Bloomberg News

Newmont Will Keep Gold Output Stable at Yanacocha

March 24, 2008

Newmont Mining Corp. (NEM:US) plans to keep annual output at its Minera Yanacocha SRL unit, Latin America's largest gold mine, stable at 1.8 million ounces for several years, a spokesman said today.

In a bid to increase reserves, Denver-based Newmont will invest about $19.5 million this year to explore around the mine, in the northern Peruvian Andes, the company's regional legal manager, Javier Velarde, told Lima-based Radioprogramas.

``There aren't going to be large increases in production,'' Velarde said in comments confirmed by the company. ``It's a mature mine, where production will remain stable for several years.''

Protests for more jobs and local investment have prevented Newmont from increasing production, Velarde told the Lima radio broadcaster. Protesters seeking a greater share of record mining earnings have blocked mines operated in Peru by Newmont, Barrick and Minera Antamina in the past two years.

Newmont fell 51 cents, or 1.1 percent, to $45.46 at 4:15 p.m. in New York Stock Exchange composite trading. American depositary receipts of Buenaventura SA (BVN:US), a 44 percent partner in Yanacocha, fell $2.47, or 3.7 percent, to $64.96 in New York. One ADR represents one common share of Lima-based Buenaventura.

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

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.


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Companies Mentioned

  • NEM
    (Newmont Mining Corp)
    • $25.93 USD
    • 0.49
    • 1.89%
  • BVN
    (Cia de Minas Buenaventura SAA)
    • $11.62 USD
    • 0.13
    • 1.12%
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