Sunday, March 25, 2012

Peru’s gold output hits 6-month high on gains by Newmont

Peru’s gold production reached 6-month highs on gains by Newmont Mining, one of the country’s top miners, Bloomberg reports.

Gold production climbed 13% to 15,116 kilograms according to a statement by the Energy & Mines Ministry; the data on other mined commodities was mixed:

Copper output fell 4.8 percent to 97,765 metric tons, a nine- month low, on declines at mines operated by Freeport-McMoRan Copper & Gold Inc. (FCX) and Xstrata Plc. (XTA) Zinc, tin, iron and molybdenum production all fell, while silver and lead gained.

Colorado-based Newmont (NYSE:NEM) is majority owner of Minera Yanacocha, which operates South America’s largest gold mine and owns the Minas Conga project, Peru’s biggest mining development requiring an investment of up to $4.8 billion.

Peru’s Prime Minister said in January that Conga will be developed as the government could end up with a “huge” compensation payment if the $4.8 billion mine does not go ahead.

Newmont stopped construction of the copper-gold project in November after violent protests in the poor Cajamarca region of northern Peru.