Bloomberg News

Peru Gold Output in May Rises 27% on Newmont Mine

July 19, 2006

Peru's gold production jumped by about one-quarter in May, the fastest growth since December, spurred by rising output at the country's two largest mines.

Gold production rose 27 percent to 18,051 kilograms in May on gains at Denver-based Newmont Gold Corp.'s Yanacocha mine and the mid-2005 start-up of Toronto-based Barrick Gold Corp. (ABX)'s Alto Chicama mine, the Energy and Mines Ministry said said in an e- mailed statement.

Copper output fell 2.1 percent to 81,520 tons, while tin fell 10.5 percent to 3,316 tons and lead fell 0.4 percent on declining ore grades. Silver and iron both rose by one-fifth, while zinc rose 0.4 percent and molybdenum rose 5.3 percent.

Peru is counting on $10 billion in mining exports this year to help the economy expand 5.5 percent and post a record $7 billion trade surplus. Peru is the world's fourth-largest copper producer, fifth-largest in gold and the biggest silver and tin producer.

Gold output rose by one-fifth to a record 208 tons in 2005. Barrick, which also operates the Pierina mine in the northern Andes, said in May Alto Chicama will produce 850,000 ounces, or 24.1 tons, of gold this year.

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net

To contact the editor responsible for this story: Laura Zelenko in New York at lzelenko@bloomberg.net


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