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Companies / Entities
- Newmont Mining Corporation
- Gold Fields Limited
- Compañía de Minas Buenaventura S.A.A.
- Southern Copper Corporation
- Minera Yanacocha S.R.L.
Keywords
Zinc/Lead Mining | Gold/Silver Mining
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MeneamePeruvian miner Buenaventura's (NYSE: BVN) expansion and development projects will not be able to offset the effects on gold sales of a significant drop in production expected at its 43.7% owned Yanacocha mine in 2010, the company said Friday.
"We have other prospects. We are producing very well at Orcopampa. I think it is the crown jewel," CEO Roque Benavides said during a conference call to discuss Q3 results. Brownfield exploration is ongoing at Orcopampa.
The company also has 43% of the La Zanja project, which could enter production next year and will churn out 100,000oz/y when ramped up to full speed.
In addition Buenaventura is working to solve metallurgical problems at its Uchucchacua mine, where it is also looking to increase lead-zinc resources at depth and seeking higher grade silver areas to compensate for falling production. "We hope that in 2010 we can reverse this situation," said Benavides.
But these assets will only partially compensate for the drop at Yanacocha, which could amount to 1Moz next year, said Benavides. The mine, majority owned and operated by Denver-based Newmont (NYSE: NEM), produced 554,000oz gold in this year's Q3.
The Chucapaca gold-copper project would also help to offset Yanacocha's waning performance if and when it comes on stream. Four diamond drill rigs are turning at the project and partner Gold Fields (NYSE: GFI) is expected to complete investment of US$5.5mn in exploration by year-end.
"Probably by the end of the year we will have a better view of the resource there. We are very excited about the project," said Benavides.
TANTAHUATAY
Meanwhile, Buenaventura aims to begin a feasibility study for its 40%-owned Tantahuatay project next year and potentially start construction in late 2010 or 2011, said the CEO.
"We have been facing the normal problems with the local owners of the surface rights, but we are progressing," he said. Buenaventura exploration VP César Vidal said in September that surface rights were the "tricky" part of the project.
Production is slated to start in 2011.
Southern Copper (NYSE: PCU) holds 44% of the US$60mn Tantahuatay project, which is due to produce 80,000-100,000oz/y of gold for 10 years.
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