Cajamarquilla Zinc Refinery Fire Raises Peru Supply Risk as Damage Remains Unclear

Nexa, Peru

Cajamarquilla zinc refinery fire has created uncertainty around Peruvian zinc supply after a transformer failure triggered a blaze at Nexa Resources’ refinery near Lima. The company has not yet determined the extent of damage or whether production has been affected.

Cajamarquilla zinc refinery fire was brought under control by Wednesday afternoon after starting at 6:49am local time. Nexa evacuated all employees from the affected area, while one worker and three contractors were injured.

Cajamarquilla zinc refinery fire matters because the site is one of Latin America’s key zinc refining assets. Cajamarquilla produced 345,300t of zinc metal in 2025, making any potential outage relevant to regional refined zinc availability.

The immediate market impact remains uncertain. Nexa is still assessing the damage, and the affected section of the plant has not been clearly identified.

Transformer Failure Puts Refinery Continuity in Focus

The fire began after a transformer at the plant failed, according to Peru’s grid operator. Transformer incidents can affect power supply, electrical systems and operating continuity, depending on the location and severity of the damage.

For a zinc refinery, stable power is critical. Electrolytic refining, casting and associated plant systems depend on reliable electricity and coordinated process control.

Nexa has not yet confirmed whether operations were disrupted. A market source said the company was still assessing the production impact.

The injury of workers and contractors also makes the incident a safety event first. Refinery accidents often trigger internal reviews, regulatory checks and equipment inspections before normal operating confidence can return.

If the fire is limited to electrical infrastructure and repairs are quick, the supply impact may be modest. If the damage affects key refinery systems, downtime could tighten refined zinc availability.

Zinc Market Watches for Output Impact

Cajamarquilla’s 2025 zinc metal output of 345,300t gives the site meaningful market weight. A prolonged disruption could affect customers that rely on Peruvian refined zinc supply.

Zinc metal is widely used in galvanizing steel, die casting, brass, chemicals and industrial manufacturing. Supply interruptions at major refineries can affect premiums, delivery planning and regional procurement decisions.

The incident comes at a time when zinc markets are already sensitive to smelter reliability and concentrate availability. Buyers will watch whether Nexa issues guidance on production losses, repair timelines or shipment delays.

For Peru, the refinery is also strategically important because it converts mined zinc units into higher-value refined metal. Any disruption would affect not only Nexa, but also the country’s downstream metals value chain.

The key issue now is transparency. Market participants need clarity on which units were affected, whether production continues, and how long any repairs may take.

The Metalnomist Commentary

The Cajamarquilla incident shows how refined zinc supply can be disrupted by plant-level infrastructure, not only mine output. Until Nexa confirms the damage and production status, buyers will treat Peru’s refined zinc flow with caution.