
Logistics Authenticiti (United States) Automation and control Project start-up: advanced process control application, which uses image
information security guarantee.
of the comminution and analysis and controls in real-time operations automatically to achieve
flotation at El Porvenir and quality, maximize production and reduce input costs.
Cerro Lindo
Morro Agudo reagent Initiated intelligent system implementation for control and dosing of the
Projects under development SDG 7.A automation flotation unit’s reagents, reducing input consumption by 2%, mainly used
in the processing system.
Of the five projects selected in the first year of the Mining Gas from organic waste – ZEG Environmental’s flash Smelting Advanced process control A pilot was carried out in Juiz de Fora through the Outotec System, with
Lab, three are in the developmental phase of an industrial dissociation system transforms any kind of organic waste an estimated gain of 2% in the process feed. Three months of tests will be
conducted in Três Marias to validate the concept and the software.
pilot and soon should be implemented. They contemplate into gas, and this into steam, which can be used in industrial
solutions in renewable energies, which should represent processes, reducing the consumption of fossil fuels (coke Control Network A test was carried out in Juiz de Fora with a process control network
Management management platform, presenting a potential gain through the reduction
significant energy cost reductions. Through actions in the and oil), which are more expensive and polluting. The of 260 tonnes of zinc powder. The platform will be implemented in Três
Três Marias system, we are seeking to produce zinc with one equipment to be installed in Juiz de Fora is expected to be Marias, Vazante and Cerro Lindo in 2019.
of the lowest GHG emissions rate in the world. Projects put into production in 2020, using eucalyptus and urban Hydro Cajamarquilla Solution flow stabilization project in hydrometallurgy and coordination of
featuring challenges in nanotechnology selected in 2017 waste as inputs. Increased Stability control networks initiated, operating within the constant flow philosophy
did not present applicable results on an industrial scale. and obeying the operational restrictions for tank levels. Thus, the master
Biomass Fuel – A project from Bioware Desenvolvimento control system will optimize the consumption of zinc powder.
Biodiesel – Bchem Solutions technology turns leftover de Tecnologia de Energia that transforms organic materials Increase Stability Initiated instrumentation project and intelligent software to control and
vegetable oil, collected in restaurants in Minas Gerais, into (biomass) into fuel oil for industrial use, which can be used in Cajamarquilla Ustulator optimize the feed and other important process variables, gaining 1% in
Line 1 productivity.
a biodiesel product with high combustion power to be used furnaces that produce zinc oxide. The project is in the pilot
as fuel for mining equipment, presenting low production of phase and uses eucalyptus as its raw material. In addition to Flotação Ag Optimization Project start-up: advanced process control application, which uses image
analysis and controls in real-time operations automatically to achieve
waste upon burning. This averts this cooking oil from being reducing the emission of greenhouse gases, the project will quality, maximize production and reduce input costs.
disposed of in the environment, polluting rivers and the soil generate income in the region through the purchase of
while also replacing the fossil fuel traditionally used in the eucalyptus logs. The challenge for 2019 is to standardize
mining industry. In 2018, the Bchem pilot plant was put into the bio-oil produced and monitor furnace performance.
operation and the biodiesel produced (8 thousand liters)
in the period was already used to run the engines of the
Vazante unit’s truck and van fleet.

Information Technology
As part of the move to give Information Technology a more strategic and
cross-cutting role in the organization, implementation of the Nexa Digital
Transformation project continued through an integrated, controlled
operational plan to support the decision-making processes in a number of
different areas, ensuring complete data security. Furthermore, we are
preparing to advance both the industrial environment with the PDAI -
Industry 4.0 automation and information Master Plan, and the corporate
environment, with the Digital Workplace. To this end, we focused on three 2018’s MAIN PROJECTS
areas over the year:
Data and Intelligence Management - In 2018, we developed the PDAI - Industry 4.0
Enterprise Data Management (EDM) project to implement a global and unique ■■ MES (Manufacturing Execution System) Program for Três Marias
database that will give more agility and allow access to information, ease of ■■ Automation of production and digitizing laboratory management in Vazante
reporting and the possibility of using analytics tools for artificial intelligence. ■■ Production performance analysis
All areas will be involved in the EDM Project, scheduled to finalize in 2021. ■■ Communication system expansion
■■ Definition of a strategic roadmap for the implementation of high-availability
Information Security - We implemented a Cybersecurity Program with networks in underground mines

several cutting edge initiatives to mitigate threats and vulnerabilities of
systems and effectively meet the various audits inherent in a public company
and thus increase our information security level of maturity. Digital Workplace
■■ HR - optimization of internal relationship websites
Technological Architecture - We concluded the evaluation of the IT ■■ Commercial - implementation of the Salesforce digital platform
infrastructure and its applications to identify the best solutions in the market ■■ IT - mapping processes and capabilities for digital transformation
and to provide fully evolved systems, with cost reductions, faster delivery of ■■ Intelligence and the market - building a single data base
solutions and mitigation of errors and risks arising from isolated decisions.
User Experience - Created in 2017, the User Experience program seeks to Data management and intelligence
bring incremental innovations to the corporate environment from solutions already ■■ Creation of data management department and governance
available in the market. In 2018, we investigated together with the business units ■■ Data intelligence management program event
over 60 ideas and finally selected the four most advanced ones in terms of
guaranteed results for the operations:
Information Security
■■ Evolution of Cybersecurity governance aligned with the Nexa’s new objectives
■■ Implementation of the information security roadmap for achieving maturity
User experience solutions
Selected Technological architecture

■■ Implementation of the IT architecture strategy roadmap
Unit startup Proposed solution
■■ Application and server rationalization program
Use of robots gives greater assertiveness for
■■ Migration of the technological assets to the cloud
Vazante MVISIA monitoring loads and sending them to the correct
ore pile. ■■ Creation of the Network Architecture Roadmap
Reduced purchasing and inventory costs using

Vazante 3D Criar
3D printing for spare parts.
Training solution using immersive Virtual Reality
Três Marias MRVIT The other enablers of the strategy - People and Organization, Supplies
technology (glasses and 360° display device).
Implementation of the Chatbot solution to support and Risk Management - are detailed in the Corporate Governance and
Corporate Brasoftware employees, replying to doubts and questions related Performance chapters
to vacations and benefits.

We adopt the best corporate governance practices to ensure
Corporate
transparency, fairness, responsibility and accountability in our
businesses. We extract what is essential from the present, with
a responsible view of the future, to generate value for us and for
society. We go beyond efficiency and technical rigor, achieving the
trust of people and the markets.
governance
Our main policies are established by the Board of Directors and supported
by three advisory committees: Finance; Remuneration, Nominations and
Governance; and Audit, the latter made up only of independent board
members.
We have published a Corporate Governance Manual, based on our purpose

and values, designed to guide decision-making and protect the interests of
the shareholders, the company and the market. The model is intended to
facilitate the flow of information between our executives and other key
decision-makers on our team and ensures that the appropriate principles are
applied consistently across the organization. GRI 103-1, 103-2, 103-3

Governance structure GRI 102-18
Our governance structure is composed of the Shareholders’ Meeting, the

Board of Directors, the Advisory Committees and the Board of Executive Officers.
Governance structure
Nexa Shareholder’s Meeting
Nexa Board of Directors
Remuneration
Finance Audit Nomination
Committee Committee and Governance
Committee
CEO
In October 2018, we completed Organizational structure Capital structure GRI 102-5 Internal Departments
one year as a publicly traded company Audits
■■ Sales Supplies and Logistics
with shares on the New York/NYSE ■■ Smelting
(United States) and Toronto/TSX
■■ Mining
(Canada) stock exchanges. Nexa came
■■ Human Resources and Institutional
into being as a strong and structured Nexa Resources S.A.5
Relations
company, since governance bodies
were in place before the organization’s
initial public offering in 2017, Nexa Resources -
99.91%
100%
64.3% ■■ Mineral
■■ Finance
Exploration and Technology
and Investor Relations
Cajamarquilla S.A. 35.7%
proffering autonomy and agility to Nexa ■■ Sustainability and Strategic Planning
decision-making and business strategy Smelter: Cajamarquilla Recursos Minerais S.A. ■■ Project Development and Execution
definitions. Our governance model is
constantly evolving, since we believe
80.06% Mines: Vazante e Morro Agudo
Nexa Resources Smelter: Três Marias e
that good corporate governance leads
Peru S.A.A. Juiz de Fora
us to generate more value for the
shareholders and for society. Mines: Cerro Lindo, El Porvenir 100%
e Atacocha Shareholders Meeting
Pollarix S.A.6
It is our main decision-making body, empowered to amend the Bylaws,
Energy Assets
elect or dismiss members of the Board of Directors, approve accounts and
Votorantim financial statements, and other matters that are vital to our businesses.
5
Nexa Resources has a direct ownership interest of 0.17% in Nexa Resources Peru S.A. and an indirect Freefloat
stake of 80.06% through the Cajamarquilla unit; 15.79% of the publicly traded shareholding and the
remaining 3.97% of the shares are in Treasury. Excludes the investment class shares.
6
Nexa owns 100% of the common shares and 33.3% of the total capital of Pollarix.

Advisory Committees GRI 102-18 Audit Committee - Comprised of Remuneration, Nominations
three independent members of the and Governance Committee –
In its quest for continuous excellence, BoD, its objectives are to supervise Composed of two members of
the Board of Directors has established the integrity of financial statements the BoA, one being independent.
committees to advise it on monitoring and internal control systems, monitor This committee is responsible for
the company’s performance. the risk management process, and evaluating compensation models,
Composed of board members, the establish ethics and conduct standards recommending candidates for CEO
committees are permanent and cover and procedures. and the Board of Directors, assessing
Audit, Finance, Remuneration, the performance of the Board of
Nominations and Governance matters. Finance Committee - Comprised Directors, the CEO and each of the
of three members of the BoD, one Advisory Committees, and developing
Each committee has its own set of independent. It is responsible for corporate governance guidelines
internal rules, which establishes roles understanding market scenarios and and principles.
and mandates, rules and procedures trends, defining strategies and financial
for its operation. There are at least policies, evaluating and monitoring
four meetings per year, and periodically annual investment plans, proposing
one of the members reports on the guidelines for cash management and
activities of the committee back to the company’s liquidity position.
the BoD.
Board of directors GRI 102-22
(From the left:)
Edward Ruiz
Independent Member (Audit Committee
and Finance Committee)
João Henrique Batista de Souza Schmidt

Member (Finance Committee)
Board of Directors (BoD) Board of Executive Officers
Diego Cristóbal Hernandez Cabrera
It strives for fulfillment of the Our Bylaws require that the Board of Member Our Board of Executive Officers is made up of leaders who are able to act globally in key areas of business and in
business objectives and monitors our Directors be comprised of at least five (Finance Committee) relationships with all stakeholders. It aims to ensure the development and execution of the strategic and budgetary plan,
performance, seeking business and at most 11 full members, at least based on guidelines received from the Board of Directors.
longevity. The BoD, among other three of them independent, in order to Jean Simon
activities, is responsible for establishing comply with the rules established by the Member Comprised of the president and eight directors, it is responsible, among other things, for monitoring strategic
a general guide for the company’s stock exchanges in which we are listed. planning, discussing financial and non-financial issues and devising tactical action plans for the teams.
business, defining mission, strategic The members’ term of office is one year, Jane Sadowsky
objectives and guidelines; conduct with the possibility of re-election. The Independent Member Board of executive officers
annual adoption and approval of Board of Directors (BoD) is composed of (Audit Committee)
strategic planning; approve transactions nine members, including two women
related to Capex investments, loans or and seven men, of five nationalities - Luis Ermirio de Moraes TITO MARTINS
derivative contracts, mergers, spin-offs, Brazilian, Canadian, American, Croatian Chairman of the Board (Remuneration, President and CEO
mergers, divestitures and joint ventures, and Chilean. No member, including the Nominations and Governance Committee) Nexa
in accordance with the provisions set Chairman of the Board, exercises an
forth in the Bylaws; directing and executive function in the company and Daniella Dimitrov
ensuring the company’s governance and all are compensated. GRI 102-23 Independent Member
sustainability. (Audit Committee)
Eduardo Borges de Andrade Filho

Independent Member (Compensation,
Nominations and Governance Committee) RICARDO ARLENE FELIPE
LEONARDO MAURO JONES VALDECIR PORTO RODRIGO
More information on the Board of Directors’ attributes and access to each member’s résumé is available BELTHER BOTASSINI DOMINGUES MENCK GUARDIANO
COELHO BOLETTA Senior Vice President
Vice President Vice President
at https://ri.nexaresources.com/BoardofDirectors Ivo Ucovich Senior Vice President Senior Vice President
Senior Vice President Senior Vice President of Sales, Supply &
of Human Resources
Senior Vice President
of Sustainability
Mineral Exploration and Project Development Logistics and Director of Finance and Group
Member Mining Smelting
Technology and Execution President Nexa
and Institutional
CFO
and Strategic
Relations Planning
Peru

Ethical behavior
GRI 102-16, 103-2, 103-3
We are committed to running our business to the highest Analyzed and approved by the Board of Directors, The channel is administered by an independent and qualified outside company. This organization receives all
ethics and integrity standards and, based on this commitment, these documents address aspects such as human rights, complaints, makes a preliminary classification and releases systemic access to members of the Nexa Conduct
in 2018 we optimized our Compliance Program (Programa de political contributions, conflicts of interest, worker’s Committee who are responsible for handling complaints, conducting investigations and recommending corrective
Compliance), which specifically spells out the conduct we rights and duties, among other topics. Because the measures, when necessary.
expect from all of our own and outsourced employees in Anti-Corruption policy has changed, a new e-learning
dealing with a wide variety of different situations. The Board of course is being prepared to be applied to all Nexa
Directors is one of the main agents in promoting the program representatives in 2019. GRI 205-2
and we are determined to ensure its compliance so that we
can manage our business to the highest standards, with a The Code of Conduct has also been updated in the
penalty for actions that do not conform to our program. The light of the new policies. In addition to online consultation Conduct Committee GRI 102-17
area of Risk Management, Internal Controls and Compliance is of the documents, doubts can be clarified directly with
responsible for managing and disseminating this program. the Compliance team. The ensure dissemination of the The Conduct Committee is an executive body All reports are evaluated and monitored until they
Linked to the Financial Department, the area is supported by documents to all of the company’s areas and suppliers, an composed of Nexa’s CEO and those responsible for the are duly resolved. In 2018, 139 reports were received
Internal Audit. e-mail was sent out and physical materials delivered for Legal, Human Resources, Compliance and Internal Audit through the channel, being resolved and/or closed in
consultation. The signing of a Receipt Protocol confirmed areas. It may request the participation of other areas, if an average period of 28 days, compared to 41 days over
One of the main pillars of the Compliance Program that the document was received. necessary. In any case involving members of the Executive the previous year.
is the Nexa Code of Conduct, essential in guiding activities Board, the Conduct Committee shall refer the matter to
and supporting decisions made at all levels of our company. In all countries, we organized a Compliance Day in the Audit Committee and the Board of Directors to always Complaints and denunciations of another nature,
Based on the century-old values of the Votorantim Group, December, involving board members, managers and general assure the independence of the process. These bodies are such as customer services, supplier management or
this document was revised in 2018 and guides our internal managers. By 2019, these activities will be extended to the responsible for investigating and managing any penalties. community-related issues are addressed to Customer
behavior and the way we interact with different stakeholder entire organization. No cases of corruption or violation of Service (SAC) and, in the case of labor issues, to the
publics. In the year, all BoD members received training in antitrust laws involving employees or business partners were Human Resources (HR) area.
the human rights guidelines. Beginning in the first quarter confirmed in the period. GRI 205-2, 205-3, 206-1
of 2019, this training will be applied to all our employees. Ethics line reports 2017 2018
GRI 412-2 Compliance-related issues are reported to the Audit Analyzed and considered to have standing 40 43
Committee, which is responsible for periodically bringing
The Code of Conduct is a public document, shared them to the attention of the Board of Directors. Analyzed and considered unfounded 77 76
with all stakeholders, including employees, suppliers,
Received in the year under analysis 11 13
customers, communities, NGOs, government entities,
shareholders and other individuals and organizations with Ethics Line GRI 102-17 SDG 5.1 Closed due to lack of information for analysis 12 7
whom we interact, to ensure that we achieve excellence in
TOTAL RECEIVED IN YEAR 140 139
all our practices. To become cognizant of, analyze and resolve any issue
related to Compliance or to report possible violations of the
Our beliefs and values are detailed on the internet Code of Conduct or any policy, procedure, law or regulation,
(https://www.nexaresources.com/beliefs-and-values). GRI 102-16 we have made an Ethics Hotline available to the in-house and Discrimination reports received by the ethics line GRI 406-1 2017 20187
outside publics. Through this channel it is possible to fully, Received in the year under analysis 8 6
anonymously, report any suspicion of financial crime, fraud,
New policies SDG 10.3 corruption, discrimination, harassment or other types of Analyzed and considered to have standing 27 27
ethical violations. Available in Portuguese, English and
Analyzed and considered to be unfounded 40 56
In 2018, the Compliance area underwent restructuring, in Spanish, the service can be accessed through the electronic
line with its configuration and global coverage, standardizing address: (https://secure.ethicspoint.com/en/ethics-line) TOTAL ANALYZED OR UNDER ANALYSIS 75 89
the guidelines for all units. We reviewed and optimized our or by phone (Brazil: 0800-892-0741 (Portuguese); Peru:
Compliance Program to ensure fulfillment of the laws of the 0800-50-000 (Spanish) and 0800-50-288; United States:
countries in which we operate. We published four new policies 1-855-888-9926; Austria: 0800-200-288; Canada 7
For the 27 cases considered to have standing, 10 were related to harassment and/or abuse of power and 17 to persecution, disrespect and
(Compliance, Anti-Corruption, Antitrust/Competition, and 1-855-888-9926 and 1-855-350-9393; and Luxembourg: discrimination. In all cases, corrective measures were adopted, such as dismissals, verbal warnings, suspensions and/or transfers.
Prevention of Money Laundering and Terrorism Financing) 800-201-11 (English and French).
available in three languages on the company’s website
(https://ri.nexaresources.com/documents), as well as nine We have made gains in improving the processes of standardization of due diligence for the evaluation of suppliers, which
internal procedures that detail day-to-day management is carried out at the beginning of the relationship and thereafter throughout the contractual periods with third parties.
of these topics. SDG 16.5 The documentation requested from suppliers is aimed both at ensuring adherence to the policies and the Nexa Code of
Conduct and the requirements of countries with which we have commercial relations.

Risk management Quarterly report Business risk management model
GRI 102-15, 103-1, 103-2, 103-3
We introduced the Risk Management Report in

We treat risk and opportunity management as a 2017, which each quarter presents the main factors
significant point in our business strategy and the topic is mapped in the operating units and corporate areas and
ingrained in our corporate guidelines. Since 2016, we have the respective actions that are being taken to mitigate Establish the context
followed the Enterprise Risk Management Policy (ERM), which them. This resource aims to provide a broader view of
addresses the main risks in all corporate areas and operating all the initiatives and teams involved in managing
units and is applied to subsidiaries and controlled companies. business-related risks.
Risk
The mapped risks include four major topics: Compliance; As part of the annual process, all our units and assessment
Business Risks (operational and strategic, including socio- corporate areas participated in the operational risk analysis
environmental aspects); Internal Controls and Financial Risks. assessment cycle. In addition to the reassessment and
The risk matrix is reviewed annually to ensure it is always discussion of all risks, the managers presented the most Risk identification
aligned with our strategic plans. critical risk surveys and the respective mitigation actions Consulting and Monitoring and
being adopted, based on the criteria established in ISO communicating critical analysis
For risks considered critical and high, we draw up 31000, which defines benchmarks for different phases of
Risk analysis
action plans with deadlines established for completion. management (contextualization, identification, analysis,
Our risk monitoring actions involve, in addition to the area monitoring and review, treatment and evaluation).
directly responsible for the topic, the Risks, Internal Controls
and Compliance team, the Executive Board members At the end of 2018, we concluded the implementation Calculation of the risks
responsible for the area and the Board of Directors. For of the BWise tool for systematization and efficiency gains in
risks below this classification, monitoring is conducted at the risk assessment and monitoring process. Subsequently,
opportune moments by the areas involved. The details in 2019 we will conduct training and migration rounds on
of the risks we manage can be found in the 20-F form, the full business risk management activity for this platform.
Treatment of the risks
submitted to the New York Stock Exchange and accessed
at https://ir.nexaresources.com/regulatory-filings.

Stakeholder engagement Our impacts
We continually improve our relationships with all third sector organizations and the press with equal respect
stakeholders as a way of maintaining the sustainable growth and consideration.
of our business and a permanent, open and transparent
dialogue with each stakeholder. We consider the stakeholders As a way of maintaining engagement with these groups tio
n
g
8
loita ionin
that represent higher impacts on our operations and and promoting ongoing dialogue, we participate in sector le
xp
iel
d
sin
g iss
ra nf g es er mm
operational strategy to be the most important, as well as forums and meetings, hold events with our business partners ne ee nin oc elt les co
Social Mi Gr Mi Pr Sm Sa De
having a greater influence on our business. These groups and have meetings with leaders of communities neighboring
include shareholders and investors, communities, employees our operations. This is all designed to collect suggestions and Employment and income + + + + + + -
and clients. However, we view banks, suppliers, sector complaints, clarify doubts and provide communities with
associations, government authorities, regulatory agencies, information about our ongoing projects. Local Development (Positive Agenda) + + + + +
Increase in cost of living - - - -
Local infrastructure overload 9 - - - - -
Meetings with investors
and capital market Environmental
representatives | Quarterly
Press releases | Interviews
| Site and environmental
Earnings Release | Impacts on biodiversity 10 - - - -
Conference calls | General
+ + + +
program visits | Website | Assemblies | Board of
Annual Report Recovery of Degraded Areas
Directors Meetings |
Website | Press Releases |
Sectorial events |
Roadshows | Ethics Hotline
Noise - - - -
Social and environmental
Meetings | Social and
| Annual Report
programs | Meetings in the
localities | Volunteering |
Waste - - - -
environmental programs |
Qualification of NGOs | Website
| Ethics Hotline | Annual Report
Socioeconomic
characterizations of the
Greenhouse Gases - - - - - - -
Shareholders communities | Website |
Press and investors Ethics Hotline | Annual Report |
Social Agenda
Other gases (NOx, SOx, etc.) - - - - -
Third Sector
Community
Particulate matter - - - - -
Organizations Open Dialogue with Chief
Executive Officer | Strategic
Effluents - - -
and management meetings |
Meetings | Employees,
What’s Nexa | Weekly
Security Dialogue |
Disposal of mining and smelting waste - - -
Communication in writing | Regulatory third-party Performance and
Website | Ethics Hotline |
Annual report
bodies Stakeholder contractors,
interns and
Development Dialogue | Water 11 - - -
Career Planning and
engagement apprentices Development | Ethics Line |
GRI 102-40, 102-42, 102-43 Annual Report Economics
Governing Customers
Tax on products and services + + + + + +
Bodies
Tax on ore withdrawn CFEM + +
Contact with sales teams |
Meetings | Contacts |
Website | Ethics Hotline | Suppliers Banks
Satisfaction survey | Ethics
Hotline | Annual Report
Cash generation + + + +
Annual Report Industry
associations
Value creation 12 + + + + +
GRI 102-13
+ Positive impacts - Negative impacts
Meetings | Sectorial Face-to-face meetings | 8

Decommissioning considers the moment of closure of the activities of the units.
Social and environmental meetings | Ethics Hotline Conference calls | Sectorial 9
Includes the circulation of trucks on local roads, public housing infrastructure, health, mobility and education.
criteria for selection and | Annual Report | events | Sponsored Events |
Participation in Quarterly Earnings Release |
10
Impact on fauna and flora, including plant suppression.
contracting | Ethics Hotline |
Annual Report governance bodies: Ethics Hotline | Annual 11
Impact on the river course, lowering the water body and also water use.
Agency for the Report 12
Added value for the cities in which Nexa is located.
Technological
Development of the
Brazilian Mineral Industry
(Adimb) - Board of
Directors; Brazilian
Mining Institute (Ibram)
- Board member

Economic-Financial
Operational results
Our production reached the 2018 forecast for all metals. Zinc contained
in concentrate production totaled 373 thousand tonnes, stable compared to the
375 thousand tonnes produced in the previous year. The production of zinc equivalent
corresponded to 556 thousand tonnes. The decrease of 3% in comparison with
the 571 thousand tonnes of zinc equivalent produced in the previous year was due
to the lower production of copper, mainly driven by lower grades.
Production of metal contained in concentrate (thousand tonnes)
Zinc Copper Lead
Vazante 140.8 - 1.2

Morro Agudo 26.4 - 6.1
Cerro Lindo 130.3 38.3 12.8
Atacocha 17.3 0.1 15.6
El Porvenir 57.9 0.6 16.6
Performance
Total 372.8 39 52.3
Our smelters delivered excellent performances, with production remaining

stable during the year. Reaching the top of the sales forecast range for 2018.
Sales of zinc products processed in our smelters (metallic zinc and zinc oxide)
reached 617 thousand tonnes in the year, 4% above sales of 594 thousand
tonnes in 2017, mainly due to the greater volume in the units of Cajamarquilla
and Três Marias, which rose 6% and 3%, respectively.
Sales of smelter products (thousand tonnes)
Metallic Zinc Zinc
Juiz de Fora 78.7 -

Três Marias 167.4 38.2
Cajamarquilla 332.6 -
Total 578.7 38.2

ZINC (US$ /t) Financial results Net debt/Adjusted EBITIDA Liquidity and debt
Average price on the LME
Net revenue from our 2018 operations of US$ 2,491.2 million At December 31, 2018, our total gross debt was
was 1.7% higher than the value recorded in 2017 (US$ 2,449 million) US$ 1,428.9 million (only principal), consisting mainly
2,922
2,896
0.50
due to slightly higher LME prices combined with higher metals sales. of (73%) of bonds issued by Nexa and its subsidiary
Nexa Peru, of which US$ 700 million matures in 2027.
0.34
0.32
Our adjusted EBITDA was US$ 604.8 million, a decrease of Another 14% refers to loans through international
9.4% over 2017, as a result of higher costs incurred due to banks. Only 1.6% of the debt (equivalent to
revisions in safety processes and mine development initiatives, US$ 23.3 million) expires in 2019.
mainly in Cerro Lindo. The adjusted EBITDA margin was 24.3%
in 2018, down from 27.3% in the previous year. The average maturity of our debt is 6.1 years and
the average cost is 4.8%, mainly due to the impact of
2017 2018
+0.9% Cost of sales amounted to US$ 1,889 million in the 12 months
of the year, an increase of 7.8% compared to 2017. This reflects
these ten-year bond issued in May 2017, with a coupon
of 5.375% p.a. We ended the year with low net debt to
higher costs of the purchase of concentrate by our smelters in the Adjusted EBITDA ratio of 0.50x.
first half of the year. Selling, general and administrative expenses
totaled US$ 159.6 million for the year, 3.3% more than in 2017. 2016 2017 2018
COPPER (US$/t)
Cash flow
Financial results (US$ million)
Net cash provided by operating activities totaled
2018 X Net debt
6,523
2016 2017 2018 2017 US$ 347.6 million. The lower cash generated by
US$ million
6,166
operations in 2018 was driven mainly due to lower

Net revenue 1,964.8 2,449.5 2,491.2 1.7% gross profit.
Cost of
302.7
goods sold 13
(1,504.2) (1,752.8) (1,888.9) 0.7% We used US$ 158.1 million in net cash flow
for investment activities in 2018, mainly due to
225
Selling, general
the higher Capex throughout the year. Net cash
and administrative 218.0 154.5 159.6 3.3%
flow from financing activities during the year was
126
expenses 13
+5.8%
US$ 177.4 million, including the payment of
Sales 14 (25.5) (17.6) (18.7) 0.7% US$ 80 million share premium in March.
2017 2018
General and
Administrative 13
(118.7) (136.9) (140.9) 0.9% Our cash position as of December 31, 2018
was US$ 1.1 billion considering cash & cash
Other operating
LEAD (US$ /t) results 14
(139.7) (47.9) 18.2 N/A equivalents plus financial investments.
Depreciation,
amortization 275.0 270.5 267.2 (1.2)
and depletion
2,317
2016 2017 2018

2,242
Adjusted EBITDA 403.9 667.5 604.8 (9.4%)

EBITDA
Margin (Adjusted 20.6% 27.3% 24.3% -297bp
EBITDA/NR)
13
Data published in 2017 has been revised.
14
Data published in 2016 and 2017 have been revised GRI 102-48
2017 2018
-3.2%

the
People
way
US$ Investments
GRI 103-2, 103-3
299.7
Our investments aligned with the strategic earmarking (Capex) totaled
US$ 299.7 million in 2018. The expansion-related portion mainly consisted Our company has been following a
of deepening the Vazante mine (US$ 47 million) and the tailings dry stack consistent path of brand consolidation
To believe it is possible
million implementation in the same unit (US$ 20 million). and building a strong and integrated Intelligence to do things differently
culture, capable of guiding the
of Capex investment, Capex was US$ 40 million higher than expected as we accelerated some organization’s people as they grow their
investments at the end of the year (approximately US$ 8 million related to the achievements and face new challenges. ■■ To first act safely
52% more than Magistral greenfield project and approximately US$ 7 million related to Vazante). Intelligence, enthusiasm and courage are ■■ To be a transformation agent
previous year We also accounted for US$ 14 million of operating expenses related to the the characteristics that make up what we ■■ To seek the best references inside and outside the company
integration of the El Porvenir and Atacocha mines that were reclassified to Capex, call our brand personality. The launch of ■■ To be continuously focused on the search for knowledge,
in addition to terms incurred in higher maintenance Capex in Cerro Lindo, due to the Nexa brand strengthened the development and excellence
mine development initiatives. company’s repositioning in the market ■■ To be a protagonist: to have a good understanding of the
and society as a company focused on the company and to seek information, to follow the news through
In addition to investments in Vazante, we completed the FEL3 phase and started construction of the next generation of the internal and external channels
the Aripuanã project in Brazil (US$ 19 million), and invested US$ 14 million in the mining and the generation of shared ■■ To understand the industry and the trends
conversion of the Cajamarquilla smelting process to jarosite to boost zinc recovery at value. We also initiated a process of
the unit. cultural transformation aligned with this
position and our business strategy. To provoke to make it possible
In 2019, we will increase our Capex compared to 2018, mainly due to the initial Enthusiasm to do things differently
investment in the Aripuanã project, our most advanced greenfield project. We The brand has been projected for
received the Aripuanã Installation License on December 20th 2018 and immediately the future and positions us as a mining
began investments into the construction. We estimate that in 2019 approximately company that features expertise and ■■ Do not settle for the same ways of doing things, face different
35% (or US$ 140 million) will be spent on the estimated overall US$ 392 million in thinks differently; as a company that challenges
investments for this project. provokes new ways of doing things and ■■ Provoke yourself and those around you to escape your
has the courage to prove it is possible comfort zones
Capex investments (US$ thousand) take new paths, transforming and ■■ Stimulate and contribute so that the entire mining chain
influencing society, bringing the world thinks differently
2016 2017 2018
of mining to the world of people. These ■■ Be energetic and contagious, helping to bring about the
Expansion 41,421 48,825 90,506 three characteristics, based on necessary transformations
Votorantim’s DNA and translated into
Modernization 19,624 21,363 14,990 behaviors, also form the Nexa Way,
which guides the day-to-day actions of
Sustaining 54,054 59,439 90,250
our employees, leaders and teams. Courage To help provoke change
to do things differently
HSE 58,504 62,060 89,051
This is also our way of managing
Others 9,387 5,905 14,921 ■■ Propose new ideas and paths to overcome the company’s
people within our organization. All
TOTAL 182,886 197,638 299,713 initiatives are underpinned by five challenges
strategic focal points: inspiring leadership ■■ Listen to suggestions and be open to change when necessary.
and effective management of talents, ■■ Take well-grounded positions with conviction, both within and
Stock buyback assured critical capabilities, contributing outside the company
to increased company productivity and ■■ Ask questions and dive deep to expand understanding and
During 2018, we repurchased 112,388 common shares at an average competitiveness, effective governance bring about evolution
price of US$ 12.00 per share for a total of US$ 1,350 million. The and organization, and effective ■■ Make the best decisions, in a timely manner, with the best
repurchased shares represent 0.24% of the free float of common shares stakeholder relations. information available
outstanding before the launch of the program. Under the program approved
by the Board of Directors on September 20, 2018, Nexa may repurchase,
directly or indirectly (through its subsidiaries), up to US$ 30 million of its
outstanding shares during the 12-month period. The repurchased shares
will not be canceled, but will be held in Treasury.

Qualification and training
GRI 103-2, 103-3, 404-2 SDG 4.4
We are a company that attracts, trains and retains

talent. That is why we encourage employees to develop
themselves professionally, by offering training and
qualification programs, sharing ideas and experiences
and continuing to challenge them in an inspiring work
environment that nurtures safety and diversity.
We use the Personnel Development System to ensure

that 100% of our employees can discuss, together with
their managers, the skills and attributes they need to evolve
within the company. It is a personnel management model
that encourages open dialogue, transparency and career
development possibilities, strengthening our strategies and
stimulating professional growth. GRI 404-3
Employee profile
We promote the constant development of leaders, as
We value a diverse profile of employees. Due to the nature of our operations, especially in Peru, we have a large well as providing our team with technical skills. Among the
contingent of outsourced labor. In 2018, our staff comprised 5,591 direct employees, of which 3,198 were in Brazil, programs offered we can mention:
2,367 in Peru and 26 in other countries, in addition to 13,408 outsourced workers. Of the total number of employees,
64% belonged to the 30-50-year-old age group; 67% performed operational functions, and the proportion of women Mentoring: The program stimulates the exchange
was 11.7%. of knowledge and the structured orientation among
professionals of different hierarchical levels. Hence, we
promote open dialogue and the cultivation of talents, in
addition to bolstering relations between different areas,
Total Number of Employees GRI 102-8 Employees by age GRI 405-1
expanding networking and multiplying experiences.
Over the four years this program has been running,
70 professionals were mentored. Furthermore, 18 new
16%
mentors were prepared in 2018 to take up this challenge.
Cultivating Leaderships (Cultivando Lideranças):

We continued the Cultivating Leadership Program globally,
which aims to align our leaders with the company’s overall
20%
context, strengthening their knowledge and developing
Over 50 years the skills needed to better play a part the development of
13,408
6,941
7,367
30 to 50 years people. Since the beginning of the program, more than 700
64%
Under 30 years
leaders have been trained in Brazil, Peru and Luxembourg.
One of the program’s modules involved the development

of inspiring leadership, which hires, develops and engages
Employees by Category/ talents, ensuring high-performance teams. This pillar was
Function GRI 405-1
developed in a more relaxed format that aims to exchange
knowledge and promote collaboration among employees.
19.7%
5,446
5,387
5,591
CEO / President
10.7%
Manager/General Manager
Coordinator / Consultant
Outsourced employees 2.6%
0.2% Technician/Analist/Supervisor
company employees
2016 2017 2018 Operational
66.8%

Average Hours of Training
Per Employee GRI 404-1
Women
30
26
22
2016 2017 2018
+Talents (+Talentos): Created in 2017, the program evaluate the level of knowledge of automotive
focuses on hiring people and developing individuals who maintenance employees, which will guide the training
have greater expertise in specific areas. The idea is to train efforts in this area, beginning with technical training Men
talented people so that in the future the area can count in lubrication.
46
40
40
on more human resources available for its succession pool.
The focus point of the program in 2018 was Health, During the year, we offered more than 200 thousand
Safety and the Environment (HSE) and the first formation hours of training and qualification to our employees
session took place between September 10 and 14. (Details in Brazil and Peru, with an average of 31 hours per
are in the Safety and Health chapter). employee and investments of more than US$ 2 million,
maintaining almost the same amount that had been
The Nexa Way Experience: This initiative was aimed invested in 2017 for this purpose.
at enabling employees to experience, in practice, the
adoption of the Nexa Way. In 2018, a pilot program To develop a strategic focus, “assured critical
was created that opened the entire organization to capabilities,” our Master Plan contains 11 critical
the opportunity to participate in a challenge focused capabilities that ensure business continuity. In 2018,
on combating unnecessary bureaucracy, working in an assessment was carried out to evaluate the maturity
a different format with an autonomous group, self- of each one. It was identified that for the five that were
managing and based on agile methodologies concepts. prioritized in the last two years - talent management,
Of the 28 employees who signed up, seven were selected operational excellence, mineral exploration, capital
to continue in the project. The proposal presented was sourcing and execution of projects - at least 75% 2016 2017 2018
the creation of an in-company accelerator, named Atom, had reached maturity. As a next step, we will update
whose activities will be developed over the course the master plan, aiming at the need to develop
of 2019. new capabilities and their continued development
For technical qualification, of particular note was

in the organization.
200 thousand
the acquisition of a structure (container) for training hours of training
heavy equipment operators (LHD, scaler, drilling). In
2018, the initiative leased a Jumbo simulator for the
Vazante and Morro Agudo units; acquired a simulator More than
for driving A30 trucks in Vazante; made a diagnosis to
US$ 2 million
invested

Material topic
People roles, raising the awareness of their talent and ensuring that Recognition program
leaders consistently demonstrate that diversity and gender (Programa de reconhecimento)
6. STIMULATE
GRI 103-2, 103-3 SDG 5.1, 5.5, 5.C, 8.5, 10.2
equality are essential elements in strengthening a company.
Designed to increasingly improve the value of the
We have achieved this by employing women in positions engagement and participation of our employees and third
considered “unconventional” for the gender, which promotes parties, we now recognize the best initiatives developed on
a more wide-ranging and inclusive vision in the teams. four fronts: Health and Safety, Environment, Operational
Excellence and Social Responsibility. In 2018, there were
We have also recorded advances in the inclusion of over 200 initiatives registered in the Program, with 12 chosen
people with disabilities, leading an electronic learning group to participate in the final stage, three in each category.
for young people with intellectual disabilities in partnership
with the Industrial Learning Service (Senai) and the The four most innovative initiatives were recognized.
Association of Parents and Friends of the Disabled (Apae),
at the Morro Agudo Unit. The program offers professional ■■ In the category of Safety and Health, the winner was
training of persons with disabilities, guaranteeing autonomy, the “Perception of Risk - Strengthening the Commitment
protagonism and their inclusion in the labor market. It is to Life” project from Três Marias, which proposes actions
based upon a unique methodology and courses are lively, to establish a strong and genuine culture focused on
featuring practical exercises and memorization activities. accident prevention, caring for people and commitment
Some 26 students were trained during the year. SDG 4.5 to life.
Organizational climate survey ■■ In Social Responsibility, the highlight was “Alternative
Cultivation” from Cajamarquilla, a pilot project to produce
As a result of initiatives to strengthen an environment where vegetables rich in nutritional content in recycled PET
everyone can develop their potential fully and without barriers, bottles, using a hydroponics technique, with the aim
we received an excellent score in the biennial climate survey. of enriching the local community’s nutrition and
Diversity With 93% employee participation, our favorability index rose fighting anemia.
from 72% in the last survey to 77% in the current edition. This
Target 2016 2017 201815 Form of measurement
places us again within the top first quartile of our industry, even ■■ In the Environment, Cerro Lindo won with the “Plastic
though it was a period of transition, in which we went through a Waste” project, which creates an environmental culture
process of integration between the companies and the involving employees and communities promoting plastic
Reaching 20% of women throughout
Total women/ consolidation of the IPO. waste recycling.
Nexa Resources by 2025 10.2% 10.5% 11.7%
Total employees
Base Year: 2014
The leadership and development item had the highest ■■ In the Operational Excellence category, the winner
favorability rate, which shows that we are moving in the right was the “Quality as Value” project from Juiz de Fora.
direction to develop and retain our staff talents. This comprises actions aimed at ensuring the
15
As of 2018, we began to consider Nexa Resources S.A. (Luxembourg) and Votorantim US, Inc. (U.S.) in the calculation of the target. satisfaction of internal and external market clients
The good relations with employees also was recognized and rework reductions.
externally. Our company was chosen in two of the nine
categories in the Good Labor Practices competition organized The top committees in the year were also chosen -
Since 2015, when the percentage of female employees The main function of the committee is to foster by the Ministry of Labor and Employment Promotion in Peru. It Lima Corporate and the Três Marias Unit - based on an
was 9.3%, our focus has been on maintaining an active initiatives and support the achievement of specific goals for ranked second in the “Promotion of equal opportunities for men evaluation that took into account the mix of actions and
Diversity Committee, encouraging the increase of this different diversity issues, such as reaching 20% of women in and women” category, with its Diversity Committee case study the coefficient of hours dedicated to voluntary actions,
percentage through initiatives in which the entire company the workforce by 2025. We want to create a diverse and for the “Promotion of organized work with local suppliers of as well as the planning and recurrence of actions and the
participates. environment of harmonious coexistence that is a reflection Peru,” through its Communal Companies Management project. level of engagement of the unit. The volunteers who inspired
of society. For instance, we hope that our organization will each unit were chosen for their dedication and work and
The governance of the Committee, revised in 2018, was have a representative number of women, people of different encouragement of the collective spirit. (Other results from
even more robust, featuring the Strategic Committee, the ethnicities and employees with disabilities. the We Are Everyone volunteer program can be found
Corporate Committee and nine Local Committees, whose in the Local Development chapter on page 92).
purpose is to coordinate the implementation of a number of Female inclusion is a very important issue for us, given
actions aimed at uniformly and constantly promoting that the mining sector is mainly led by men. Our mission is
diversity in all our units. to contribute to change this reality. We are promoting
women’s participation in both leadership and operational

INTEGRATION - MAIN ACTIONS IN 2018
Safety Plan Wage and benefits Values and Beliefs
■■ Implementation of the Program for the Prevention ■■ Review of remuneration and benefits strategy ■■ Strengthening Nexa’s beliefs and culture
of Fatalities and the Contract Cells ■■ Equalization of benefits practices in Nexa’s various ■■ Global Votorantim Development System (VDS)
■■ Improvements in food, water, dormitory and countries according to the local market ■■ Cross Culture Program
sanitary services ■■ Employee participation in the Cultivating
■■ Training of outsourced workers through risk Information and communication Leaderships Program
perception modules
■■ Implementation of virtual rooms facilitating Talent Management
Dissemination of the strategy communication between units
■■ Improving internet performance in the Peru and ■■ Redefining the system for the Recruitment and
■■ trengthening the communication of Nexa’s
S Luxembourg units Selection Process and mobility programs
Strategy for all audiences ■■ Integration of career path processes
■■ Inclusion of the strategy theme in the institutional video Communication Management
Governance
Formalization of practices ■■ Reformulation and creation of communication channels
■■ Implementation of the brand in the units ■■ Review and integration of the Committees -
■■ tandardizing of Procurement and Logistics,
S ■■ Strengthening Culture and Histories Remuneration, Audit, Finance - and policy making
Engineering, Mineral Exploitation, Technology, ■■ Dialogue with the CEO Events
Financial, Legal, Commercial, Information ■■ Integra Newsletter
Technology policies and procedures
■■ Integration of the access profiles and equalization Organizational structure
of the approvals website
■■ Mining and Smelter Topic teams ■■ Integration of the corporate organizational structures
■■ Diagnosis of the GS structure (Salary Group) of the
Global Integration Plan (Integra Program) corporate areas
■■ Strong IT Project: SAP Structure Diagnosis and
Created to ensure that we are a strong mining company Adjustment Proposal
and an international benchmark, the program reinforces a
global perspective in which local values are respected in the
quest for a high performance culture. The plan was structured
and put into practice with actions and projects in four pillars:
Structure, People, Processes and Systems, designed to absorb
the best practices in each country and to strengthen the through application of a single visual language across the Personnel management challenges
concept of a unique and global company. Ten action fronts company. As a result, we completed 90% of the actions
were developed, with priorities being Health and Safety, Talent contemplated in the Integration Plan. Among the challenges faced in the year was the timetable. We also are working toward offering better
Management, Organizational Structure, Standardization of implementation of a fourth work shift in Vazante, designed infrastructure, such as living conditions, education and
Practices and Communication Management. One of the highlights was the implementation of the to boost mine productivity. To meet this demand, it was hospital care, among others.
Program for the Prevention of Fatalities and Contract Cells necessary to hire 56 employees and train them in a short
We maintained an integration group coordinated by the (Programa de Prevenção de Fatalidades e das Células de period of time so that they were able to assume their job In addition, in Peru, there were two strikes: one lasting
Management and HR areas, supported by the focal points in Contrato), improving workplace safety aspects, an irreversible duties. That done, we were able to raise the production five days in March in Cajamarquilla; and another for seven
each department, which act as the multipliers for each area. subject regarding our operations. We have also, with regard time in the mine from 15.2 to 19.2 hours per day. days in November, in Cerro Lindo. Both were considered
The project’s main target is to build an integrated company to personnel management, been able to equalize recruitment unfounded by the local labor authority and had no impact
based on its unique vision and governance, where everyone and selection practices at all levels, to have a global coverage Once the Aripuanã implementation license is obtained, on production. In El Porvenir, there were smaller work
feels they are part of the same family unit regardless of of the talent development programs, in addition to the global the personnel management area also is tasked with stoppage actions, of four days in January and two days in
which unit to which they are assigned, where they all uphold standardization of the internal communication model. The guaranteeing the readiness of the workforce for the start of September. Both were also considered groundless and did
the same standards whenever possible and develop installation of virtual rooms and the improvement of internet the operation, scheduled for 2021. To do so, we prepared a not impact production.
custom-made processes when necessary. performance in the units facilitated information exchanges. strategic plan to define how many new employees can be
And to maximize the swapping of experiences and adoption hired locally, how many need to be brought in from other
In 2018, we conducted important actions on each of of best practices, we continued to run exchange programs, regions, what training will be offered and what will be the
the work fronts, which contributed to the integration of with a total of 60 employees participating over two years.
macro-processes and communication, now reinforced

Material topic
Safety and health The leaders assist in maintaining employees’
perceptions of the hazards of their work environment
GRI 103-2, 103-3 SDG 16.1 1. RESPECT
through the Daily Safety Dialogues (DSD) and managerial
inspections (processes reviewed in 2018) in operational
areas and through other management safety tools.
The risks of the activities are surveyed and control

measures are implemented, which may be engineering (such
as the need to install physical barriers), procedural (written
standards, work rules that guarantee safety) or related to
personal or collective protection equipment. For outsourced
workers, the survey is conducted in conjunction with the
outsourced companies’ managers and safety teams. GRI 403-2
Performance Indicators
As a result of the actions undertaken, no fatalities

were registered, we stabilized both our accident frequency
rates (with and without lost time) and enhanced our
performance vis-à-vis the atypical year of 2017.
Our Accident Frequency Rate (AFR) was 2.23,

covering accidents with and without lost time involving
our own and outsourced employees, compared to 2.46
in 2017. The Accident Severity Rate (ASR) was 77,
Safety a significant improvement over the mark of 1,384
recorded in the previous year.
Target16 2016 2017 2018 Form of measurement
Record an accident frequency rate with

Number of
or without lost time equal to or less
accidents with and
than the first quartile companies (best
2.25 2.46 2.23 without lost time x Accident
25%) benchmark of the mining and
1,000,000/man Frequency Rate GRI 403-9
metallurgy sector, by 2025.
hours worked
Base Year: 2014
16
The target “Safe Behavior Index (SBI) greater than 90% for all units and subsidiaries Base Year: 2014” was withdrawn and excluded. GRI 102-48
In 2018, we adopted the Nexa Internal Rate indicator,
2.23
2.46
which combines the results of the Accident Frequency
2.25
Rate (AFR) and the Severity Rate (ASR). This indicator
Safety is our greatest asset. That is why we spare no The safety targets in 2018 were designed to offers a complete snapshot of our safety performance.
effort to guarantee the safety of our employees, whether eliminate fatalities, reduce the severity and number The indicator makes it possible to recognize the units
our own or outsourced. We aspire to strengthen a safety of accidents and raise the safety culture standards and businesses that are aligned with our safety objectives
culture each and every day, one that does not tolerate at all of our units, especially Peru’s operations. as we work to improve results in terms of the frequency
non-compliance, is not silent in correcting risk behaviors, and severity of accidents.
is in step with the planning of activities, ensures the We have a strong leadership team engaged in all
1.01
1.15
0.73
implementation of risk controls, encourages the reporting aspects of safety, with weekly scheduled encounters This safety indicator also is one of the items that
of unsafe conditions and assures that they are corrected, to deal with issues related to the subject and meetings make up the variable compensation calculation for
and also deliberates in advance about the dangers and on Mondays with the CEO. The meetings of the Board operational managers and professionals, the CEO and
risks that the activities represent. SDG 8.8 of Directors also set aside time slots for discussions all executive directors, general managers and corporate
of safety-related matters, with a quarterly evaluation 2016 2017 2018 area managers. In addition, in case of fatalities, sanctions
of the indicators and planning options developed for are applied to the executives in the form of reduction
the following quarter. of points to reach the annual goal.
With and without lost time
With lost time

Safety initiatives GRI 403-5 SDG 16.1
To extend everyone’s commitment to a safer operation, the Occupational Health and Safety and Communications and Over the past few years, we have continued to implement and enforce the Golden Rules, which consist
Institutional Relations areas launched a special program: “Do it for yourself; do it for your colleagues; do it for those who are of 12 safety maxims that must never be broken, such as seatbelt use, restrictions on cell phone use and
waiting for you at home.” The project is aimed at both our own and outsourced employees. It seeks to stimulate a sense of prohibition of working under the influence of alcohol and drugs. These standards are key components
pro-activism by each employee as a change agent for doing what is right, pursuant to the necessary controls and of our safety processes.
recommended procedures (do it for you); to generate a culture for collective accident prevention and mutual protection of
colleagues (do it for your colleagues); and to make employees aware of the importance of those with whom you live (do it for
the ones who are waiting for you at home). Golden rules SDG 3.5, 3.9, 8.8
One of the actions was a photo contest, to amusingly reinforce the importance of family, a motivational activity for putting We have adopted 12 golden rules to ensure the safety of our own and outsourced
safe behavior into practice in our organization. employees, which are based on critical risk standards and other company safety
management tools. Failure to comply with any rule may lead to a warning, suspension
or even dismissal. The identification of non-compliance with a rule goes through a
structured process, with evidence gathering, evaluation and penalty, if applicable.
“When I arrive at work, I leave

behind worries, sorrows and
problems. Because the support 1. Work at heights requires a fall prevention system and anchoring point
of my family depends on good
care and protection in the 2. Blocking and isolation of power supply for maintenance and cleaning
work area.“ (Juan Vilcamiza - of machines
Cerro Lindo, participant in the
photo competition) 3. Confined space work performed only by trained and authorized
professionals
4. Obligation to use a safety belt for the operation of light vehicles and
mobile equipment. Prohibition of cell phone use while driving and
respect of speed limits
5. Prohibiting the use of alcohol and drugs on the premises or

“For us safety is a habit: when working
at work, on the road and
at home. When safety 6. Necessary formal inspection that proves the absence of loose
becomes a value, even rocks for entry into mining and development work fronts
the games are safe!”
(Felipe Arce - São Paulo Office, 7. Suspended loads must be inspected, in compliance and released in
photo contest participant) accordance with the indicated procedures, and the operating area
must be isolated or alarm sounded
8. Machine protection can be removed only when equipment is blocked

and in a zero energized state
9. Dangerous chemical substances may be handled only with the use

“This photo represents how of PPEs
happy it makes me that my
grandparents are still alive, who 10. Every accident must be reported irrespective of its severity
are just like my parents. Every
time I see them and know they 11. Work authorization is required for activities involving critical
await at home for the moment I safety hazards
arrive, it makes me think that
working safely is the top thing 12. A prior formal risk assessment must be conducted prior to
because I want to keep watching performing any activity
out for it for many years.”
(Karina Ramirez - Lima Office,
photo contest participant)

Preventing fatalities (Prevenção de Fatalidades) Each member has an individual project to develop,
defined by the HSE team and related to improvements
Launched in June 2018, the program aims to: in the area or in the unit. Each professional involved will
be monitored on a regular basis by a local or corporate
■■ Establish a continuous process of identification, mentor to support him or her in the development process.
control and management of hazards and risks with Furthermore, there is a project for a broader topic related
high probability of causing fatalities in operations to area’s strategy and business to be fulfilled collectively.
■■ evelop and maintain the commitment of all leaders for

D Outsourced employees’ safety GRI 403-7
the implementation of the fatality prevention program

We make every effort so ensure that outsourced
■■ Engage all workers in the fatality prevention process companies implement the same safety culture as practiced
by our own employees. Hence, we introduce actions in this
■■ nsure unrestricted compliance with the golden rules
E regard for the selection and hiring of the strategic partners
and critical controls through to the training of operating professionals and the
leadership group for these companies, their activities
risk and consequences management programs and the
recognition process for companies and professionals
Each unit has set up a committee to oversee the that best meet our standards.
program, chaired by the general manager. It is responsible
for providing strategic direction and promoting visible In the Peruvian units, 75% of the workforce is
engagement at all managing levels, assigning fatality comprised of outsourced workers. One of the strengths of
prevention responsibilities, discussing the indicators in safety management in Peru is the strong sense of hierarchy
Peru Safety Plan Safe Behavior Program its meetings with leaders and providing resources needed and respect for the managers, which has contributed to the
(Programa Comportamento Seguro) to resolve situations identified in the program. success of leadership training conducted in mining units.
Throughout 2018, we advanced and improved the In 2018, two training sessions were conducted toward this
Peru Safety Plan, which is 80% implemented. It consists Employees help each other through a network for The general manager is assisted by the program’s end, which already have delivered good results: one focused
of eight pillars, 30 projects, 244 initiatives and directly observation and feedback meetings regarding group guardian, who is responsible for overall coordination and on the leader’s role and the other on risk management in
involved 86 persons. The pillars are as follows: Leadership behavior. All of them also receive training focused on keeping records up to date and available for the team; the operation.
training and awareness; Strengthening of the occupational safety awareness in the workplace environment. leadership involvement in nominating representatives
health and safety team structure; Implementation of the and promoting training in the area; and support from We also implement more stringent consequences
Outsourcing Management Program (Programa Gestão de Strengthening Alliances (Fortalecendo Alianças) the HSE team for classification and systematization of management actions, which consist of regular inspections
Terceiros); Improvement of wellness and work regime the identified fatality risks. By the end of the year, the and constant observations from the field managers. Upon
conditions in the units; Standardization of processes and The program is designed to establish a clear booklets produced on the theme had been distributed identifying inappropriate and unsafe behavior, we impose
procedures and improvements in Peru’s mining units commitment to what is expected of each individual to both employees and outsourced workers. fines and may even suspend outsourced companies that
contingency plans. Team training and awareness; Synergy regarding safety, creating a cycle of evaluation from the do not meet the safety standards.
with Digital Mining’s actions measures, focusing on Safety; established agreements. It calls for the eradication of HSE More Talent (Mais Talento SSMA)
Industrial Automation Master Plan (PDAI), to support risk permissiveness, a change of posture, greater team There are more than 20 safety initiatives underway
mitigation. For 2019, actions are planned related to knowledge, closer proximity between leaders and the The program was created to select and develop as part of the Outsourcing Management Program, such as
infrastructure and technology. led, enhanced monitoring of field activities. people with the potential to make the succession process control of access to our facilities and the plant integration
stronger in the company’s main areas. Implementing the process, with training that aims to standardize individual
Through individual approaches, the behaviors More Talent program, which mainly involves our health, and collective procedures.
observed and addressed by leaders are registered, safety and environment professionals, demonstrates
formalizing information for the future evaluation cycle its importance to us. To align consequences management expectations, we
80%
and consequences management. The Daily Safety organized a meeting in Lima with the owners and managers
Dialogues are used to develop leadership and share It is Corporate HSE’s responsibility to define the technical of outsourced companies for a frank dialogue about how
knowledge. training agenda as well as certify its implementation over the to make operations safer. It was an important time both to
of the plan implemented course of the program. The unit’s HSE area is responsible for learn about these companies’ problems and to understand
assuring its professional management and for monitoring its their realities, and to share our concerns about safety.
execution, engaging and ensuring that the strategy is actually
put into practice. The local HR is in charge of the selection,
admission and monitoring of the professionals, and also is
the focal point for doubts, career conversations and overall
alignment. The design and structuring of the program is by
HR Corporate A&D (Attraction and Development).

Material topic
Safety and health In Pasco, the actions included the construction of
the central kitchen at El Porvenir, refurbishment of the
GRI 103-2, 103-3 SDG 3.4, 3.5, 3.9, 8.8, 16.7 1. RESPECT
refectory, hiring of a nutritionist responsible for orienting
employees regarding healthy eating habits, remodeling
and adaptation of housing and hygiene service structures
(bathrooms, toilets and locker rooms). For Cerro Lindo,
the actions included renovation and expansion of housing,
adequate hygiene services, installation of workout gyms
and leisure areas in all accommodation areas and revamping
of common areas. Also notable was the cleanup campaign
at Cajamarquilla, which sought to prevent metabolic
syndrome and promote healthy habits of employees; the
program was a finalist in the 2018 Recognition Program.
We continue to strengthen the shared Occupational

Health and Hygiene model to ensure correct management
of the potential risks of occupational diseases. With this, we The program’s governance is through the Corporate
seek to boost the effectiveness of our actions, with a focus Quality of Life Committee, composed of Health and
on risk mitigation, shared knowledge and responsibilities Safety, DHO, Corporate Communication and unit
about preventive methods and practices for all employees. representatives, selected by each local committee. The
In 2018, we also conducted an in-house assessment of corporate committee defines the guidelines and actions
occupational health and hygiene processes in all units, that must be implemented in all units. The local quality
aiming to achieve legal and technical compliance and of life committees are responsible for implementing the
alignment with the Corporate Occupational Health and corporate and local actions according to the demands of
Hygiene policy. The result was a plan with local and the plants and contribute to the preparation of a plan that
Occupational health corporate actions for the improvement process. GRI 403-3 has been adapted to the different realities. GRI 403-4 SDG 16.7
Target 2018 Form of measurement

In 2019, our objective is to establish indicators
Implement health promotion actions in to evaluate the effectiveness of the actions, as well
50% of the local communities where Nexa Percentage of annual implementation as implementation of actions in the physical pillar in
10%
is located, by 2025. of the activities in the units. the communities.
Base year 2018
Living better results Housing Plan SDG 8.8
The main highlight in the period was the

70% units demonstrated improvement implementation of the Housing Plan, involving an
in employees’ lifestyles investment of US$ 1.76 million and an estimated budget
In addition to providing adequate working conditions for Independence and Spirituality. In 2018, all units implemented of US$ 9.6 million for 2019. After visiting all the mining
its employees and others, we believe that an organization actions to stimulate healthy eating, the practice of physical 50% units presented a reduction in the units in Peru, the corporate HSO team conducted a
must provide an environment where people can perform activities and improvement of the working environment, with percentage of obese employees diagnosis of housing conditions, food services (kitchens,
their professional activities with quality and balance in all high employee acceptance levels. The actions were designed restaurants and cafeterias) and hygiene (toilets, toilets,
aspects of their life. The main objective of wellness and according to the reality and needs of the organization and 70% units saw improvement in the quality locker rooms and laundries) for the workers in the units.
quality of life actions is to encourage healthy habits, improve divided into two types of initiatives: institutional and local. of employees’ diets The outcome was a plan containing short-, medium-
the organizational climate, promote the attraction and Institutional actions are those employed in all units, while and long-term implementation actions to improve the
retention of our teams and influence creativity, while also local actions are related to the specific demands and needs 40% units presented a decrease in the quality of life, well-being and comfort of our own and
guaranteeing operational continuity and productivity. To of each unit. GRI 403-6 SDG 3.4 percentage of sedentary lifestyles outsourced employees. Once the most basic and
achieve this, we seek to be recognized as a quality workplace urgent problems were solved, other adjustments were
benchmark company. As examples of actions, we have the The One Who 40% units presented a decrease in the scheduled, including the expansion and construction of
Loses Wins (Quem Perde Ganha), Vazante, and Reto a number of smokers new housing, which began in 2018 and is expected to be
With this in mind, we consolidated the Better Living la Balanza (Directly to the Scale), in Cajamarquilla, which completed by 2020. The Brazilian units, which are more
Program (Programa Viver Melhor), established in 2017 and were set up to encourage adoption of a healthy lifestyle. advanced in this matter, will be the target in the future
based on the World Health Organization’s Quality of Life At the Pasco and Cerro Lindo Complex, we kicked off the of a survey regarding habitability conditions.
(WHOQOL) plan. Six pillars support the program: Physical, Habitability Plan, focusing on the comfort, wellness and
Psychological, Environment, Interpersonal Relations, quality of life of our own and outsourced employees.

Environmental Material topic
investment (Capex) GRI 103-2
Environment Waste
1%
6% Management model GRI 103-2, 103-3 SDG 11.6
GRI 103-1, 103-2, 103-3 SDG 9.4, 12.4, 12.5 7. ASSUME 8. DEVELOP 9. PROMOTE
9%
We value responsible action, preventing impacts to the environment and
48%
the conscientious use of natural resources. We want to be eco-efficient: that
14% is, to produce more and produce it better, using fewer resources and generating
less waste. We seek the best environmental performance possible, whether
in our administrative centers, mines or smelters. Our environmental goals are:
■■ 75% of recirculation and lower specific use of water;

22%
■■ Reduce the specific emission of greenhouse gases by 5%;
Environmental management
■■ ecrease the disposal of tailings in dams and reduce, by 50%, the specific
D
generation of mining and smelting waste;
Treatment of liquid effluents
Environmental protection
■■ nsure that 100% of the units have prepared a future-use alternative
E
Other environmental expenses
study and an updated decommissioning plan, in line with the sector’s
ecommissioning/Recovery of
D benchmarks.
contaminated areas (soil and water)
Waste treatment
We use a combined management system based on an Integrated Policy
that establishes the guidelines that govern the conduct of the businesses,
with a focus on quality management of environmental, health and workplace
safety and social responsibility matters. In addition, we strictly respect all
environmental laws and regulations pertaining to our business in each country
Environmental Spending where we operate. SDG 13.2
(Capex e Opex) GRI 103-2 Target 2016 201717 2018 Form of measurement
All of our operating units are ISO 14001 certified and, thus, follow globally Reduce 50% of the specific
5% recognized systems and compliance standards that support the effort to meet quantity of mining-smelting waste
7% Total wastes generated and disposed
our targets. Annually, each unit undergoes an assessment of compliance with generated (calculated by the tonne
34% of (dams, tailings deposits, mine
8% legislation and environmental commitments, conducted by outside specialists. of generated waste/tonne of 8.78 10.07 10.59
interiors, batteries, etc.) per tonne
In a two-year cycle, the Unit’s Environmental Management System is audited product) and/or sent to landfills
of product.
internally and a self-assessment is conducted each year to identify Base Year: 2014
improvement opportunities. GRI 102-11
13%
Environmental investments SDG 7.A Reduce total specific waste generation Total waste generated
(tonne waste/tonne of product) 8.80 10.34 10.61 (mining-smelting + industrial)
We invested in diverse programs that address climate change actions Base Year: 2014 per tonne of product
19% 14% to reduce carbon emissions, lower energy consumption and optimize water
use. We sought opportunities to be more eco-efficient, betting on innovative
Environmental management projects (see more about Innovation on page 39), which led to improvements in 17
2017 data recalculated as a result of adjustments in calculation form GRI 102-48
Environmental protection
equipment and processes and delivered significant environmental gains.
Atmospheric emissions treatment
In 2018, investments in the environment totaled US$ 95.1 million, Aware of our responsibility for solid waste generation impacts, we go beyond the regulatory requirements, investing in
Other environmental expenses
54.5% higher than in 2017. Of this total, 34% was for waste disposal, research and development of new technologies that allow us to reduce the amount of waste generated or turn them into
Treatment of liquid effluents
14% went toward effluent treatments and 7% was earmarked for secondary products for use in other industries.
ecommissioning/Recovery of
D environmental prevention.
contaminated areas (soil and water)
One of the focal points of the research in the year was the project to recover barite as a residue from the zinc mining
Waste treatment
process in Cerro Lindo. Tests carried out in 2018 resulted in the production of high purity and density barite; we are now
planning to build a processing plant in 2019 (more information in the Innovation and Technology chapter).

We positioned our Juiz de Fora plant as a materials recycler. Battery recycling Management of dams and tailings deposits
Currently, 24% of the production derives from secondary (recycled) SDG 9.4
materials, composed of PAE (19.8%), brass oxide (0.3%), imported The management of dams and tailings deposits is one of the main
Waelz oxide (0.3%), batteries (0.02%) and low-grade silicate (0.44%). About 700 million batteries are risks associated with the mining activity. In order to control and monitor
Our strategic mandate foresees raising this percentage to 33% by 2023 consumed annually in Brazil, which our 46 dams and tailings deposits (22 in Brazil and 24 in Peru), we apply
and 40% by 2025. corresponds to 2,100 tonnes of guidelines from the International Commission on Large Dams.
zinc metal. The incorrect disposal
The Morro Agudo mine’s project for agricultural limestone production of this material is harmful to the Currently, we use three methods of waste disposal in our operations:
was continued, with a 22% increase in the output of Zincal200, created environment and to people’s health dams, dry stacking and return to the mine, filling the spaces from which
from what was previously the residue generated in the beneficiation process and any initiative for recovery of the mineral was withdrawn (backfill). For all methods of control and
for zinc deposit dams. For production of Zincal200, we made modifications materials contained in the batteries monitoring we follow the laws in force in each country where we operate.
in the process, making it possible to produce a zinc-rich agricultural and the correct destination of the
corrective. Thus, in addition to correcting the acidity, our limestone also tailings is welcome. Some operations may combine one or more disposal methods. In the
increases soil productivity thanks to the presence of zinc in the composition. Atacocha, El Porvenir and Cerro Lindo units in Peru, we adopted the
This by-product now represents revenue of US$ 7.4 million (or 12% of unit’s We have received at our unit in Juiz backfill system, whereby 38% of the wastes return to the Pasco Complex
output). But its biggest benefit is the fact that it eliminates the need to de Fora the batteries collected by mines (Atacocha and El Porvenir) and 48.7% to the Cerro Lindo mine, in
build new containment structures, which means both environmental and Green Electron - Manager for which part of the residue is filtered, separating water and solids. The
economic gains. GRI 102-2 Reverse Logistics of Electrical and water is recirculated and the filtered waste is sent to the piles to be
Electronic Equipment, founded in compacted. This same model is being considered in new projects in Brazil
In Vazante, we entered into a partnership with the Edital Senai 2016 by the Brazilian Association (Aripuanã and Caçapava do Sul).
Inovação to transform residual cadmium and lead from the operation of the National Electronics and
into secondary products through leaching, calcination and flotation routes, Electrical Industry (Abinee). We started the filtered tailings disposal project at the Vazante mine,
or through a combination of transformation tracks. The tests are expected which was granted an installation license in 2017. With an investment of
to be completed in the first half of 2019. Our consumption is still restricted, US$ 122 million, by 2020, the unit will use the dry stacking method, which
with treatment of only 1% of the reduces environmental impacts and risks to the operation.
And in the Mining Lab 2 program, we also selected a startup with zinc contained in piles (or 76
the focus on evaluating the potential of smelter tailings conversion into tonnes). However, we have been Dam management is one of the topics included in our business
vitroceramic products. This project is in the initial (bench) phase and will studying ways to extend the use of risk management processes and regularly discussed at executive
be continued throughout 2019. batteries in our production. By meetings, where reports are presented on the stability of these
2019, our goal is to double our structures. We have processes and procedures that form the Integrated
In 2018, our operations generated a total of 19.2 million tonnes of funding to recycle about 200 Dam Management System (SIGBar) and an Integrated Deposits
mining and smelting waste, of which 67.7% was hazardous and 32.3% was tonnes of batteries. The slag from Management System (SIGDep). These two systems are composed of
non-hazardous – an increase of 14.1% over the results of 2017. GRI MM3 the furnace where the pile is 12 modules that establish rules and measures for regular monitoring
processed is destined for the actions, from which we control all the structures. SIGBar sets out
cement industry, closing the guidelines for document management, monitoring, evaluation, risk
recycling cycle. analysis, compliance with standards and legislation, training of
personnel, operation of structures and other provisions.
This work is permanently monitored by an independent company,

Waste volume (thousand tonnes) GRI 306-2, MM3 which receives data from biweekly inspections and monthly consolidates
data from all monitoring operations to issue stability reports. In 2018,
2016 201718 2018 the structures that were inactive were inserted into SIGBar so that we
could carry out the monitoring in an effective and safe way.
Mineral-smelting waste (Sterile) 1,746.99 1,704.91 2,357.12
Hazardous Mineral- smelting waste (Tailings) 9,871.85 9,661.73 10,670.60 In 2019, we plan to install the siren system in all units in Brazil
and Peru. The amount of sirens required in each locality depends on
Industrial wastes 2.90 3.28 3.01
the topography of the site and the self-rescue zone characterized in
Mineral- smelting waste (Sterile) 5,458.25 4,539.25 5,209.27 each facility’s Emergency Response Plan (ERP). After the installation
of the sirens, simulations will be carried out with the local communities.
Non-Hazardous Mineral-metallurgical waste (Tailings) 1,038.24 958.88 1,012.58
Industrial wastes 13.96 16.08 15.57
18
Revised 2017 data due to adjustments in calculation form. GRI 102-48

2
OPERATION, MAINTENANCE
OUR PRIORITY IS TO TURN TAILINGS INTO PRODUCTS. AND SO WE CONSTANTLY STUDY
THE WASTE AND VERIFY ITS CHARACTERISTICS AND POTENTIAL USAGE. AND MONITORING
The safety of the structure also depends on the operating
1 PROJECT A phase. Each structure has an operating manual prepared
MINE SMELTER FINAL PRODUCT Important moment when all the assumptions and the necessary controls are defined and the B by the design company, containing information on the
rupture scenarios are evaluated. The project goes through the conceptual, basic and detailed/ layout of the material inside the dam, controls and data
executive engineering phases. In the conceptual phase, a cross check is performed by an C on main and auxiliary structure maintenance. We maintain
independent company that evaluates the way we are designing the dam from a different point of a regular inspection and monitoring schedule:
view. Then, we model a hypothetical rupture and identify the Self Rescue Zone (SRZ - the area
D
where, in an emergency, the local population must know in advance where the safe refuge points ■■ Field inspections every 15 days;
METHODS OF USE New products
are located to head to them autonomously, since it is understood that there will be no time for a
AND DISPOSAL: and/or reuse ■■ Data collection from the monitoring instruments,
Civil Defense response). at least monthly;
■■ Transmission of the data to an external expert who

Tailing Laboratory Return to the mine interprets our data and issues a monthly report;
(backfill)
■■ Dams visits by a specialist and issuance of stability
report of the structure, twice a year;
Disposal in piles We have 46 dams and dry deposit stacks,
■■ Reports on the dams’ histories are issued annually.
(filtered tailings) 1 with the following configurations:
■■ Upstream –2
2
■■ Downstream –7
■■ Center line – 3
Monitoring and controls
■■ Mixed* – 2 Instruments for monitoring, controlling factors and the
■■ No heightening – 28 level of water in the reservoir and to ensure the stability of
■■ Dry Stacking – 4 the solid residue body
* All three types can be used at the same time
A Inclinometer - Measures through the inclination angles
Disposal and movement of the dam
in dam
B Graduated scale – Instrument with a scale of values to
measure the water level disposed in the dams.
C Piezometer – Measures the pressure and the presence
E of water at a certain depth, either the dam itself or at its
F 3 foundation.
I II III
D Surface markings – They serve to monitor the vertical
and horizontal displacements of the dam, from a point
reference adopted from precise topographical
G
CONSTRUCTION measurements.
A dam’s construction can be planned in a single stage (initial E Emergency siren - Alert the community in case of
H barrier), or in phases (heightening), occurring in three ways: emergency
F Ring chanel – External drainage so that adjacent water

I pstream: the heightening is carried out on top of the tailings
U does not enter the dam’s area.
and the axis of the dam is moved upstream of the initial axis
G Spillway system – Concrete or channel structure
II excavated in soil, coated or not, where excess water from
Downstream: heightening moves to the downstream initial axis
the reservoir is discharged into the natural drainage areas.
III C H Beach of the dam - Topographic landmark,

enter line: the heightening is built above the initial barrier, Seismograph, Visual inspection (Cracks, vegetation, etc.)
maintaining the axis aligned with the initial axis.
To determine the best way to conduct the heightening process, 3 DECOMMISSIONING

we use the recommendations of international guidelines such as
the International Large Dam Commission (ICOLD), the Canadian Dam All our units have prepared future use studies of the directly
Association (CDA) and legal requirements. We believe that quality impacted areas, based on risk criteria. Dam closures are
control and construction supervision should be priorities throughout determined based on these studies. The structure is
the construction work, to ensure that it is completed according to the
deactivated when it reaches the limit of its useful life and
project design requirements.
undergoes the decommissioning process. Even after this
step, we continue the monitoring process according to the
specific control needs.
Material topic
Water Water is an issue of fundamental importance Water management |GRI 303-2|
in the global context and also for our operations
GRI 103-2, 103-3 SDG 6.a, 9.4 7. ASSUME 8. DEVELOP 9. PROMOTE
and, therefore, is one of the material topics that make In addition to the challenge for current operations,
up our Sustainability Master Plan. For the management the new projects also come into being with a different
of the topic, we have guidelines for the sustainable use approach to water resources management, focusing
of the resource and goals for continuous improvement. on recirculation, where all projects are obliged to start
Our intention is to achieve, by 2025, a percentage of operations with at least a 75% rate, as is the case
75% of recirculation and to reduce the specific use of Aripuanã.
of new water in all operations.
Within the framework of the guidelines for water
In Cerro Lindo, for example, all the water management, of particular note were the development
used comes from recirculation or from the sea - of tools to monitor the water balance of the units,
the recirculation index is approximately 90%. Despite the analysis of water use accounting on a regular
being at 2,200 meters altitude, the unit is able to use and preventive basis and the identification of the local
ocean water because it has a desalination plant, which water risk to define control, mitigation or contingency.
lets it extract the salt by a process of reverse osmosis
and to pump it for a distance of 60 kilometers until the As a follow-up, initiatives were also developed
operation. This initiative, pioneered in Peru in the mining to elevate recirculation and reduce water abstraction,
sector, represents an important solution to this arid and a Measurement Master Plan was prepared to
region. We also work with the population to advise optimize water outflow measurements for all units.
on how to store rainwater. GRI 303-1 SDG 6.4
Based on the goals to be achieved by 2025, the
In Vazante, the water treatment of thickeners indicators of percentage of recirculation and specific
is currently under study, to be disposed together use of new water (m³/t) are being followed systematically
with the tailings in the Aroeira dam. The proposed in a corporate database, integrated for the entire
technology is to treat the supernatant, so as to company in 2018.
recirculate water back into the process.
In 2018, we maintained the percentage of water
In 2018, under the Mining Lab program, startups recirculation at 66%, which considers the total volume
were also selected to optimize the line of studies of water recirculated in relation to all the water used
focused on recirculation. Examples are the process in the process, reducing the specific use of new water
with the potential to treat calcium and magnesium to 28 m³/t. Moreover, our water metering master plan
sulfates by means of electrocoagulation and enable initiatives progressed.
the recirculation of water/effluent in the smelter’s units;
and the development of new bioflocculants capable We also diagnosed the basic sanitation conditions,
of optimizing current effluent treatment systems focusing on access to drinking water and collection/
in the smelter and mining unit. treatment of domestic sewage, in the municipalities
where we have operations in Brazil and Peru. The
% of recirculation based objective of the diagnosis was to map strategies for
Increase water recirculation to 75%
67% 66% 66% on total water used by an action plan designed to meet the SDG 6 targets
Base Year: 2014
the company (Drinking water and sanitation).
Sum of all new water

Reduce the specific use of new water collected and used by the
(m3 new water/tonne of products) 31.59 31.00 28.00 company, including surface
Base Year: 2014 runoff, rain, mine lowering,
etc. per tonne of product

River Day GRI 303-1
Due to the low levels of water reservoirs in Brazil,

the National Water Agency (ANA) proposed an
emergency action to suspend one day’s catchment
in the São Francisco River, named River Day, which
occurred from January to November 2018. We
presented the agency with an alternative idea: to
replace the weekly shutdowns with a 14% reduction
in water capture during the month, with additional
social and environmental actions. Immediate
reduction was 10%, with an additional reduction of
4% over 60 days. Thus, the Três Marias unit reached
an average reduction of 24.36% of water captured
from the river, from 530 m3/h to 401 m3/h.
A number of internal and external actions were taken

Forums Water Capture by Vazante SDG 11.6, 15.1 The works were started in May 2018, with a diagnosis to reach this level of reduction, among them:
of the hydrographic basin through preliminary surveys of
In order to increase sustainable water use, corporate We are undergoing a period of attention in the Vazante its borders, access roads, registry of springs and local ■■ Increased water recirculation during the zinc
and operational teams participated in the 8th World Water region, not only due to the reduction of rainfall volume in properties, state of conservation of the springs and a filtration step;
Forum, the world’s largest water event that was, held for the Santa Catarina River basin, at the lowest level in the last photographic inventory.
the first time in Brazil (in Brasilia). decades, but also because of the dolination phenomenon, ■■ Maintenance to eliminate leaks in the
which are depressions with characteristic occurrence in The project’s initial duration is five years, involving the production areas;
We participated as lecturers at the IV Latin American karstic soils (rich in limestone). Therefore, we routinely construction of approximately 114 kilometers of fences to
Forum of Engineering and Sustainability, promoted by the monitor the flow of the Santa Catarina River, conduct protect the springs and the installation of 26 flow monitoring ■■ Installation of flow-reducing nozzles in hoses
Federal University of Tocantins (UFT), an event involving piezometric monitoring and we prepared a dolomitic risk points. In stage 1 (2018/2019), we prioritized the recovery used for cleaning purposes;
more than one thousand students from Brazil and management plan. We also support the study being carried of four streams forming the Guariroba Stream, one of the
Latin America. We addressed the importance of the out by the Technological Research Institute (TRI) to evaluate main Santa Catarina River tributaries, with the construction ■■ Change in periodicity (from fortnightly to
standardization of indicators and risk assessment for the the impact of river drainage in the region, work designated of approximately 6.2 kilometers of fences and the installation monthly) for cleaning the administrative offices
management of water resources in mining and smelting by the Public Prosecutor’s Office due to a Term of of a flow monitoring point. with hoses;
enterprises. We believe our participation was relevant for Commitment we signed.
the integration of technical-scientific knowledge and to ■■ Water blitz, to map the points of waste;
bring a practical vision of what an environment engineer Because the Santa Catarina River represents one
does to the students. of the main water courses in the region, the Vazante Unit ■■ Guided tours for schools and the local
also initiated a major project designed to recover the community, with the distribution of a booklet
headwater region of the river, which covers an area of Use of water containing water-saving tips;
50 thousand hectares and contains 134 springs. by source GRI 303-3
■■ Awareness raising on websites, radio shows
7% and newspapers about the topic.
Disposal SDG 6.3
12%
An efficient water recirculation program contributes
to ensuring not only less fresh water intake but also
lower effluent volumes, thus reducing both the risk of
81%
an adverse impact on the environment as well as the
cost of effluent treatment. Such wastewater should only
be discarded after a suitable treatment that guarantees
Rainwater all the required quality parameters. During the year,
Surface water we allocated 14.8% of the environmental expenses for
Groundwater the treatment of effluents.

Energy
Material topic intensity Gj/ton GRI 302-3
Emissions and energy

GRI 103-1, 103-2, 103-3 SDG 11.6, 13.2 7. ASSUME 8. DEVELOP 9. PROMOTE
14.07
13.97
13.57
To reduce GHG emissions in operations and logistics, we signed contracts with
startups selected through the Mining Lab program to develop solutions to reduce
diesel consumption in equipment and its replacement with biodiesel (more details
in Innovation and Technology, page 39).
Energy consumption
2016 2017 2018
The consumption of thermal energy in our operations for the year totaled
14,970,823 GJ, an increase of 0.1% compared to 2017, of which 11,742,700
were from renewable sources. This proportion particularly reflects the Brazilian Intensity of GHG emissions
and Peruvian electric power matrixes, since both of their bases use a higher (tCO2e/t) GRI 305-4
share of water sources.
1.151
In the year, electricity generation represented 19% of the total consumed.
Cogeneration is used for steam boilers and generation in power plants and
small hydropower projects, managed by Votorantim Energia (which serves
0.895
0.879
Votorantim S.A.’s subsidiaries and also outside clients). GRI 302-1
Target 2016 2017 2018 Form of measurement Energy consumption inside and outside the organization GRI 302-1, 302-2
Reduce the emission of

Tonnes of carbon
greenhouse gases (GHG)
12,479,865
12,277.147
0.895 0.879 1.151 equivalent (tCO2e)/
11,742,700
per ton of product by 5%.
tonne of product
Base Year: 2014
2016 2017 2018
3,228,123
2,943.137
2,371,644
Aware that intense climate variations can adversely affect our operations, delay timetables and raise operating costs,
among other business risks, we remain committed to the topic and set goals to strengthen a low-carbon economy and Greenhouse gas emissions (tCO2e)
build an increasingly sustainable society. GRI 305-1, 305-2, 305-3
We aim to reduce greenhouse gas (GHG) emissions by 5% per tonne of product by 2025. Toward this goal, since 2%
2017 we have put into operation a biomass boiler at the Três Marias unit, replacing boilers fueled by petroleum-derived
fuel oil, which allowed us to save US$ 5.2 million per year, reducing greenhouse gases emissions by 30% and lowering the
cost of steam production by 35%. The structure uses eucalyptus wood chips and/or bagasse produced in the region as 2016 2017 2018 2016 2017 2018
fuel. The next step is to introduce the biomass into the unit’s operation for steam production. This model, proved Non-renewable Renewable
46%
efficient in Três Marias and next should be deployed at the Juiz de Fora unit. SDG 7.2, 9.4, 12.2
Atmospheric emissions
Another important initiative is underway at the Cajamarquilla unit in Peru: the substitution of diesel oil with natural
gas, made possible through the implementation of a gas pipeline in the region. Installation began in 2018 and operations For the year, the greenhouse gases (GHG) from our operations totaled
will begin in 2019, reducing the plant’s emissions and fuel costs. 1,269,670 tCO2e, 37% more than the previous year due to an increase of
52%
ore production and transportation. Emissions from electricity consumption
(Scope 2) accounted for 46% of the total and indirect emissions (Scope 3)
totaled 30,661 tCO2e. The emission intensity raised to 1.15 tCO2e per tonne
Scope 1 (Direct emissions)
of zinc produced. GRI 305-1, 305-2, 305-3, 305-4
Scope 2 (Emissions from purchased energy)
Scope 3 (Indirect emissions)

Material topic
Local development For us, being trustworthy and Social Investment GRI 413-1 SDG 4.4, 8.6, 10.2
socially intelligent means being able

GRI 103-2, 103-3 1. RESPECT 4. ELIMINATE 5. ERRADICATE
to co-create a positive and structured In 2018, our social investment with own, incentive and outside
legacy for the communities impacted funding totaled US$ 10.4 million. The decline from the US$ 14.6 million
by our operations. We achieve this goal allocated in 2017 was mainly due to the difficulty of approving projects
through a good relationship with society, through the Peruvian government’s “Works for Taxes” counterparty
promoting positive transformations program for social initiatives. Of the nearly US$ 7 million budgeted for
for local development in a harmonious incentive projects, only US$ 1.1 million was invested in the year. GRI 203-1
environment, based on respect
and empathy. We sponsored in 2018 a total of 193 projects in 17 locations in Brazil
and Peru, benefiting more than 29 thousand people. The projects are
Promoting local development means structured according to the four strategic axes.
implementing local actions or the
localized micro-regions surrounding our Local Economic Development Axis
businesses that allow for social inclusion,
strengthening and diversification of the We want to contribute to the sustainable economic development of the
local economy, improvement and territories, through the enhancement of their local resources, the qualification of
innovation in public policies, people and environmental protection.
environmental protection and rational
use of natural resources, social Fisheries and Tourism Plan SDG 8.9, 12.B, 14.7
mobilization, infrastructure and public

facilities. The Social Agenda in 2018 for Três Marias identified the demand for
tourism planning in the community of Beira Rio, which already has a tourist flow
With this in mind, we developed a directed to the practice of sport fishing and other nautical and leisure activities.
social strategy that began with social Tourism is one of the economic development alternatives for the region,
characterization, was built through the especially that linked to the fishing segment, but still lacks planning and
dialogue established in the social agenda structuring. The project aims to value and develop tourism in the region, with
and resulted in Local Development Plans emphasis on tourism and sport fishing, positively impacting the local economy
(LDPs) for each region. This process of and environmental preservation.
understanding the needs of each locality
and interacting with social actors has In order to help promote the destination as a relevant option for visitors, we
been conducted since 2015. This has have partnered with Turismo 360 and mapped the entire tourism and fishing
made it possible to pay attention to listen chain in the area, building the Tourism and Fisheries Sector Plan and its
to the demands of the communities, implementation strategy. The preparation of the plan was conducted using a
Target 2015 e 2016 2017 2018 Form of measurement
swap knowledge, list material topics and participatory approach, based on four workshops attended by more than 50
Socio-economic to establish priorities for action. local representatives. The actions were detailed and validated together with the
Integrated Plan for participants.
Aripuanã (ISP); Subsequent to this process, the
adaptation of the synergies and connections between the As a result of the survey, 148 fishermen in the Beira Rio neighborhood
investment portfolio LDPs enabled us to establish Nexa’s four were identified: 82% men and 18% women. Of these, 64 have other sources
Characterization Local Development (social projects) of strategic axes that guide our social of income, acting in tourism or as fishing guides. Cultural, environmental and
for Três Marias, Plan (LDP) for the Brazilian units to projects portfolio starting in 2018: Local food attractions of the neighborhood and surroundings areas also were
Achieve 90% Vazante, Morro 100% of the units the LDPs; Percentage Economic Development, Public identified, which can be helped by the plan.
efficiency in Local Agudo and in Brazil: Ambrosia, socioeconomic of compliance Management and Social Participation,
Development Plans Fortaleza de Minas, Fortaleza de Minas, characterizations with each unit’s Socio-Environmental, Childhood and Asfaz Hands that Germinate Project
(LDP) Juiz de Fora, Juiz de Fora, Morro built for Cerro Lindo Development Plan
Youth Aspects. For 2019, our projects This project was created within the strategy to stimulate the economic
Aripuanã, Caçapava Agudo, Três Marias and Magistral, and
portfolio was adjusted to meet this new autonomy of Três Marias, expanding job opportunities for its inhabitants
and Cajamarquilla and Vazante the social agenda
strategy, both in Brazil and Peru. and promoting efforts to improve pesticide-free vegetable production and
pilot in Peru
sale of the products to the community in general. The project benefits the
(Cajamarquilla);
construction of the Community Farm Association (Asfaz), made up of 40 families that have joined
strategic axes for due to social vulnerability issues, seeking new opportunities for reinsertion
Nexa’s social projects into the market and the community. This work involves actions both to boost
the productivity of greenhouses (10 built in 2017 and four new ones in 2018),

Social Agenda - community participation group Safe Water
The Social Agenda was established in 2015, based The objective is to contribute to increased access to
on a social description of the regions in which we operate drinking water and sanitation for communities in the vicinity
and full dialogue with all players. As early as 2018, of our operations in Peru. In 2018, 2,215 households
we stimulated social mobilization through workshops received drinking water, 365 homes were connected to
conducted from the LDP content. Four meetings were held adequate sanitation systems, four water systems were
in each of Nexa’s work areas in Brazil (Juiz de Fora, Vazante, improved, and 12 JASS (Management and Sanitation
Morro Agudo and Três Marias). These meetings led to Services Administration) operations were formalized and
discussions of solutions and chains of action in the project placed into operation. In addition, three water system
formats. The results were summarized in pre-project social registries were prepared.
registries, to be carried out in 2019. This process was of
paramount importance for construction of social projects Infancy and Youth Axis
for the areas in question.
Our mission is to contribute to the social development
Socio-Environmental Axis of children and young people, to make them protagonists
and social participants, in addition to being trained and
We aim to contribute to improving the availability qualified for study and work. Hence, we seek to strengthen the
as well as to train farmers in dealing Public Management and were presented. Among the definitions and quality of water, solid waste management and social protection network and social participation process.
with administrative and commercial Social Participation Axis was the expansion of solid waste environmental health conditions.
questions. One example was the collection in the region, currently VIA - Support for the Children and Adolescents Law
adoption of agronomic markings, In this strategic area, our objective standing at 2.65 tons/day. In the first Production and sustainable use of water SDG 6.A SDG 5.2, 16.2
which led to a more than 20% is to stimulate social participation, two years (2019-2020), the goal is to This project seeks to contribute to the improvement
improvement in production and loss strengthening citizenship and a increase collections by 1.2 tons/day, of water availability for the family farmers of Morro Agudo The customized project seeks to combat the violation of
management results. Also important pro-active civil society while also which will be possible by raising the through the conservation and protection of springs and the rights of children and adolescents, with the improvement
were customer service training, encouraging improved public sector population’s awareness of the issue riparian forests, orderly capture and rational use of water of the Social Protection Network (SPN) and heightened
management training and consulting management. The final goal is more and the inclusion and training of the in agricultural production. After an environmental public awareness. VIA in Aripuanã is run in an expanded
sessions for the joint preparation of effective public policy development. collectors. The project also is linked to diagnosis conducted in 2018, the actions for preservation format, designed to intensify actions to prevent and address
the association’s Commercial Plan. We highlight below some of the the Socio-environmental axis. and conservation of water sources and riparian forests violations of child and teenage rights, especially sexual abuse
projects during the period: will begin. At this stage, areas that are in compliance with and exploitation. It also strives to raise the consciousness of
Entrepreneurship and Program to support public environmental legislation will be protected by smooth employees and the community about violence against
new business Program to support public management - health wire fences, while the others are converted into Degraded women.
Our intention is to promote management - integrated solid modernization front Area Recovery Projects (PRAD).
more self-employment opportunities waste management work front We support the city of Santana In 2018, we began construction of a Strategy for the
for young people, women and SDG 11.6 da Boa Vista (RS) through a project Good Rural Practices Project Prevention and Care of Cases of Sexual Violence against
individuals in greater vulnerability We supported the city of Vazante designed to help the municipality The Morro Agudo Good Rural Practices Project in Children and Adolescents (VSCA), with the participation of
through entrepreneurial actions. regarding the creation of an Integrated achieve financial equilibrium, with Paracatu (MG) was designed to promote agricultural and professionals from the Social Protection Network for Children
With the intervention in 2018, Solid Waste Management Plan (PGIRS), the objective being to monitor the environmental technical assistance for farmers in the rural and Adolescents in Aripuanã (MT).
we expect to see an average 27% adopting participatory methodology. spending targets established in region of Morro Agudo. It is a project for awareness-raising
improvement in the profitability The project helped us guarantee 2017. The development of financial and mobilization to improve the productive processes in the Information and community awareness initiatives were
of the companies supported by the mechanisms for participation and social management with emphasis on field and environmentally correct deforestation practices in also carried out through educational actions for parents,
project. We followed 165 existing control through the creation of a collections and improvement of a Permanent Preservation Area (PPA), for waste disposal, teens, children and the community at large, addressing the
businesses (El Porvenir, Cajamarquilla, Steering Committee (with a Nexa investment capacity together with sewage treatment and environmental education focused Rights of Children and Adolescents (ACD) and prevention as
Shalipayco and Magistral) and representative), a Support Group a project aimed at the efficiency of on the preservation of water source springs. In all, 30 farmers contained in the VSCA.
promoted the opening of four new (political involvement group) and the municipal health system were are assisted by the project.
businesses. In the period covered community meetings (seven in total), the mains demand identified in the
in the report, 695 persons were public consultation and a public hearing municipality. This was established
trained (of which 600 were women) attended by 244 people. During the through management software
and 37 business plans were prepared. event, held at the end of 2018, the and training in the cost control
process for preparation of the plan and and revenue collection increase
the actions necessary to address the methodology, along with a health
problems identified in the diagnosis efficiency measure.

Volunteer Program
(Programa de voluntariado)
Transversal to the strategic axes, the We Are Everyone The two innovative initiatives were:
program, created in 2017, has already advanced significantly
to a more mature level, with hundreds of actions carried out ■■ I NTER@JA, from Juiz de Fora, directed to young
in all the organization’s units and corporate centers. In 2018, people who have great difficulty in entering universities,
7,806 hours were dedicated to actions, involving 2,287 technical courses and higher quality jobs. This struggle
voluntary actions and more than 10 thousand beneficiaries. leads to a lack of perspectives and even to dropping
The number of hours was 35% higher than the total reached out of school, since the individuals do not identify
in 2017. By 2019, the goal is to reach 15 thousand volunteer possibilities for their inclusion in the competitive formal
hours and advance from 20% to 40% in the level of volunteer labor market.
maturity in all units, positively impacting Local Development.
■■ A
lternative Cultivation, at Cajamarquilla, which
At the end of the year, in our Leadership Meeting, developed alternate vegetable crops rich in nutritional
volunteering was highlighted as a company strategy. content using recycled PET bottles. The objective is to
Recognition was given to two units with the highest level of supplement the diet of families that have little access
maturity in volunteering; two innovative initiatives; and each to a varied menu with high nutritional value foodstuffs,
unit’s most inspiring volunteers. thus positively impacting the development of children
and teens in the nearby communities.
For 2019, our main challenges are to intensify

Youth 3.0 (Juventude 3.0) Improvement of educational quality in Peru a more recurring involvement of employees and integrate
The Youth 3.0 project aims to reduce the This program aims to contribute to more and better outsourced workers in the activities, further encouraging a
vulnerability of teens and young people (aged 15-24) educational achievements for children living in the area
More than structured volunteering culture in the units; replace one-off
in Igrejinha, a Juiz de Fora neighborhood, by expanding
opportunities for coexistence and participation of
these young people in the community. It stimulates
of the company’s direct influence. It combines different
strategies, such as teacher training, subsidies for hiring
teachers and maintenance of libraries, among others.
7 thousand
hours dedicated to the program
initiatives for more continuous and higher impact actions;
and expanding partnerships with organizations to support
project feasibility actions. In addition to being a legacy for the
self-knowledge, the preparation of a life project, Among the results in 2018 were: communities, the volunteer program contributes to the
the creation of spaces for youth participation in the improvement of the organizational climate, closer relations
community and the promotion of social initiatives and ■■
Improved academic performance in mathematics and between employees and the construction of networks.
contributions. Toward this end, it seeks to empower new verbal reasoning;
perspectives for the future and improve young people’s
self-esteem so that they engage in improvement ■■ teachers hired through funding from the company
5 Volunteer main actions conducted
projects in their communities. In 2018, four modules and 77 teachers trained in pedagogical strategies;
Occupational orientation Actions by strategic axis
were implemented — Identity and Purpose, Leadership,
Communication and Culture, and School Mobilization. ■■ ,281 children benefiting from the program, 67% of
6 61% Good-humored educational
whom received a basic kit of materials for the start of workshops
the school year;
Educational campaigns 67%
6 thousand
children benefiting from the program
■■ 3 school libraries set up.
Opportunities for higher education

10%
Training Offices Infancy
and Youth 21%
Social and
This activity aims to facilitate the access of Socialization activities environmental
of educational quality in Peru 6%
Funding campaigns
outstanding youths to higher education opportunities.
In 2018, 45 young people (30 in El Porvenir and 15 in
Shalipayco) attended higher education courses through
full or partial scholarships financed by the company; 4% Infrastructure improvements
68 new scholarships were awarded (16 in El Porvenir, 4% 8%
30 in Cerro Lindo, 20 in Cajamarquilla and 2 in Magistral) Social Public
and the opportunity was offered to 465 students, Group Reforms Local Economic
Management and
especially in Shalipayco, to attend pre-university centers 11% Planting Initiatives Development
Participation
to improve their chances to continue their studies at the Social and environmental workshops
university or college technical level.

Material topic
Decommissioning
GRI 103-2, 103-3 SDG 11.4 1. RESPECT
Our mining and industrial facilities are planned for a The award we received from Benchmarking magazine
complete cycle of beginning, middle and end of the illustrates the responsibility we have assumed regarding a
operation, ensuring not only the building and operation vision of the future about the economic and social
of our mining and smelting units in Brazil and Peru, but development in the locations where we operate. The
also an adequate shutdown of their activities, designed case history was presented during the 13th Mine Closure
to co-create a legacy for the surrounding community. International Conference in September in Leipzig
(Germany) and reports how we anticipate the shutdown
Our commitment to this legacy places the issue front planning process. The work was also presented at the IV
and center and, as a strategic part of the business, is Latin American Engineering and Sustainability Forum,
controlled by internal policies and involves everybody organized by the Federal University of Tocantins (UFT).
from the operational units to the executive board The event involved over a thousand students from Brazil
members. Regardless of current legislation, all our and Latin America and contributed to the dissemination
operations have future use and decommissioning plans of good practices for a training environment focused on
based on the most current technical references and best future professionals.
market practices. They are more complete and
committed plans than the current legal requirements. While most companies begin planning for
decommissioning after the startup of operations, we do
so as of the beginning of the project planning stage
Ensure that 100% of the units (FEL1). For Aripuanã, for example, which is in the building
have prepared a future-use Percentage of total phase, we already have concluded a study for future use
alternative study and an updated units with an alternative of the area and a conceptual plan for the
decommissioning plan, in line 22.2% 83.3% 83.3% future uses study decommissioning process.
with the sector’s benchmark and updated
standards. decommissioning plan.
Base year: 2016

The last review of our units’ In the first stage, a socio- Decommissioning of Vazante SDG 15.2
decommissioning plans was environmental diagnosis is prepared for

conducted over the course of 2017 the unit’s and the municipality’s areas, The Vazante unit in Minas Gerais, which has been operating
(units in Brazil and Cajamarquilla) inserting the operations into a survey since 1969, already has initiated decommissioning plan actions.
and in 2018 the process in the other of potential future uses for the area; in The current forecast, based on probable and confirmed reserves,
units in Peru were about 60% the second stage, possible future uses is that the mine will operate through 2027, although this horizon
completed, with the involvement are mapped and the most appropriate should extend for even a few more years, with investments aimed
of communities and the preparation from the technical and economic points at further extending its useful life.
of development agendas for each of view are indicated; in the third stage,
locality. We consider it important the decommissioning actions that must In the survey, the potential of developing ecotourism (taking
to monitor and involve the general be implemented for the physical, biotic advantage of the natural potential of pits and caves in the region),
public and community institutions and socio-economic environments are teaching (the unit’s mining structures) and religious tourism
in an open and transparent way so defined in order to achieve the (Our Lady of Lapa Festival) were identified. We also envisage
that there is effective awareness intended future use; and finally, in environmental measures (physical, chemical and biological means),
of the impacts of the ending of our stage four, the decommissioning such as recovery actions for degraded areas and alternatives for
activities. These situations involve actions defined in step three will be local development after the demobilization of our assets.
the release of a large number of jobs evaluated, to be based on the
and reduces the direct and indirect execution of the plans and whose Among the results already obtained in the environmental
municipal tax revenues. global value will help define the unit’s initiatives are: recovery of 457.34 hectares, out of a total of
decommissioning financial provision. 868.05 hectares; decommissioning of a pit, five sterile stacks
In Fortaleza de Minas, whose and de-characterization of one of the two tailings containment
operations were suspended and At the end of the fourth geotechnical structures. We expect to make investments
effectively sold in 2018, we stage, the decommissioning plan of R$ 77.2 million over the next five years to comply with
maintained our commitment to the is consolidated and monitored by the the Decommissioning Plan.
community and other stakeholders unit. This document contains three
to continue the social projects in levels of detail - conceptual, basic
progress until the end of 2018. and executive - with the beginning
of the decommissioning activities five
Sense of urgency years before the expected closing
date of the operation and continuity
Although the social initiatives for the five years subsequent to the
that we conducted throughout the effective end of the activities. recovery of
operational phase are designed
to stimulate the community’s
pro-activism and autonomy, the
formalization of the decommissioning
During 2018, the decommissioning
projects that will begin in 2019 for
Vazante and Três Marias were initiated,
457.34
hectares
actions imbues the population which, although they have a longer
and the government with a sense useful life, already have structures to
of urgency regarding the issue, be decommissioned within the scope
considering that one of the great of a progressive shutdown process,
challenges for the continuity of social such as caverns and tailings deposits.
projects is that the community takes Although there are advanced studies to
on all of the acquired processes, tools increase the life of the mine, we follow
and knowledge. the plan filed with the National Mining
Agency (NMA). investments of
77.2
The decommissioning plans are
technical documents, which contain
guidelines for a safe, complete and
R$ million
efficient decommissioning operation
in which economic, environmental and
social actions are considered. They
follow four steps throughout the life
cycle of the operation.
Material topic
We encourage everyone, who if they witness any Supplier relations
Human Rights situation of violation of Human Rights, to denounce GRI 103-2, 103-3 SDG 8.8
GRI 103-2, 103-3 SDG 5.1, 8.7 2. ENSURE 7. ASSUME 8. DEVELOP
the practice by dialing the number 100. We recommend
that partner companies adopt prevention measures and Our Supplier Management Program (Programa de
procedures for handling complaints related to human Gestão de Fornecedores) considers four topics: cost/
rights violations. And we ask our partners to also commit value, quality, contractual compliance (agreements and
to our Social Golden Rules, which call for punishment in legal coverage) and homologation (tax compliance and
cases of non-compliance (rules include behaviors and licenses). Regardless of a supplier’s size, we seek to
practices related to the guarantee of Human Rights). All engage everyone in the best socio-environmental
employees are trained through a Human Rights booklet practices with a view toward ensuring the responsible
based on our Code of Conduct. GRI 412-2 SDG 16.B use of natural resources and respect for workers’ rights.
We reviewed the process for registering and

Outsourcing management contracting suppliers to all our units (smelters,
administrative, mining) in 2018, both in Brazil and
The outsourced management system is underpinned Peru, resulting in the quarterly standardizing of policies
by four fundamental pillars (processes, tools, structure and and evaluations. In order to classify, approve and analyze
people). The Outsourcing Management Program continued the suppliers, in addition to the basic documentary
to be run in 2018. This project seeks to standardize issues, we now ask for environmental operating licenses,
practices related to the management of outsourced as well as take into account matters involving social
workers, ensure compliance with legal obligations, improve responsibility and human rights preservation. Throughout
service quality and relations with contracted companies and the year, all suppliers received a copy of our new Code
optimize costs through the management of our contracts. of Conduct and signed a commitment pledge.
There are 25 multidisciplinary fronts in Brazil and 36 Our main partners undergo quarterly evaluation
in Peru, which work on improving procedures, tools, flows, that addresses five dimensions: operational, health
indicators and greater clarity and definition of roles and and safety, environment, legislation, sustainability
responsibilities throughout each stage of the service and compliance.
Insertion of the management process.
100% of
socio- At the end of each cycle, the partner company
the suppliers
environmental Completion of Some companies receive technical visits from the receives grades for each dimension and an overall score.
of critical categories
criteria in the three supplier Supply and Supplier Management areas. In the event of Those who do not have the minimum grades for each
engaged in the socio- Regular supplier Percentage
process of evaluation cycles complaints of non-compliance with requirements related dimension are referred to a reaction and recovery plan.
environmental risk performance of rated
qualification and and identification to human rights impacts, an investigation process is However, if low scores become frequent, the contract
prevention and evaluation suppliers
adaptation of of improvement initiated to ascertain the facts and take the applicable with the company may be discontinued. The results
mitigation program
a checklist for opportunities actions, which may involve fines or contract termination. of the cycles fuel our internal processes, such as the
Base Year 2014
on-site audits In 2018, no cases of violation of these conditions prioritization of suppliers with better grades and not
of suppliers
were registered. just lower prices. This periodic evaluation will also nurture
awards programs that will be implemented in the future,
because we want to recognize suppliers with the best
We consider as examples of human rights violations: general results or by categories, such as safety. The
The commitment to internationally recognized Human evaluation of the due diligence processes, now
Rights is a fundamental value for us, which is based on ■■ se of violence, an aggravated situation
U standardized and carried out periodically, is part of
respect for each individual’s dignity and worth. Any violation if it occurs against people in situations the evaluation.
of human, physical, psychological, cultural and social rights of vulnerability;
that involves violence, abuse or discrimination, especially of
children and teenagers, is not permitted under any pretext. ■■ Discriminatory attitudes or racism;
■■ Use and exploitation of child labor;
■■ Situations analogous to slave labor;
■■ buse or sexual exploitation of children

A
and teenagers.
In 2018, we completed three supplier evaluation Requirements for the
cycles, which gave us a broad picture of the method
and made it possible to draw up action plans aimed at selection of suppliers
identifying opportunities to strengthen the process.
The criteria applied in the selection
In addition, critical suppliers undergo a process of suppliers depend on the type of service
that evaluates their financial health (Brazil). Monthly that will be provided and can broadly include
and annually, they are evaluated based on a compliance the following issues:
checklist comprising more than 250 global lists if there is
any involvement that could pose a risk to Nexa. For Peru, Environmental Aspect
compliance assessments (Splaft) are carried out for critical ■■ Compliance with environmental legislation in
suppliers as soon as they are registered. the countries of operation
Even if our operations are not considered to ■■ ISO 14001 standard

be at risk of human rights violations, our contracts
include clauses that prohibit the use of child labor ■■ ealth, workplace safety and environmental
H
or forced or slave-like labor. Suppliers must also ensure programs
contractually a safe and healthy work environment,
freedom to unionize and non-discrimination by gender, ■■ Environmental risk prevention programs
race, social class, nationality, religion, physical or mental
disability, sexual choice or any other condition ■■ Operating Permits/Environmental Operation
of diversity. GRI 407-1, 408-1, 409-1 Supply Chain GRI 102-9, 103-2, 103-3 We always give preference to suppliers in the vicinity
■■ ederal Technical Registration of the Brazilian
F our units, which is a criterion for tie-breaking in the choice of
If a complaint is filed regarding non-compliance Institute of Environment and Renewable Natural Our supplier registry covers the most diverse segments: suppliers. We take into account the advantages represented by
with requirements related to human rights impacts, Resources (Ibama) raw material inputs, waste management, environmental proximity to the operations, identification with the culture and
an investigation process is initiated to ascertain the management, energy supply, minerals and chemical the impulse given to local development provided by a long-
facts and take the applicable actions. These may involve Socio-economic aspect products, fuels in general, health services, packaging supply, term relationship with companies from the communities. In
fines or contract termination. In 2018, no cases of violation ■■ Compliance with all laws in the countries of transportation in general, MRO (Maintenance, Repair and addition, our units are free to acquire non-critical services
of these conditions were registered. operation (labor, tax, anti-corruption, etc.) Other), facilities and IT, services and maintenance, among locally. We also encourage some suppliers, with larger volumes
others. At the end of the year, 54,430 companies were of purchases, to open units close to the areas of operation. In
We held the first annual meeting on safety with ■■ Does not appear on the “Slave Labor Dirty List” registered (39,335 in Brazil and 15,095 in Peru) compared 2018, 12 in-company stores were installed near or inside the
suppliers in Peru, to exchange information on the subject, published by the Brazilian Ministry of Labor and to 53,844 at the end of 2017. company’s units.
and the workshop “Meeting of Opportunities” in Aripuanã, Employment
which addressed the criteria we adopted for registration In December 2018, we began to migrate our management Our purchases totaled US$ 1.3 billion in 2018, of which
and selection of suppliers and future demands for goods ■■ Signing of a document based on the SA 8000 and suppliers to the Ariba platform, covering the processes of 75.6% was contracted from companies located in the
and services of the enterprise. standard, including non-use of forced or child registration, blocking/unblocking, extension and homologation regions where we operate.
labor, providing a safe and healthy working of suppliers.
environment for workers’ freedom to associate
and non-discrimination of any kind
Expenses with suppliers GRI 204-1
2016 2017 2018
Total value spent on suppliers (US$ million) 1,537.40 1,554.80 1,288.98

In 2018, 61% of new suppliers were selected and
included in the system based on labor practice criteria, % of spending on local suppliers 65.1% 65.7% 75.6%
9% on environmental criteria and 12% on human rights
and social impacts. The target through 2025 is to engage
100% of critical suppliers in social-environmental risk
prevention and mitigation programs. GRI 308-1, 414-1
2016 2017 2018
GRI Annex Total
Men 3,616 3,639* 3,696

Monthly
Women 480 509 571
Profile indicators Men 1,196 1,213 1,242
Own employees Hourly
Total number of employees GRI 102-8
Women 53 65 82
2016 2017 2018 Men 30 14 0

Trainees
Brazil Women 12 6 0
Men 1,541 1,541 1,513 Men 70 73 68

Monthly Trainees
Women 312 344 361 Trainees and Women 62 76 56
apprentices Men 28 31 35
Men 1,196 1,213 1,242
Own employees Hourly Trainees
Women 51 65 82 Women 14 17 21
Men 5 0 0 Service providers Permanent 6,582 6,971 6,656

Trainees (outsourced)
Women 5 0 0 Temporary (projects) 359 396 6,752
Men 42 47 42 TOTAL 12.502 13.010 19.179

Trainees
Trainees and Women 44 57 39
Comment:
apprentices Men 24 31 35 All employees are hired indefinitely; trainees and apprentices have a temporary contract.
Apprentices
Women 13 17 21
Service providers Permanent 553 1,115 1,164

(outsourced)
Economic indicators
Temporary (projects) 359 396 4,697
Entities included in the financial statement GRI 102-45
TOTAL 4,145 4,826 9,196
Cia. Magistral S.A.C
2016 2017 2018 Nexa Resources Atacocha S.A.A. - "NEXA ATACOCHA"
Abroad Nexa Resources Perú S.A.A. - "NEXA PERU"
Inversiones Garza Azul S.A.C
Men 2,075 2,098 2,183
Monthly Votorantim GmbH
Women 168 165 210 Pollarix S.A. - "Pollarix" (i)
L.D.O.S.P.E. Geração de Energia e Participações Ltda. - "L.D.O.S.P.E."
Men 0 0 0
Own employees Hourly L.D.Q.S.P.E. Geração de Energia e Participações Ltda. - "L.D.Q.S.P.E."
Women 2 0 0 L.D.R.S.P.E. Geração de Energia e Participações Ltda. - "L.D.R.S.P.E."
Men 25 14 0 Nexa Resources El Porvenir S.A.C.
Trainees Nexa Resources UK Ltd. - "NEXA UK"
Women 7 6 0 Minera Bongará S.A.
Men 28 26 26 Minera Pampa de Cobre S.A.C
Trainees Mineração Dardanelos Ltda.
Trainees and Women 18 19 17
Mineração Santa Maria Ltda.
apprentices Men 4 0 0 Rayrock Antofagasta S.A.C
Apprentices Nexa Resources Cajamarquilla S.A. - "NEXA CJM"
Women 1 0 0
Nexa Recursos Minerais S.A. - "NEXA BR"
Service providers Permanent 6,029 5,856 5,492 Votorantim US. Inc.
(outsourced) Temporary (projects) 0 0 2,055 Campos Novos Energia S.A. - "Enercan"
Cia. Minera Shalipayco S.A.C
TOTAL 8,357 8,184 9,983
Direct economic value generated GRI 201-1 Expenses with local suppliers GRI 204-1
Breakdown of Value Added (US$ thousand) 2016 2017 2018 Amount spent on local suppliers (US$ million) 2016 2017 2018
Direct Economic Value Generated Amount spent on Local Suppliers 1,000.93 1,021.35 974.41
1) Revenue - - - Total amount spent on Suppliers 1,537.38 1,554.80 1,288.99
1.1) Sales of Products and Services 2,265,111 2,706,831 2,779,011 Percentage Spent with Local Suppliers 65.1% 65.7% 75.6%
1.2) Other Operating Income (Expenses) 408 5,279 8,755
1.3) Allowance for Doubtful Accounts 653 385 544
1.4) Total Revenues 2,266,172 2,712,495 2,788,310

Environmental indicators
2. Inputs acquired from third parties - - - Materials used by weight and volume GRI 301-1
2.1) Raw materials and other production inputs (1,505,750) (1,511,124) (1,169,230) Consumption of Main Materials (tonnes) Classification 2016 2017 2018
2.2) Materials, energy, outsourcing and others (32,611) (43,673) (513,016) ROM (Internal Supply) Non-renewable 13,206,043 12,976,233 13,027,531
2.3) Impairment of property, plant and equipment 979 0 (3,283)
Concentrates (Internal Supply) Non-renewable 1,209,593 1,143,562 1,163,740
3) Gross Added Value 728,790 1,157,698 1,102,781
Other Materials (External Supply) Non-renewable 110,095 354,971 414,910
3.1 Depreciation, amortization and depletion (275,034) (270,454) (267,189)
Other Materials (Internal Supply) Non-renewable 143,189 161,051 191,658
4) Net value added generated 453,756 887,244 835,592
Total volume of main materials - 14,668,919 14,635,818 14,797,840
5) Value added received in transfer - - -
5.1) Equity Pickup (158) 60 0
5.2) Realization of other impacts when investment is written-down 0 0 0 Percentage of materials used from recycling GRI 301-2
5.3) Financial revenues 507,731 167,827 423,752 Percentage of recyclable materials (tonnes) 2016 2017 2018
Total Value-Added Received in Transfer 507,573 167,887 423,752 Total recycled materials used 78,633.23 92,298.30 109,623.61
6) Total value-added to be distributed 961,329 1,055,131 1,259,344 Total materials used GRI 301-1 14,668,919 14,635,818 14,797,840
7) Distribution of value-added - - - Percentage of recycled materials used 1% 1% 1%
7.1) Salaries, benefits and social charges 233.755 278,285 262,964
7.1.1) Direct remuneration 126,570 146,766 142,259

Water withdrawal by source GRI 303-3
7.1.2) Benefits 66,863 76,677 74,292
Areas of Areas without
7.1.3) Social Charges 40,322 54,842 46,413 water scarcity water shortage Dissolved solids
7.2) Taxes, tariffs and contributions 167,026 285,175 240,182 Volume (m³) Volume (m³)
Volume (m³) Volume (m³) <= 1.000 mg/L > 1.000 mg/L
7.2.1) Federal 134,421 195,413 192,607 2017 2018 Volume (m³) Volume (m³) (SDT) (SDT)
7.2.2) State 55,592 70,127 16,711 Surface water (rivers, streams, lakes) 19,468,764 16,432,010 8,610,506 7,821,504 16,432,010 0
7.2.3) Municipal 114 138 0 Ground water (soil infiltration) 96,086,257 111,317,661 103,560,147 7,757,514 110,870,572 447,089
7.2.4) Deferred taxes (23,101) 19,497 30,864 Rainwater directly collected and stored
6,986,740 9,487,889 7,880,096 1,607,793 9,487,889 0
by the organization
7.3) Remuneration of third-party capital 450,039 326,406 663,609
Seawater 3,028,630 3,562,439 0 3,562,439 0 3,562,439
7.3.1) Financial expenses 428,650 298,008 626,406
Produced water (water retained in
7.3.2) Rents 21,389 28,398 37,203 916,992 1,781,731 173,638 1,608,093 1,781,731 0
ores and concentrates)
7.4) Remuneration of own equity 110,509 165,265 90,976 TOTAL WATER WITHDRAWAL
126,487,382 142,581,730 120,224,386 22,357,343 138,572,201 4,009,528
BY SOURCE
7.4.1) Net profit (loss) for the year 110,509 165,265 90,976
8) Distribution of value-added 961,329 1,055,131 1,257,731
Water discharge (thousand m³) GRI 303-4 Total waste weight by type and method of disposal GRI 306-2
2018 19 Total Weight of Wastes (tonnes) 2016 2017 2018
Availability of water Dissolved solids Non-Hazardous Waste Disposal 13,967.10 16,082.18 15,574.40
Areas
Composting 867,22 726.58 1,094.51
Areas of without Reuse/Recycling 10,807.76 11,485.02 10,732.90
water water <= 1,000 > 1,000
Destination 2016 2017 Total scarcity shortage mg/L (SDT) mg/L (SDT) Recovery 0.00 0.00 0.00
Reuse by the Not Not Not Not Incineration (or use as fuel) 29.19 79.33 390.02
70,757.31 61,961.64 60,575.92
organization itself available available available available
Sanitary Landfill 1,574.56 1,741.21 1,804.83
Surface water (rivers, Coprocessing/Refining 11.00 140.70 645.19
119,021.41 106,064.55 119,250,11 103,093.86 15.730,83 114,109.31 4,715.39
streams, lakes)
On-Site Storage 555.55 1,311.58 47.12
Ground water
(soil infiltration)
Not available 3,139.35 8,144.14 8,015.82 128.32 7,819.83 324.31 Underground Waste Injection 0.00 0.00 0.00
Industrial Landfill 121.82 175.93 219.18
Oceans 1,521.74 1,993.28 2.1 0.00 2,2.1.43 0.00 2.1
Destination for specific purposes 0.00 0.00 0.00
Outsourced
treatment Sale- Partial Recycling 0.00 0.00 0.00
Not available 1,506.68 1,533.74 119.64 1,414.10 1,414.10 119.64
(concessionaires Others 0.00 421.84 640.65
and others)
Hazardous Waste Disposal 2,909.59 3,282.04 3,011.74
Water retained
in products Not available 1,273.03 1,387.35 933.61 453.74 958.38 428.96 Composting 0.00 0.00 0.00
and/or waste Reuse/Recycling 408.18 356.59 375.82
Others (evaporation, Recovery 13,51 0.37 0.50
losses, effluents
2,169.98 11,505.99 9,083.76 5,633.94 3,449.81 6,783.09 2,300.66 Incineration (or use as fuel) 0.27 0.19 13.42
supplied to third
parties, etc.) Sanitary Landfill 0.00 0.00 0.00
Total water
122,713.13 125,482.87 141,531.67 117,796.88 23,309.37 131,084.74 10,021.51 Coprocessing/Refining 766.81 1,046.78 1,062.35
discarded
On-Site Storage 365.50 175.43 45.15
19
The water indicators were reviewed by the GRI in 2018 and for this reason, Nexa started to monitor its effluents according to the new Standards to Underground Waste Injection 0.00 0.00 0.00
meet the new specifications.
Industrial Landfill 1,355.32 1,590.97 1,511.39
Sale- Partial Recycling 0.00 94.72 0.00
Others 0.00 0.64 0.22
Disposal of waste TOTAL 16,876.69 19,364.22 18,586.14
Composting 867,22 726.58 1,094.51
Reuse/Recycling 11,215.94 11,841.61 11,108.72
Recovery 13,51 0.37 0.50
Incineration (or use as fuel) 29.46 79.52 403.44
Sanitary Landfill 1,574.56 1,741.21 1,804.83
Co-processing/Refining 777.81 1,187.48 1,707.53
On-Site Storage 921.06 1,487.01 92.27
Underground Waste Injection 0.00 0.00 0.00
Industrial Landfill 1,477.14 1,766.90 1,730.57
Sale- Partial Recycling 0.00 94.72 0.00
Others 0.00 422.48 640.87
Volume of significative gas emissions GRI 305-7
Volume of significative gas emissions (tonnes) 2016 2017 2018

Work-related injuries GRI 403-9
NOx 118 100 83

Work Health and Safety Indicators 2016 2017 2018
SOx 15,647 607 370
Man-hours Worked (Own, Fixed Outsourced, Furnishings and
32,978,913 33,771,849 37,708,422
Particulate matter (PM) 593 622 682 CAPEX Projects)
Carbon monoxide (CO) 12 10 10 Total number of injuries (Level 1) 211 200 173
Total number of injuries without lost time (Levels 2 and 3) 50 44 46
Total number of injuries with lost time (Levels 4, 5 and 6) 24 39 38
Monetary value of significant fines and total non-monetary sanctions resulting from non-compliance Fatalities 2 7 0
with environmental laws and regulations GRI 307-1
Injury Rate (IR) 0.45 0.49 0.47
Period 2016 2017 2018
Frequency rate of accidents with and without lost time 2.25 2.46 2.23
Total number of sanctions 3 5 7
Lost Time Injury Rate 0.73 1.15 1.01
Total monetary value of significant fines (US$) 378,547.60 964,411.75 0
Comments:
Processes through arbitration mechanisms 0 0 0
1. Rate of accidents with and without lost days, calculated based on the sum of the level 2 to 5 accidents
Comments: involving own, permanent third-parties, temporary outsourced employees and Third-Party Capex Projects,
1. This item includes sanctions and amounts received and paid, including both legal actions and administrative multiplied by 1 million and divided by the total hours worked.
proceedings. 2. Not included are level 1 accidents (outpatient) in the injury rate.
2. Indicator not applicable to the central office of São Paulo.
Average training hours per employee GRI 404-1
Social indicators Functional Category Gender 2016 2017 2018
Women 18 4 10
New employee hires and employee turnover GRI 401-1
CEO/Director
Men 21 2 11
2018
Women 37 32 40
Brazil Manager
Men 43 33 94
Age Group
Under Between 30 and Greater than Women 16 19 16

Men Women 30 years old 50 years old 50 years old Coordinator/Consultant
Men 21 33 30
Total employees 2,832 503 977 2,063 295
Women 41 27 37
Employees admitted 404 164 346 214 8 Technician/Analyst/Supervisor
Men 65 54 79
Dismissals 465 181 352 231 63
New hires rate 14% 33% 35% 10% 3%
Women 67 169 0
Trainee
Abroad Men 133 121 0
Age Group Women 22 30 11
Operational
Under Between 30 and Greater than Men 35 47 31
Men Women 30 years old 50 years old 50 years old
Total employees 2,209 227 318 1,515 603 Women 18 20 28

Intern
Employees admitted 300 89 159 23 207 Men 21 20 43
Dismissals 257 53 88 140 82 Women 7 14 1
Apprentice
New hires rate 14% 39% 50% 2% 34% Men 15 27 10
Fees
Women 29 26 22
New Hires 17% Overall Average
Men 40 46 40
Dismissals 17%
Diversity of governance bodies and employees GRI 405-1 Salary ratio and remuneration of women and men GRI 405-2
Age Group 2016 2017 2018 20
30 to 50 Job Position Salary Remuneration Salary Remuneration Salary Remuneration

Job Positions 2018 Total employees 30 years years old + 50+ years old
Not Not Not Not Not Not
Men 8 0 2 6 CEO/Director
reported reported reported reported reported reported
CEO/Director
Women 1 0 0 1 Manager 1.18 1.21 0.96 0.98 1.09 1.03
Men 122 0 91 31 Coordinator/Consultant 0.87 0.88 1.09 1.10 1.11 1.05
Manager
Women 25 0 23 2 Technician/Analyst/
0.81 0.82 0.84 0.85 1.06 1.00
Men 432 52 317 63 Supervisor
Coordinator/Consultant
Women 170 29 137 4 Trainee 0.40 0.40 0.45 0.45 - -
Men 868 146 587 135 Operational 0.67 0.66 0.75 0.75 1.36 1.36
Technician/Analyst/
Supervisor Women 232 106 119 7 Intern 0.78 0.81 0.89 0.89 1.01 0.99
Men 0 0 0 0 Apprentice 0.84 0.84 0.94 0.94 0.97 0.97

Trainee
Women 0 0 0 0
20
In 2018, no trainees worked for us.
Men 3,508 692 2,176 640
Operational Monetary value of significant fines relating to products and services GRI 419-1
Women 225 94 122 9
Period 2016 2017 2018
Men 68 68 0 0
Intern Total monetary value of significant fines (US$) 26,428,423.72 33,045,207.57 63,266,667.93
Women 56 55 1 0
Number of non-monetary sanctions 0 0 0
Men 35 32 3 0
Apprentice Processes through arbitration mechanisms 0 0 0
Women 21 21 0 0
Comments:
1. In this item the fines and penalties received and the amounts paid were included, including both the lawsuits
Composition of minority groups in the organization 2016 2017 2018 filed and the administrative proceedings.
2. The information of the Fortaleza de Minas Unit is not included. Information not available.
Employees over 50 years of age 827 837 898
Women 621 673 730
Composition of governance body (Board Members and Executive Officers )
Sector indicators
Men 15 15 15 Lands that were altered or restored MM1
Women 2 3 3 Amount of land altered or rehabilitated (hectares) 2016 201721 2018
Composition of governance bodies (Board Members and Executive Officers) by age group 2018 Total land altered and not yet rehabilitated 3,190 2,094 1,711
Under 30 years old 0 0 0
Total amount of land altered during the reporting period 32 9 46
Between 30 and 50 years old 5 5 4
Total amount of land rehabilitated during the reporting period, considering the
More than 50 years 12 13 14 148 47 44
agreed final use
TOTAL LAND ALTERED AND NOT YET REHABILITATED 3,074 2,056 1,713
Comments:
1. Indicator not applicable to the São Paulo central office.
21
Dado de 2017 recalculado em decorrência de ajustes na forma de cálculo GRI 102-48
Areas with biodiversity management plans (PGB) MM2 Summary of
2016 2017 2018
Sustainable Development Goals
Total number of units 7 8 8
Total number of units that were identified with the need for a PGB 4 4 4
SDG Description of SDGs targets Page
Number of units that have a current PGB 2 4 2
3.4 By 2030, reduce by one-third pre-mature mortality from non-
communicable diseases (NCDs) through prevention and treatment, and 78
Percentage of units that have a current PGB 50% 100% 50% promote mental health and well-being
Comments: 3.5 Strengthen the prevention and treatment of substance abuse, including
75
1. Indicator not applicable to the central office in São Paulo. narcotic drug abuse and harmful use of alcohol
3.6 By 2020, halve the number of global deaths and injuries from road traffic
37
accidents
Operations with decomissioning plans MM10
3.9 By 2030, substantially reduce the number of deaths and illnesses from
75 and 78
2016 2017 2018 hazardous chemicals and air, water and soil pollution and contamination
4.4 By 2030, substantially increase the number of youth and adults who have
Total number of operations 13 13 12
relevant skills, including technical and vocational skills, for employment, 65 and 93
decent jobs and entrepreneurship
Total number of operations that have
13 13 12 4.5 By 2030, eliminate gender disparities in education and ensure equal
decommissioning plans
access to all levels of education and vocational training for the most
69
Percentage of operations that have vulnerable, including people with disabilities, indigenous peoples and children
100% 100% 100% in vulnerable situations
decommissioning plans
Value of the total financial provision for

$ 208,886 $126,510 $185,552 5.1 End all forms of discrimination against all women and girls everywhere 52, 68 and 102
the shutdown of activities (US$ million)
5.2 Eliminate all forms of violence against all women and girls in public
and private spheres, including trafficking and sexual and other types 95
of exploitation
5.5 Ensure women's full and effective participation and equal opportunities
for leadership at all levels of decision-making in political, economic and 68
public life
5.c Adopt and strengthen sound policies and enforceable legislation for the
promotion of gender equality and the empowerment of all women and girls 68
at all levels
6.3 By 2030, improve water quality by reducing pollution, eliminating

dumping and minimizing release of hazardous chemicals and materials, halving
89
the proportion of untreated wastewater and substantially increasing recycling
and safe reuse globally
6.4 By 2030, substantially increase water-use efficiency across all sectors

and ensure sustainable withdrawals and supply of freshwater to address
87
water scarcity and substantially reduce the number of people suffering
from water scarcity
6.a By 2030, expand international cooperation and capacity-building

support to developing countries in water- and sanitation-related activities
86 and 95
and programs, including water harvesting, desalination, water efficiency,
wastewater treatment, recycling and reuse technologies
SDG Description of SDGs targets Page SDG Description of SDGs targets Page
7.2 By 2030, increase substantially the share of renewable energy in the 12.2 By 2030, achieve the sustainable management and efficient use
90 90
global energy mix of natural resources
12.4 By 2020, achieve the environmentally sound management of chemicals

7.a By 2030, enhance international cooperation to facilitate access to clean and all wastes throughout their life cycle, in accordance with agreed
energy research and technology, including renewable energy, energy efficiency international frameworks, and significantly reduce their release to air, water 81
41, 42 and 43
and advanced and cleaner fossil-fuel technology, and promote investment in and soil in order to minimize their adverse impacts on human health and the
energy infrastructure and clean energy technology environment
8.2 Achieve higher levels of productivity of economies through diversification, 12.5 By 2030, substantially reduce waste generation through prevention,
technological upgrading and innovation, including through a focus on high value 43 81
reduction, recycling and reuse
added and labor-intensive sectors
12.6 Encourage companies, especially large and transnational companies,
8.5 By 2030 achieve full and productive employment and decent work for all to adopt sustainable practices and to integrate sustainability information 3
women and men, including for young people and persons with disabilities, and 68 into their reporting cycle
equal pay for work of equal value
12.b Develop and implement tools to monitor sustainable development
8.6 by 2020 substantially reduce the proportion of youth not in employment, impacts for sustainable tourism that creates jobs and promotes local culture 93
93
education or training and products
8.7. Take immediate and effective measures to eradicate forced labor, end
modern slavery and human trafficking and secure the prohibition and
102 13.2 Integrate climate change measures into national policies, strategies
elimination of the worst forms of child , including recruitment and use of child 80 and 90
and planning
soldiers, and by 2025 end child labor in all its forms
8.8 Protect labor rights and promote safe and secure working environments for
72, 75, 78, 79
all workers, including migrant workers, in particular migrant women, and 14.7. By 2030, increase the economic benefits to small island developing
and 103
persons in precarious employment States and least developed countries from the sustainable use of marine
93
resources, including through sustainable management of fisheries,
8.9. By 2030, devise and implement policies to promote sustainable tourism aquaculture and tourism
93
that creates jobs and promotes local culture and products
15.1. By 2020, ensure the conservation, restoration and sustainable use of
9.4 By 2030, upgrade infrastructure and retrofit industries to make them terrestrial and inland freshwater ecosystems and their services, in particular
sustainable, with increased resource-use efficiency and greater adoption of 34, 81, 82, 86 88
forests, wetlands, mountains and drylands, in line with obligations under
clean and environmentally sound technologies and industrial processes, with and 90 international agreements
all countries taking action in accordance with their respective capabilities
15.2 By 2020, promote the implementation of sustainable management of all
10.2 By 2030, empower and promote the social, economic and political types of forests, halt deforestation, restore degraded forests and 101
inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion 68 and 93 substantially increase afforestation and reforestation globally
or economic or other status
16.1 Significantly reduce all forms of violence and related death rates
72 and 74
10.3 Ensure equal opportunity and reduce inequalities of outcome, including everywhere
by eliminating discriminatory laws, policies and practices and promoting 52
appropriate legislation, policies and action in this regard 16.2 End abuse, exploitation, trafficking and all forms of violence against and
95
torture of children
11.4 Strengthen efforts to protect and safeguard the world's cultural and
98 16.5 Substantially reduce corruption and bribery in all their forms 52
natural heritage
11.6 By 2030, reduce the adverse per capita environmental impact of cities, 16.7 Ensure responsive, inclusive, participatory and representative decision-
78 and 79
including by paying special attention to air quality and municipal and other 80, 88, 90 and 94 making at all levels
waste management
16.b Broaden and strengthen the participation of developing countries in the
103
institutions of global governance
GRI Standards Content Summary
GRI 102-54, 102-55
This report has been prepared in accordance with the GRI Standards: Essential option.
Global Global
GRI Standard Disclosure Page and/or link OmissIon SDG GRI Standard Disclosure Page and/or link OmissIon SDG
Compact Compact
GRI 101: Fundamentals 2016 GRI 101: Fundamentals 2016

Standard contents Standard contents
GRI 102: Profile Strategy
Standard
102-1 Name of the 102-14 Statement from
Content 3 and 11 - - - 6 and 8 - - -
Organization senior decision-maker
2016
102-2 Activities, brands, 102-15 Key impacts,
11 and 82 - - - 54
products and services risks and opportunities
102-3 Location of the Ethics and integrity

11 and 135 - - -
headquarters 102-16 Values,
102-4 Location of principles, standards and 52 - 10 16
11 - - - norms of behavior
Operations
102-5 Ownership and 102-17 Mechanisms
11 and 49 - - - for advice and concerns 52 and 53 - 10 16
legal form
about ethics
102-6 Markets served 36 - - -
Governance
102-7 Scale of the
11, 12, 14 and 61 - - - 102-18 Governance
organization 49 and 51 - - -
structure
Gender of outsourced employees
102-8 Information on 102-22 Composition of
and Type of work (full or part-
employees and other 64 and 106 6 8 the highest governance 50
time), since we do not manage
workers body and its committees
this information
102-9 Supply chain 105 - 2.8 - 102-23 Chair of the
50
highest governance body
102-10 Significant
changes to the Stakeholder engagement
6, 8 and 11 - - 16
organization and its 102-40 List of
supply chain 56 - - -
stakeholder groups
102-11 Precautionary 100% of employees
80 - - -
Principle or approach 102-41 Collective are covered by
- 3 8
102-12 External bargaining agreements collective bargaining
39 - - - agreements (Brazil).
Initiatives
102-13 Participation in 102-42 Base used
56 - - - for Identifying and
associations 56 - - -
selecting stakeholders
for engagement
Global Global
Compact Compact
GRI 101: Fundamentals 2016 Topics

Standard contents GRI 200 Series Economic Series
102-43 Approach to Economic performance
56 - - -
Stakeholder Engagement
Market presence
102-44 Key topics and
GRI 103: 103-1 Explanation of
concerns raised during 3 - - -
Management the material topic and its 4 - - -
engagement
approach 2016 boundary
Reporting practice
103-2 The management
102-45 Entities included approach and its 63 - - -
in the consolidated 107 - - - components
financial statements
103-3 Evaluation of the
62 - - -
102-46 Defining report management approach
content and topic 3 - - -
GRI 202: Market 202-1 Ratios of In 2018, no
boundaries
presence 2016 standard entry level wage employee was
- 6 1, 5, 8
102-47 List of material by gender compared to identified below the
3, 4 and 5 - - -
topics local minimum wage local minimum wage.
102-48 Restatements of 60, 72, 81, 82 Indirect Economic Impacts
- - -
information and 115
102-49 Changes to Management the material topic and its 5 - - -
list of topics and topic No alterations - - - approach 2016 boundary
boundaries
102-50 Reporting period 3 - - - approach and its 92 - - -
components
102-51 Date of most
3 - - -
recent report 103-3 Evaluation of the
92 - - -
management approach
102-52 Reporting Cycle 3 - - -
GRI 203: Indirect 203-1 Investment
102-53 Contact point
economic impacts in infrastructure and 93
for questions relating to 135 - - -
2016 services
the report
Purchase practices
102-54 Claims of
reporting in accordance 120 - - - GRI 103: 103-1 Explanation of
with the GRI Standards Management the material topic and its 5 - - -
102-55 Content index 120 - - -
102-56 External
3 and 132 - - - approach and its 103 - - -
verification warranty
components
Global 103-3 Evaluation of the
GRI Standard Disclosure Page and/or link OmissIon SDG 103 - - -
Compact management approach
Topics GRI 204: Buying 204-1 Proportion
Practices 2016 of spending on local 105 - - 12
GRI 200 Series Economic Series
suppliers
Economic performance
Anti-corruption
Management the material topic and its 16, 47 and 54 - - -
approach and its 16, 47 and 54 - - -
approach and its 52 - - -
components
components
16 and 54 - - - 103-3 Evaluation of the
management form 52 - - -
management approach
GRI 201: Economic 201-1 Direct economic
Performance 2016 value generated and 108 - - 5, 8, 9
distributed
Global Global
Compact Compact
Topics Topics
GRI 200 Series Economic Series GRI 300 Environmental Series Standards
Economic performance Water
GRI 205: Anti- 205-2 Communication GRI 103: 103-1 Explanation of
corruption 2016 and Training in Anti- Management the material topic and its 4 - - -
52 - 10 16
Corruption Policies and approach 2018 boundary
Procedures
205-3 Confirmed approach and its 80 and 86 - - -
cases of corruption and 52 - 10 16 components
measures taken
80 and 86 - - -
GRI 206 Anti-Competitive Behavior Standards management form
GRI 103: 103-1 Explanation of GRI 303: Water 303-1 Water interaction 6, 9, 11,
87 and 89 - 7, 8, 9
Management the material topic and its 52 2018 as a shared resource 15
303-2 Management of
6, 9, 11,
103-2 The management water discharge related 87 - 7, 8, 9
15
approach and its 52 impacts
components
6, 9, 11,
303-3 Water withdrawal 109 - 7, 8
103-3 Evaluation of the 15
52
management form
6, 9, 11, 6, 9, 11,
303-4 Water discharge 110 8, 9
GRI 206: Anti- 206-1 Legal actions 15 15
Competitive for anti-competitive
52 Issuances
Behavior behavior, anti-trust, and
monopoly practices. GRI 103: 103-1 Explanation of
GRI 300 Environmental Series Standards
Materials
GRI 103: 103-1 Explanation of approach and its 80 and 90 - - -
Management the material topic and its 4 - - - components
80 and 90 - - -
103-2 The management management approach
GRI 305: Emissions 3, 12,
components 305-1 Direct (scope 1)
2016 91 - 7, 8 13, 14,
GHG emissions
103-3 Evaluation of the 15
80 - - -
management form
305-2 Indirect emissions
3, 12,
GRI 301 - Materials 301-1 Materials used by of greenhouse gases
109 - 7, 8 8, 12 91 - 7, 8 13, 14,
2016 weight or volume (GHG) from energy
15
acquisitions (scope 2)
301-2 Recycled input
109 - 8, 9 8, 12
materials used 3, 12,
305-3 Other indirect
91 - 7, 8 13, 14,
Energy (scope 3) GHG emissions
15
305-4 Greenhouse gas
Management the material topic and its 4 - - - 91 - 8, 9 14, 15
emissions (GHG) intensity
305-7 NOx, SOx and
103-2 The management 3, 12,
other significant air 112 - 7, 8
approach and its 80 and 90 - - - 14, 15
emissions
components
Waste
80 and 90 - - -
management approach GRI 103: 103-1 Explanation of
GRI 302 - Energy 302-1 Energy
7, 8, 12, approach 2016 boundary
2016 consumption within the 91 - 7, 8, 9
13
organization 103-2 The management
approach and its 80 and 81 - - -
302-2 Energy
7, 8, 12, components
consumption outside the 91 - 8, 9
13
organization 103-3 Evaluation of the
80 and 81 - - -
management approach
7, 8, 12,
302-3 Energy intensity 91 - 8, 9
13 GRI 306: Effluents 306-2 Waste by type
82 and 111 - 7, 8, 9 9, 12
and Waste 2016 and disposal method
GRI Standard Disclosure Pacto
Global Global
GRI Standard Disclosure Página
Page e/ou link
and/or link Omissão
OmissIon ODS
SDG GRI Standard Disclosure Page and/or link OmissIon SDG
Global
Compact Compact
Tópicos Materiais
Topics Topics
GRI 300 Standards Série Ambiental
GRI 300 Environmental Series Standards GRI 400 Series Social Standards
Environmental compliance GRI 403: Saúde 403-4 Employee
e Segurança no participation,
Trabalho 2018 consultation and
Management the material topic and its 52 - - - 79 1 8, 16 8, 16
communication on
occupational health and
103-2 The management safety
403-5 Worker training
components
on occupational health 74 - 3, 8 3, 8
103-3 Evaluation of the and safety
52 and 80 - - -
management approach
403-6 Promotion of
78 1 3, 8 3, 8
GRI 307: 307-1 Non-compliance worker health
Environmental with environmental laws 112 - 8 16
403-7 Prevention
Compliance 2016 and regulations
and mitigation of
Environmental Evaluation of Suppliers occupational health and
77 1 3, 8 3, 8
safety impacts directly
linked by business
relationships
Information by gender of
103-2 The management 403-9 Work-related
113 outsourced workers, as we do - 3, 8
approach and its 103 - - - Injuries
not manage the information.
components
Training and education
103 - - -
management approach GRI 103: 103-1 Explanation of
GRI 308:
308-1 New suppliers approach 2016 boundary
Environmental
that were screened using 104 2, 8, 9 5, 8, 16 5, 8, 16
Evaluation of 103-2 The management
environmental criteria
Suppliers 2016 approach and its 63 and 65 - - -
components
GRI 400 Series Social Standards
Employment 63 and 65 - - -
management approach
GRI 404: Training 404-1 Average hours
and Education of training per year per 113 - 6 4, 5, 8
2016 employee
404-2 Programs for
upgrading employee skills
components 65 - 6 8
and transition assistance
103-3 Evaluation of the programs.
63 - - -
management approach
404-3 Percentage of
GRI 401: 401-1 New employee Turnover Rate, as there is no employees receiving
112 6 5, 8
Employment 2016 hires and turnover management of this information. regular performance 65 - 6 5, 8
and career development
Occupational Health and Safety
reviews
Diversity and equal opportunities
approach 2018 boundary GRI 103: 103-1 Explanation of
components 103-2 The management
72 - - - components
management approach
GRI 403: 403-2 Hazard 65 and 68 - - -
management form
Occupational identification, risk
73 - 8 8
Health and assessment and incident GRI 405: Diversity 405-1 Diversity of
Safety 2018 investigation and equal governance bodies and 114 - 6 5, 8
opportunity 2016 employees
403-3 Occupational
79 - 8 8
health services 405-2 Ratio of basic Base salary and remuneration
salary and remuneration 115 of the CEO category, as it is 6 5, 8, 16
of women to men confidential information
Global Global
Compact Compact
Topics Topics
GRI 400 Series Social Standards GRI 400 Series Social Standards
Non-discrimination Human rights assessment
GRI 103: 103-1 Explanation of GRI 103: 103-1 Explanation of
Management the material topic and its 52 - - - Management the material topic and its 5 - - -
approach 2016 boundary approach 2016 boundary
103-2 The management 103-2 The management
approach and its 52 - - - approach and its 52, 102 and 103 - - -
components components
103-3 Evaluation of the 103-3 Evaluation of the
52 - - - 52, 102 and 103 - - -
management form management approach
GRI 406: Non- 406-1 Incidents of GRI 412: Human 100% of Nexa's
discrimination discrimination and 53 6 5, 8, 16 5, 8, 16 rights assessment 412-1 Operations that operations are
2016 corrective actions taken 2016 have been subject to subjected to
- 1 -
human rights reviews or human rights
Freedom of association and collective bargaining
impact assessments related analyses or
GRI 103: 103-1 Explanation of assessments.
412-2 Total number
of employee training
103-2 The management hours regarding human
approach and its 102 and 103 - - - rights or procedures
components related to human rights
52 and 103 - 1 -
matters material to
102 and 103 - - - the Organization's
management approach
operations, including the
GRI 407: Freedom 407-1 Operations and percentage of trained
of association suppliers in which the employees
and collective right to freedom of 104 5 8, 16 8, 16
Local communities
bargaining 2016 association and collective
bargaining may be at risk GRI 103: 103-1 Explanation of
Child labor
components
approach and its 102 and 103 - - - 92 - - -
management approach
components
GRI 413: Local 413-1 Operations
103-3 Evaluation of the 2, 4, 5,
102 and 103 - - - Communities 2016 with local community
management approach 8, 10,
engagement, impact 93 - 1
11, 12,
GRI 408: Child 408-1 Operations and assessments and
14, 16
Labor 2016 suppliers at significant 8, 10, development programs
104 5 8, 10, 16
risk for incidents of child 16
Social assessment of suppliers
labor
Forced or compulsory labor
GRI 103: 103-1 Explanation of approach 2016 boundary
103-2 The management components
components 103 - - -
management approach
102 and 103 - - - GRI 414: Supplier 414-1 New suppliers
management approach
Social Assessment that were screened using 104 - 2 5, 8, 16
GRI 409: Forced or 409-1 Operations and 2016 social criteria
Compulsory Labor suppliers with significant
8, 10,
2016 risk for the occurrence 104 - 4
16
of forced or compulsory
labor
Global Global
Compact Compact
Topics Topics
GRI 400 Series Social Standards Mining sector
Socio-economic compliance In 2018, there was
MM6 Number and
a conflict with the
GRI 103: 103-1 Explanation of description of significant
population of San
Management the material topic and its 52 - - - conflicts related to land
Juan de Milpo, in - - -
approach 2016 boundary use and customary rights
the Pasco region of
of local communities and
103-2 The management Peru, related to land
indigenous peoples
approach and its 52 - - - use.
components
MM8 Number (and We do not have
103-3 Evaluation of the percentage) of artisanal or small-
52 - - -
management approach operational units where scale mining
small-scale and artisanal areas. For any new
GRI 419: Socio- 419-1 Non-compliance
mining (ASM) occurs, project or change - - -
economic with laws and regulations
what are the associated in the operation
Compliance 2016 in the social and
115 - 10 16 risks and the actions of the units, our
economic area with
taken to manage and systemrequires a
respect to products and
mitigate those risks risk assessment.
services
MM9 Places where
Mining sector
resettlements occurred,
MM1 Quantity of land the number of families
There were no cases
(owned, leased or settled in each, and - 1, 2 -
of resettlement.
managed for production how their livelihoods
115 - 7, 8 -
or extraction activities) were affected in these
that was altered or has processes
already been restored
MM2 Total number
and percentage of
areas identified with MM10 Number and
the need to implement percentage of operations
116 - 7, 8 -
Biodiversity Management with plans for the 116 - - -
Plans (PGBs) and the closure of activities
number of areas with (decommissioning plan)
implemented plans
MM3 Total quantities
of sterile, tailings
82 - 7, 8, 9 -
and sludge and their
associated risks
MM4 Number of strikes There were no
and work stoppages strikes during a
- - -
lasting more than one period greater than
week per country 7 days
MM5 Total number of
operations located in
territories of indigenous
peoples or adjacent to No Nexa operations
them, and number and are located on
- - -
percentage of operations indigenous or
or units where there adjacent lands.
are formal agreements
with communities of
indigenous peoples
Letter of External Assurance ■■ planning the work, taking into consideration the Non-financial data is subject to more inherent
materiality and the volume of quantitative and limitations than financial data, due to the nature and
qualitative information and the operating and internal diversity of the methods used to determine, calculate and
control systems that were used to prepare the estimate this data. Qualitative interpretations of the
information included in Nexa’s 2018 Annual Report; relevance, materiality, and accuracy of the data are subject
to individual assumptions and judgments. Furthermore, we
Independent auditor’s limited assurance report on information related ■■ understanding the calculation methodology and the did not consider in our engagement the data reported for
procedures adopted for the compilation of indicators prior periods, nor future projections and goals.
to sustainability included in the Annual Report for 2018 through interviews with the managers responsible for
the preparation of the information; The preparation and presentation of sustainability
indicators followed the criteria of the GRI-Standards and,
■■ applying analytical procedures to quantitative therefore, were not designed to assure compliance with
To the Board of Directors and Stockholders information and making inquiries regarding the laws and social, economic, environmental or engineering
Nexa Recursos Minerais S.A. qualitative information and its correlation with the regulations. However, those standards require the
São Paulo - SP indicators disclosed in the information included in the presentation and disclosure of possible cases of non-
Annual Report for 2018; and compliance with regulations to avoid sanctions or
significant fines. Our assurance report should be read
■■ comparing the financial indicators with the financial and considered in this respect, in the context to the
Introduction in accordance with those standards, including the application statements and/or accounting records. selected criteria (GRI Standards).
of the Brazilian Quality Control Standard (NBC PA 01) and,
We have been engaged by Nexa Recursos Minerais S.A. therefore, the maintenance of a comprehensive quality
(“Nexa’’ or “Company”) to present our limited assurance control system, including policies documented and Conclusion
report on the compilation of sustainability information procedures on compliance with applicable ethical The limited assurance engagement also included
included in Nexa’s 2018 Annual Report for the year ended requirements, professional standards and legal and procedures to assess compliance with the guidelines and Based on the procedures performed, described
December 31, 2018. regulatory requirements. criteria of the Global Reporting Initiative (GRI Standards) herein, no matter has come to our attention that causes
applied in the compilation of the sustainability information us to believe that the information included in the Annual
Additionally, those standards require that the in the Annual Report for 2018. Report for 2018 of Nexa Resources S.A. has not been
Responsibilities of the Company’s management engagement be planned and performed to obtain limited compiled, in all material respects, in accordance with the
assurance that the information included in the 2018 We believe that the evidence we obtained is sufficient Global Reporting Initiative (GRI Standards).
The management of Nexa is responsible for the Annual Report, taken as a whole, is free from material and appropriate to provide a basis for our limited assurance
preparation and fair presentation of the information misstatements. conclusion.
included in the Annual Report for 2018, in accordance
with the Global Reporting Initiative (GRI Standards) and A limited assurance engagement conducted in
for such internal control as it determines is necessary to accordance with the Brazilian standard NBC TO 3000 Scope and limitations
enable the preparation of information free from material and ISAE 3000 mainly consists of making inquiries of São Paulo, April 9, 2019
misstatement, whether due to fraud or error. management and other professionals of the entity involved The procedures applied in a limited assurance
in the preparation of the sustainability information, as well engagement are substantially less detailed than those
as applying analytical procedures to obtain evidence that applied in a reasonable assurance engagement, the
Independent auditor’s responsibilities enables the issue of a limited assurance conclusion on the objective of which is the issuance of an opinion on the PricewaterhouseCoopers
information taken as a whole. A limited assurance sustainability information included in the Annual Report Contadores Públicos Ltda.
Our responsibility is to express a conclusion on the engagement also requires the performance of additional for 2018. Consequently, we are not able to obtain CRC 2SP023.173/O-4
information included in the Annual Report for 2018 based on procedures when the independent auditor becomes aware of reasonable assurance that we would become aware
our limited assurance engagement carried out in accordance matters that lead the auditor to believe that the information of all significant matters that might be identified in
with the Technical Communication CTO 01 - “Issuance of taken as a whole might present significant misstatements. an assurance engagement, the objective of which
an Assurance Report related to Sustainability and Social is the issue of an opinion. If we had performed an Eliane Kihara
Responsibility”, issued by the Federal Accounting Council The procedures selected are based on our understanding engagement with the objective of issuing an opinion, Contadora CRC 1SP212.496/O-5
(CFC), based on the Brazilian standard NBC TO 3000 - of the compilation and presentation of the sustainability we might have identified other matters and possible
“Assurance Engagements Other than Audit and Review”, also information included in the 2018 Annual Report, other misstatements in the sustainability information in the
issued by the CFC, which is equivalent to the international aspects affecting the engagement and our analysis of areas 2018 Annual Report. Accordingly, we do not express
standard ISAE 3000, “Assurance engagements other than which might potentially present significant misstatements. an opinion on this information.
audits or reviews of historical financial information”, issued The following procedures were adopted:
by the International Auditing and Assurance Standards Board
(IAASB). Those standards require that we comply with ethical
and independence requirements and other responsibilities
Forward-looking Statements Corporate Information
This report contains certain forward-looking information and forwardlooking Board of Directors Credits
statements as defined in applicable securities laws (collectively referred to in this ■■ Luis Ermírio de Moraes – Chairman
report as “forward-looking statements”). All statements other than statements of ■■ Daniella Dimitrov General coordination:
historical fact are forward-looking statements. Forward-looking statements involve ■■ Diego Cristóbal Hernandez Cabrera
known and unknown risks, uncertainties and other factors which may cause the Department of Management, Sustainability, Strategic
■■ Eduardo Borges de Andrade Filho
actual results, performance or achievements of Nexa to be materially different Planning and Market Intelligence: Felipe Guardiano
from any future results, performance or achievements expressed or implied by the
■■ Edward Ruiz
forward-looking statements. These forward-looking statements include estimates, ■■ Ivo Ucovich Financial and Investor Relations Department:
forecasts, and statements as to management’s expectations with respect to the ■■ Jane Sadowsky Rodrigo Menck
business and operations of the Company and mining production and smelting ■■ Jean Simon
sales, Capex and Opex related to exploration and development of projects. ■■ João Henrique Batista de Souza Schmidt Department of Sustainability: Benedito
Fernando Dario
Forward-looking statements are necessarily based upon a number of factors
and assumptions that, while considered reasonable by management, are inherently Executive Board Investor Relations Department: Roberta Pimphari Varella
subject to significant business, economic and competitive uncertainties and ■■ Tito Martins – President and CEO Nexa
contingencies. Statements concerning future production costs or volumes are ■■ Arlene Heiderich Domingues – Vice President Coordination: Aricely Lamontanha e Luiz Perez
based on numerous assumptions of management regarding operating matters and of Human Resources and Institutional Relations
on assumptions that demand for products develops as anticipated, that customers ■■ Felipe Guardiano - Vice President of Sustainability Teams: Sustainability, Corporate Communication and
and other counterparties perform their contractual obligations, that operating and and Strategic Planning Investor Relations
capital plans will not be disrupted by issues such as mechanical failure, unavailability ■■ Jones Aparecido Belther – Senior Vice President
of parts and supplies, labor disturbances, interruption in transportation or utilities, Mineral Exploration and Technology We appreciate the support and cooperation of the
adverse weather conditions, and that there are no material unanticipated managers and other colleagues involved in the corporate
■■ Leonardo Nunes Coelho - Senior Vice President Mining
variations in the cost of energy or supplies. and industrial areas of Nexa Resources, for information
■■ Rodrigo Menck - Senior Vice President of Finance
calculation and analysis.
and Group CFO
We assume no obligation to update forward-looking statements except
■■ Mauro Boletta - Senior Vice President Smelting
as required under securities laws. Further information concerning risks and Text writing and editing: Editora Contadino
uncertainties associated with these forward-looking statements and our
■■ Ricardo Porto - Senior Vice President of Sales, GRI Consulting: Deloitte Touche Tohmatsu
Supply & Logistics and Director President Nexa Peru
business can be found in our public disclosures filed under our profile on Audit of the GRI Indicators: PwC Auditores Independentes
Sedar (www.sedar.com) and on Edgar (www.sec.gov). ■■ Valdecir Botassini - Senior Vice President Project Translation: S
teve Yolen (inglês), Sylvia Gómez and
Development and Execution Artigas Belhot (espanhol)
Photos: Nexa Image Bank, Pisco Del Gaiso
Addresses GRI 102-3 Graphic Design: fmcom
Infocharts: Felix Reiners
Headquarters
26-28 Rue Edward Steichen, 2º andar
L- 2540 - Luxembourg
Tel.: +352 28 26 3727 Comments, suggestions, doubts or criticisms regarding
the content, as well as our operations and initiatives in
Corporate Offices Brazil and abroad, can be sent through the following
Brazil channel: [email protected] GRI 102-53
Rua Luís Carlos Berrini, 105, 3º andar
04571-010 – São Paulo – SP
Tel.: +55 (11) 3405-4499
Peru
Av. San Borja Norte 523
San Borja – Lima
Tel.: +51 (511) 710-5500
Investor Relations:
[email protected]

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Annual Report

We have adopted the The financial indicators follow the Materiality

Integrated Reporting Council Standards (IFRS) while social and

interest by shareholders The material aspects of

2 Annual Report Nexa 2018 Annual Report Nexa 2018 3

Where the Involvement Where the Involvement

4 Annual Report Nexa 2018 Annual Report Nexa 2018 5

6 Annual Report Nexa 2018 Annual Report Nexa 2018 7

“ All the innovative and state-of-the-art technology is being applied in our

8 Annual Report Nexa 2018 Annual Report Nexa 2018 9

10 Annual Report Nexa 2018 Annual Report Nexa 2018 11

10,616 thousand 2,435 thousand

330 thousand 277 thousand

Cajamarquilla Três Marias Juiz de Fora

Cerro Lindo Pasco (El Porvenir Vazante Morro Agudo

45 thousand Mining and processing Smelters Mineral exploration Offices

12 Annual Report Nexa 2018 Annual Report Nexa 2018 13

US$ 2.5 billion

US$ 1.2 billion 4%

Project (Brazil), with production More than

(Rum of Mine) More than

14 Annual Report Nexa 2018 Annual Report Nexa 2018 15

We want to be globally perceived as an intelligent Being intelligent means innovating through

16 Annual Report Nexa 2018 Annual Report Nexa 2018 17

Value Capturing Value Creation Value Created Shared Value

Human Capital – Our Values and Beliefs, our development and

Intellectual Capital - We stimulate innovation and the

18 Annual Report Nexa 2018 Annual Report Nexa 2018 19

20 Annual Report Nexa 2018 Annual Report Nexa 2018 21

To assure sustainable growth in Continuous improvement of competitiveness

benefits of smelter-mine integration, continuously

22 Annual Report Nexa 2018 Annual Report Nexa 2018 23

24 Annual Report Nexa 2018 Annual Report Nexa 2018 25

The processing Planned job generation:

13 years 26.2 million investment for the project:

proved and probable

26 Annual Report Nexa 2018 Annual Report Nexa 2018 27

30% ineração Rio Aripuanã Ltda.

28 Annual Report Nexa 2018 Annual Report Nexa 2018 29

■■ VIA - Support for the Children and

7. Logistics and integrated sales

2. Dry tailings disposal

3. Use of constructed wetlands

6. High degree of automation

30 Annual Report Nexa 2018 Annual Report Nexa 2018 31

32 Annual Report Nexa 2018 Annual Report Nexa 2018 33

Mining We also are highlighting the improvement of the geo-

34 Annual Report Nexa 2018 Annual Report Nexa 2018 35

36 Annual Report Nexa 2018 Annual Report Nexa 2018 37

During 2018, we strengthened the guidelines and initiatives that will

38 Annual Report Nexa 2018 Annual Report Nexa 2018 39

40 Annual Report Nexa 2018 Annual Report Nexa 2018 41

42 Annual Report Nexa 2018 Annual Report Nexa 2018 43

Information Security - We implemented a Cybersecurity Program with networks in underground mines

Selected Technological architecture

Reduced purchasing and inventory costs using

44 Annual Report Nexa 2018 Annual Report Nexa 2018 45

We have published a Corporate Governance Manual, based on our purpose

46 Annual Report Nexa 2018 Annual Report Nexa 2018 47

Our governance structure is composed of the Shareholders’ Meeting, the

Nexa Shareholder’s Meeting

Nexa Board of Directors

48 Annual Report Nexa 2018 Annual Report Nexa 2018 49

(From the left:)

João Henrique Batista de Souza Schmidt

Eduardo Borges de Andrade Filho

50 Annual Report Nexa 2018 Annual Report Nexa 2018 51

52 Annual Report Nexa 2018 Annual Report Nexa 2018 53

We introduced the Risk Management Report in

54 Annual Report Nexa 2018 Annual Report Nexa 2018 55

Meetings | Sectorial Face-to-face meetings | 8

56 Annual Report Nexa 2018 Annual Report Nexa 2018 57

Production of metal contained in concentrate (thousand tonnes)

Zinc Copper Lead

Vazante 140.8 - 1.2

Our smelters delivered excellent performances, with production remaining

Sales of smelter products (thousand tonnes)

Metallic Zinc Zinc