Copper, molybdenum boost Peru's October mining output

Thursday, December 1, 2016

Peru's mining production rose 21.6% in October as companies increased output at new mines and thanks to expansions, the government said in a preliminary report.

At the same time, manufacturing, which is tracked a month earlier, was up 2.65% in September, Peru's statistics office said in a statement.

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Copper production jumped 39.0%, while silver rose 2.22% and molybdenum 37.7%. Iron ore output increased 18.8% at sole producer Shougang Hierro Perú despite a strike, according to the agency. Hudbay Minerals, Hochschild Mining, Freeport-McMoRan and China Minmetals have all started up projects over the past two years.

Gold production dropped 0.96% due to declining output at Newmont Mining's Yanacocha mine, while lead slid 0.62% as production fell at mines operated by Volcan and Trevali Mining. The agency did not report zinc or tin output.

Peru's exports rose for a fourth month, by 12.1% to US$3.353bn in October as commodities exports led by metals gained 17.2% to US$2.388bn, the office said. Imports increased 2.33% to US$3.289bn as capital goods imports climbed 0.31% to US$1.073bn.

The construction industry contracted by 16.5% as completion of public works slowed by 32% due to cuts in spending by local and regional governments.

President Pedro Pablo Kuczynski, who took office July 28, has pledged to fast track US$25bn in delayed infrastructure projects. Peru's economy is expected to expand 4% in 2016 and 4.8% in 2017 compared with 3.3% last year, according to the finance ministry.