Peru’s gold, silver and copper output fall in January 2013—Mining Ministry

Peru’s Ministry of Energy and Mines reported increased production of iron, lead and zinc in the first month of this year.

Author: Dorothy Kosich

Peru’s Ministry of Energy and Mines reported Monday the country’s gold production plunged 25.12% in January, as total silver production declined 7.27% and total copper output dipped 4.41% during the same period.

However, the ministry also noted that iron ore production was up nearly 13%, while zinc output increased 8.83% and lead was up 6.15% during the first month of this year.

In the first month of this year, Peru’s gold production was 11,762,163 grams (378,162 troy ounces), down from 15,708,384 grams (505,036 troy ounces) in January 2012. Minera Yanacocha reported a 25% decrease in gold production in January 2013.

The country’s silver production was 266,981 kilograms (8,583,638 troy ounces) during the first month of the year, 7.27% lower than the 287,918 kilograms (9,256,778 ounces) of silver production reported in January 2012.

Peru’s copper production was reported at 93,469 metric tons in January of this year, a 4.41% drop from the same period of 2012.

The Directorate of Mining Promotion of the ministry’s mining department noted that zinc production in January 2013 was 111,308 metric tons, up 8.83% from 102,280 metric tons of zinc output in January 2012.

Peru’s lead production was 19,837 metric tons in January 2013, a 6.15% increase compared to January 2012 lead output total of 18,689 metric tons.

The ministry reported that the country’s iron ore production for the first month of this year was 589,902 long tons, up 12.91% from 522,433 long tons for January 2012.

Source: Miniweb

New projects in Peru to add $3.6 billion to overall mining investment for 2013

New mining projects in Peru will attract over $3.6 billion in investments this year, adding to the overall industry forecast of $10 billion, said Wednesday the president for the country’s National Society of Mining, Oil and Energy (SNMPE), Eva Arias.

The South American nation’s extractive sector, which accounts for some 60% of the economy, saw investments for $8.5 billion last year and is expected to bring $53 billion over the next decade, added Arias.

According to LPBnews (in Spanish), mining investment jumped 18% last year compared to 2011 despite large-scale protests against exploration and extraction activities that swept the country in 2012.

SNMPE warned in September last year that, as a result of non-stop anti-mining protests in different regions of the country, investors had started looking for greener pastures and so mining investment in the South American nation was expected to fall.

Although that didn’t happen, the body said Peru did fall to third place from second in the list of world’s top copper and silver producers.

Xstrata confirms Las Bambas spend of US$5.2bn

Xstrata plc said that the estimated cost of its 400,000t/y Las Bambas copper project in Peru would be US$5.2bn.

The estimate reconfirms its prediction in August 2012, which was a 7% increase on a previous assessment.

Xstrata is close to completing a US$33 billion deal that will see it taken over by Glencore International plc. The only remaining hurdle is approval by the Chinese regulator.

Analysts at Liberum Capital said the Las Bambas disclosure should allay any fears of a “capital expenditure blowout”.

“Nevertheless, we don’t rule out modifications to the project following the capital allocation review which we expect to follow merger completion.”

Las Bambas is now in the full construction phase having committed almost 65% of the project’s construction capital cost by the end of December 2012, Xstrata said.

It could start producing 400,000t/y of copper from 2015 for at least the first five years, it added.

“Las Bambas represents the next major stage in Xstrata Copper’s Peruvian development plans that will result in combined annual production levels [including its Antapaccay project] in the country of around 700,000t of high margin copper from 2015,” said Charlie Sartain, chief executive of Xstrata Copper.

Newmont investing US$150mn in Conga this year but won't build mine without community support - CFO

Newmont Mining (NYSE: NEM) plans to spend US$150mn in 2013 on its 51.35%-owned US$4.8bn Minas Conga gold-copper project in Peru's Cajamarca region, CFO Russell Ball said Thursday at CIBC's 16th annual Whistler Institutional Investor Conference.

On an attributable basis, the company looks to invest US$80mn in equipment, US$40mn in reservoir construction and about US$30mn for community and social costs.

"We have downsized significantly, and we are reviewing capital cost estimates as we go forward," Ball said.

Newmont voluntarily suspended construction on the Conga project in November 2011 following violent protests which prompted the government to declare two states of emergency in Cajamarca, but has continued work on related reservoirs.

"Until we can generate acceptable project returns and we get local community and government support, we're not going to progress the project," Ball confirmed.

Newmont continues to follow its "water first approach" announced in August 2012 to focus first and foremost on the construction of four reservoirs it has agreed to build in Cajamarca to give community members a year-round supply of water.

"We do have about 2,000 people on site today building some of the sediment structures and reservoirs, and finalizing the camp construction," Ball said.

Conga is one of the biggest investment projects in Peru's US$53.7bn mining portfolio. Average output over the first five years is estimated at 650,000-750,000oz/y gold and 160M-210Mlb/y (72,575-95,254t) copper, at cash costs of US$300-400/oz and US$0.95-1.25/lb, respectively.

Local miner Buenaventura (NYSE: BVN) and the World Bank's International Finance Corporation (IFC) also hold a 43.65% and 5% stake, respectively, in the project's operator Yanacocha.

Changing regulations delaying mining investments in Peru - Lumina Copper

Chinese joint venture Lumina Copper's US$2.5bn Galeno project in Peru's Cajamarca region has been delayed due to changing permitting regulations, and CEO Richard Graeme expects other mining companies are in the same boat.

"Government has been talking about [environmental impact study] approval changes and with that the information needed also changes, and who is going to review it, and I'm not exactly rushing to do things until I have some sort of direction," Graeme told BNamericas.

"To submit something to an agency which would not have the final say, I think would be ill-advised," he added.

The creation of a new government agency, Senace, in charge of evaluating environmental impact studies (EIS) has been the main cause for delay in completing Galeno's EIS, according to Graeme.

The company planned to submit Galeno's EIS in 2011, but community protests originally delayed submission and the company is now hesitant to submit the EIS during this time of transition. Lumina is now forecasting it will submit the EIS for evaluation in 2014-16.

"You must know who your audience is," Graeme said, adding that the uncertainty of whether or not the evaluation parameters will change has left the company in the dark.

Senace's creation was passed by congress in November 2012 and the agency is expected to begin operating in mid-2013. The related regulations and an implementation plan are due to be released next month.

Once regulation of the law is complete, the new agency will likely work together with the mines and energy ministry (MEM) for a period of time while the task of EIS evaluation is transferred over, according to former deputy environmental minister José de Echave.

Graeme expects the process to take no less than 14-15 months, and for that reason does not see the company submitting Galeno's EIS ahead of that timeframe.

According to the head of Peru's mines, oil and energy society SNMPE, a total of 20 mining projects planned for 2012-15, representing investments of over US$25bn, have been delayed due to social conflicts and bureaucracy.

The Galeno copper-gold-molybdenum porphyry property is expected to produce 144,000t/y of copper in concentrates over a 22-year mine life.

Lumina Copper is a 60:40 JV between China Minmetals and Jiangxi Copper.

Source: BNAmericas

HudBay sees lower copper output in 2013, Peru mine on track

HudBay Minerals said on Wednesday that copper production will be lower in 2013 following the closure of two of its Canadian mines.

The Toronto-based miner produced 39 587 t of copper concentrate in 2012, near the top end of its forecast of 35 000 to 40 000 t, and expects 2013 copper output of 33 000 t to 38 000 t.

HudBay also said its $1.5-billion Constancia copper development in Peru remains on track for first output in late 2014 and commercial production in the second quarter of 2015.

The company will spend some C$901-million on construction and development at Constancia in 2013, with its total capital spending budget for the year set at C$1.24-billion.

Edited by: Creamer Media Reporter

Minera IRL gets community nod for Peru gold project

Following the approval by the Ollachea community general assembly of the environmental impact assessment (EIA) for Minera IRL’s Ollachea gold project, in Peru, the company on Friday said it has now submitted the EIA to Peruvian authorities for assessment.

Minera IRL said it based the EIA on its recently completed Ollachea feasibility study and expects to receive a development permit by the middle of 2013.

"We have received outstanding support from the Ollachea community with a general assembly unanimously approving the EIA thus fulfilling the first requirement of the permitting process,” Minera IRL executive chairperson Courtney Chamberlain said.

The project involves a 1.1-million ton a year underground mine and conventional gold processing plant to produce an average of 113 000 oz of gold a year at full capacity. Building the project would carry a price tag of $177.5-million and a life-of-mine cash operating cost of $499/oz.

Operations are scheduled to start early in 2015.

The company has completed comprehensive environmental baseline studies over the past three years and the information gleaned from these was incorporated into the details of the projected mine, processing and infrastructure plans to evaluate the environmental impact of the operation.

The Ollachea mine would be an underground mine with reduced surface disturbance and impact. The process tailings will be filtered and dry-stacked, further reducing the environment footprint and rehabilitation will blend with the local environment.

A water treatment plant will ensure that all water releases comply with the rigorous Peruvian standards and the company added that careful attention has been given to the key aspect of socio-economic impacts, including planned sustainable development projects.

The project developer said it had used, internationally recognised environmental guidelines in all scenarios to reduce impacts.

The company’s Toronto-listed stock traded at 82 Canadian cents apiece on Friday afternoon.

Edited by: Creamer Media Reporter

Peru’s copper, silver production up; gold, moly fall in Sept

Peru’s molybdenum production fell by half in September 2012 as lead and zinc output improved, says the country’s mining ministry.

Author: Dorothy Kosich

Peru’s Ministry of Energy and Mines reported copper production increased 9.58% in September while iron ore was up 81.55% and silver increased 8.65%.

The ministry reported copper production was up 5.46% during the period of January to September 2012 from 898,875 metric tons from January to September 2011 to 947,922 metric tons. For September 2012 copper production was 113,615 metric tons, up 9.58% from 103,680 tons metric for September 2011.

The increased copper output was attributed to higher production from Sociedad Minera El Brocal, Compania Minera Antamina and Compania Minera Milpo.

Iron ore production for September 2012 was reported at 892,478 long tons (906,799 metric tons), up 81.55% from 491,580 long tons (499,498 metric tons). For the period from January to September 2012, Peru’s iron ore production totaled 5,371,234 long tons (5,457,425 metric tons), up 2% from 5,266,475 long tons (5,350,985 metric tons) during the same period of January to September 2011.

Peru’s silver output increased by 3.65% in September 2012 from 282,348 kg fine (9,077,699 troy ounces) in September 2011 to 292,677 kg fine (9,409,784 ounces). Increased silver production for September of this year was reported at Minera Argentum, Cerro Manager and Compania Antamina.

For the period from January to September 2012, the mining ministry reported cumulative silver production of 2,588,775 kg (83,231,050 ounces), 2.55% higher than 2,524,488 kg (81,164,174 ounces) of silver output reporting during the same period of last year.

Gold production for September 2012 was reported at 12,822,724 grams (412,260 troy ounces), down 9.12% from the 14,108,776 grams (453,607 ounces) reported in September 2011. Gold production for September of this year declined at Minera Laytaruma and Minera La Zanja.

During the period from January to September 2012, Peru reported total gold production of 124,273,608 grams (3,995,489 ounces) up 0.17% than the same period of 2011 for total production of 124,068,705 grams (3,988,901 ounces).

The mining ministry reported zinc production of 108,810 metric tons for September of this year, up 15.69% from 94,058 metric tons of production for September 2011. Increased production at Minera Antamina, San Ignacio de Morococha and Ancash Nyrstar was reported in September 2012.

For the period from January to September 2012, Peru reported total zinc output of 974,924 metric tons, up 2.29% from 953,076 metric tons of zinc production reported during the same period of last year.

Peru’s lead production fell by 4.12% from 20,578 metric tons in September 2011 to 19,730 metric tons in September of this year. The decrease was attributed to lower production at Empresa Administradora Cerro, Minera Atacocha and Minera Santa Luisa.

From January to September of this year, Peru reported total lead output of 188,442 metric tons, up 10.88% from 169,951 metric tons of lead production reported during the same period of 2011.

The mining ministry reported molybdenum production plunged 50.6% from 2,167 metric tons in September 2011 to 1,071 metric tons in September 2012. Peruvian moly is mined by Southern Peru Copper.

For the period from January to September 2012, Peru’s moly output declined 7.19% from 13,644 metric tons from January to September 2011 to 12,663 metric tons.

The mining ministry reported that Peru’s sole tin producer, Minsur, reported a 21.26% decline in production in September 2012 from 2,707 metric tons in September 2011 to 1,071 metric tons.

For the first nine months of this year, Peru reported total tin production of 19,522 metric tons, down 9.92% from 21,672 metric tons during the same period of last year.

Source: Mineweb

Trevali to start Peruvian plant commissioning early in 2013

Zinc-focused miner Trevali Mining reported development at its Santander zinc/lead/silver mine, in west-central Peru is in the final phase with initial mining and milling operations scheduled to start early in 2013.

The company said all critical mill and processing infrastructure was now in place and underground development continued to progress, with 1.8 km of ramp completed.

About 100 000 t of ore averaging 5.6% zinc, 0.65% lead and 1.65 oz/t silver has been stockpiled on the surface for processing when commissioning of the 2 000 t/d plant starts.

Trevali said all core site infrastructure is also complete and fully operational, including accommodation units, catering facilities, and various mine planning and site offices.

Construction of the project's 65 km transmission line to the national grid has also been completed and energising the power line is currently being coordinated with the Peruvian regulator in order to reduce disruptions with local end-users.

The company expected the Santander mine to access power from the Peruvian grid before the end of the year. Before this takes place, the site is being powered by the company's run-of-river power station at Tingo and supplemented by a combination of generators and excess power from a neighbouring mining unit.

Underground development has found several zones of potentially significant footwall satellite mineralisation sites that would require additional drilling and, depending on the results, might provide additional mill-feed.

The company’s Toronto-listed shares on Tuesday closed almost 2% higher at C$1.03 apiece.

Edited by: Creamer Media Reporter

Gold Fields weighs alternatives for Peru’s Chucapaca mine

Cecilia Jamasmie

South African miner Gold Fields (NYSE, JSE:GFI) revealed its initial plan to develop a gold deposit into an open-pit mine in isn't feasible.

The miner, world’s number 4 gold producer, is working on the nearly $1.2 billion Chucapaca gold project in a 51%-49% venture with local miner Buenaventura.

"The partners have studied the viability of a large open-pit operation capable of sustaining a 30,000 tonnes per day throughput. A first draft of the feasibility study has been completed and as a result of relatively high capital and operating costs this option would not have delivered acceptable project returns," the companies said in a joint press release.

Gold Fields said that future studies would focus on other options to develop the deposit, including underground mining or a combined model of open pit and underground.

Earlier this year, the South African company said it expected to start producing gold in Chucapaca in the second half of 2015, depending on negotiations with communities and regulatory permits.

Chucapaca has estimated resources of 7.6 million ounces of gold and equivalents.

Peru to resume talks on Newmont’s $4.8 billion Conga mine

Peru's government is considering resuming talks with opponents of the $4.8 billion Minas Conga copper and gold mining project in the northern region of Cajamarca, Environment Minister, Manuel Pulgar Vidal, said in a TV interview on Sunday night.

The authority added the regional president of Cajamarca, Gregorio Santos, should participate in the talks, as he has been one of the most vocal adversaries of the Conga project, leading the latest protests against it.

According to the minister, Catholic priests Miguel Cabrejos and Gaston Garatea will restart negotiations with all the parties involve with the controversial project, majority-owned by Newmont Mining Corp. (NYSE:NEM).

Minas Conga is being developed in the Cajamarca region of northern Peru by Minera Yanacocha, of which Newmont Mining, the world's number two gold producer, holds a 51.35% interest and Compañía de Minas Buenaventura a 43.65%. The IFC owns the remaining stake.

Newmont had said it hoped to begin production either in 2014 or 2015, generating between 155 and 235 million tons of copper a year at the site, provided it gets permission from the Peruvian government.

The U.S.-based miner had proposed four high altitude lake reservoirs be substituted with artificial lakes, which triggered massive strikes and protests that ended up forcing Newmont to suspend the project in November last year and the Peru’s government to declare a state of emergency in the area.

Political minefield

The contentious Conga, which was to begin production in early 2015, was designed basically as an extension of the Peru's Buenaventura's nearby Yanacocha, Latin America's largest gold mine, which is approaching the end of its life.

Conga is capable of producing up to 350,000 ounces of gold and 120 million pounds of copper per annum with a 19-year life of mine.

The project is the largest ever single private investment in the country and has turned into a political minefield for President Ollanta Humala’s administration, with many in the opposition and within his own party calling for drastic changes to his handling of recent protests.

But negative reactions to mining projects are not unusual in Peru. Large-scale protests against exploration and extraction activities have swept the country in recent years, making of social conflicts the main risk for investors in the local industry.

Peru’s extractive sector, which accounts for some 60% of the economy, is expected to bring the country $50 billion in future investment over the next decade.

Valley High Mining reports positive results from its Machacala Project

Valley High Mining Company today announced that it has received initial internal test results on the tailings pile at its Machacala Project located in the district of Carabamba, Julcan Province, La Libertad, Peru.

The average gold grade over the multiple tests on the tailings exceeded previous sampling in historical reports. The average silver grade of the multiple tests on the tailings came in less than findings in previous studies on the property.

Valley High CEO Andrew Telsey stated, "We were expecting a gold grade of around 1.2g/T, but the results came back with an average grade of 1.71g/T.

We were expecting a silver grade of around 2.44oz/T, but the results came back with an average grade of 1.84oz/T. Generally speaking, we were very pleased with these results."

The Company believes that the combination of all the sample results validated the premise that production of the tailings is economical and viable.

While no assurances can be provided, on the basis of the test results the Company believes it can recover approximately 85%+ of the gold and approximately 40--50% of the silver in the 210,000 tons of tailings with the plant it plans to put into operation.

Gold Fields says Peru openpit JV project not feasible

Gold Fields said more work was needed on the Chucapaca exploration project, which it is developing with joint venture (JV) partner Buenaventura, after a feasibility study found a 30 000 t/d openpit design not feasible.

A first draft of the feasibility study found that high capital and operating costs associated with an openpit operation would not be compatible with satisfactory project returns.

Gold Fields said in a statement on Wednesday that further study work would be required, which would focus on value-engineering the $1.2-billion project to achieve the expected returns.

The JV would analyse different options for mine development, including an underground or a combined openpit underground operation, as well as alternative throughput levels.

Attention would also be given to reestablishing exploration to add resource flexibility once the required permits were granted and optimising capital and project operating costs.

Gold Fields, which owns 51% of the Chucapaca JV, previously said it expected operations at the mine to start by the end of 2015.

Edited by: Mariaan Webb

Peruvian gold producer bulks up Colombia-focused junior exposure

Another South American miner takes an interest in Canadian juniors operating in Colombia following recent takeovers by AUX

Author: Kip Keen

As it pursues growth beyond Peru, Consorcio Minera Horizonte, a leading Peruvian gold producer, is bulking up on Canadian juniors with Colombian gold assets. After recently announced financings Consorcio Minera Horizonte (CMH) will own a majority of Antioquia Gold's outstanding shares and is set to buy a controlling stake in Batero Gold.

CMH started investing in Canadian juniors with a Colombia focus back in 2010. It began by striking a strategic alliance with Antioquia Gold, which owns the high-grade gold Cisneros project, as part of an initial private placement for 16.2 million shares @ C$0.20.

Since then, through notably lean times for junior financings, CMH's appetite for Antioquia Gold shares has remained strong. In subsequent private placements - the most recent in late October - CMH's position in Antioquia Gold has grown to 66.2 million common shares or 81.5 million shares outstanding, which represents a 54-percent interest in Antioquia Gold.

Now it has a second junior in its sights. Within a couple days of taking a majority stake in Antioquia Gold, it and Batero Gold inked a strategic alliance along with a C$20 million financing. In two private placements, subject to shareholder approval, CMH is to buy a 35-percent stake in Batero, giving it a controlling interest in a junior that owns the La Cumbre gold project.

"It's good for the company," said one analyst, familiar with Batero. The analyst echoed Batero's rationale for the deal, that the junior is getting a knowledgeable miner as a partner to help it push its La Cumbre gold project forward. La Cumbre is a multimillion ounce gold deposit that Batero has outlined as a low-grade bulk tonnage project with potential for heap-leaching.

The analyst, who preferred not to be named, also noted it was a "tough time for financings right now" and agreed with the notion Batero would have been hard pressed to do a better financing than the one it has put together with CMH. The financing with CMH, @ C$0.65, comes at a premium to Batero's average shareprice in October, though still falls far short of the shareprice heights Batero reached earlier this year before it released a multimillion ounce resource estimate in February.

After the resource came out, which disappointed analysts on grade, Batero's shareprice cratered from over C$2.50 to the C$0.50 range where it has traded ever since.

But clearly CMH sees potential in La Cumbre. Likely it, as Batero, has its eye on the possibilities for higher grade gold within La Cumbre's six million ounces in global resources. In the La Cumbre deposit, one of several comprising the wider resource, Batero has shown strong recoveries in oxide and low-sulfur transitional ore. (@ La Cumbre deposit Batero counts 1.5 million ounces gold @ 0.73 g/t gold at a 0.5 g/t Au cutoff in indicated resources and a further 2.3 million ounces @ 0.56 g/t Au in inferred resources.) Further, as previously noted in these pages, the deposit looks to have a nice shape for mining, were that day to come, with a strip ratio possibly in the 0.75:1 range.

Such points will not, of course, have escaped CMH.

And this point should not escape Colombia watchers. CMH's increasing interest in Canadian juniors follows recent takeovers of two Canadian juniors with a Colombia focus by Eike Batista's AUX, a Brazilian miner. Thus mergers and acquisitions of juniors in Colombia are for being driven not by Western firms, but South American miners looking to grow gold production.

Source: Mineweb

Buenaventura Q3 earnings lower, beats expectations

Peru-based precious metals miner Compañia de Minas Buenaventura has reported 11% lower year-on-year third-quarter net income, on weaker gold production.

The company’s net income was $185.6-million, compared with $208.7-million in the same period a year earlier, mainly the result of lower volumes of gold sold from the company’s operations and owing to lower silver and base metal prices, which hurt its earnings, as contractor expenses and supply costs rose during the period.

Buenaventura controlled 43.7% of Yanacocha, one of Latin America's biggest gold mines, and also owns an 18.7% interest in the copper mine Cerro Verde.

The company’s NYSE-listed shares closed on Wednesday at $35.76 apiece, having risen 1.94% in value.

Edited by: Creamer Media Reporter

Conga delay undermines Peru perception

The suspension of the Conga mining project – which would have been Peru’s largest foreign investment ever – is undermining the country’s perception among investors. However, Conga will likely go ahead as planned eventually, mining officials say.

“A case like this can affect investor perception of Peru,” says Pedro Martinez, chairperson of Peru’s National Mining Society, which groups all the leading mining companies in the country.

He adds that he also expects it to negatively impact the yearly ranking from the Fraser Institute. Peru ranks as the third-most attractive mining country in Latin America after Chile and Mexico on the latest Policy Potential Index from the institute.

The Conga gold mine was being developed by US-based Newmont Mining and local miner Buenaventura – the same companies that own Yanacocha, the world’s second-largest gold mine. Development of Conga was originally estimated at a cost of up to $4.8-billion, or the equivalent of 63% of what Peru received in total foreign direct investments last year.

Construction on Conga started in July 2011, but were suspended in November 2011 at the request of the Peruvian government following violent protests from antimining activists led by the head of the Cajamarca region, where Conga and Yanacocha are located. The opponents claim Conga will pollute the waters used by the local farmers for agriculture.

Construction was further delayed as the Peruvian government waited for an independent expert review of Conga’s previously approved environmental-impact assessment, which was handed in in April. The three experts confirmed the data used for the original approval.

However, in August the government of President Ollanta Humala announced that it would suspend the development. The decision came as a surprise after Humala had earlier taken a hard line against the protestors and had appeared to respect the expert findings.

Neither Newmont nor Buenaventura answered questions from Mining Weekly Online on the future of Conga or the delay’s impact on financials. Buenaventura referred to Newmont, which, in turn, sent a short statement on its general commitment to Peru.

However, in its latest yearly report for 2011, Newmont states that “any inability to continue to develop the Conga project or operate at Yanacocha could have an adverse impact on our growth if we are not able to replace its expected production… Should we be unable to continue with the current development plan at Conga, we may reprioritise and reallocate capital to development alternatives in Nevada, Australia, Ghana and Indonesia.”

According to Newmont’s 2011 annual report, $1-billion had been invested in Conga as of December 31, 2011. This year, it is investing $440-million, according to a separate fact sheet.

According to the same fact sheet, Newmont’s top priority now is developing the water reservoirs for Conga.

“The company will take a slower development approach – which is intended to foster a more suitable political and social environment – by focusing on the construction of reservoirs for downstream communities,” it says. “Construction on the Conga project will only continue if it can be done in a safe, socially and environmentally responsible manner with risk-adjusted returns that justify future investment.”

Once Newmont and Buenaventura finish the water developments, Martinez expects the Conga project to be back on track. “Once the reserve construction has finished, the population will realize that there is more and better quality water,” Martinez says.

Plans call for boosting water to help local farmers, he says.

“The change of perception is only a matter of time, during which the arguments from the radical opponents will remain without merit … and the Conga project will finally be approved,” Martinez says.

American Chamber of Commerce in Peru executive director Aldo Defilippi points out that the large mining companies are providing big benefits to areas with little or no Peruvian State infrastructure. They include well-paid jobs with insurance and special preferences at local banks.

Meanwhile, thousands of indirect jobs have been created. Those benefits stand in stark contrast to illegal miners, informal loggers, drug traffickers and terrorists that operate in Cajamarca.

“They prey; pollute; exploit the locals, including children; don’t provide any labour rights; don’t pay taxes; etc.,” he says. For them, formal mining companies are seen as a hindrance to their activities, Defilippi adds.

Notwithstanding the Conga delay, there are several juniors interested in Peru, according to Martinez.

“They understand that these problems are part of an unfortunate constant, but shouldn’t affect substantially the plans of new investors,” he says.

Edited by: Henry Lazenby

Latin Resources first holes hit substantial iron intersection at Mariela

Latin Resources has received preliminary drill assays from the Mariela Project showing the intersection of continuous iron mineralisation producing strong widths and grades of up to 55.7% iron from the first drill hole.

The assays were received from joint venture partner Junefield’s Peruvian subsidiary, Total Genius Iron Mining SAC, following analysis by SGS laboratories in Lima, Peru.

The agreement allows Junefield to earn up to 70% of the Mariela Project by funding all activities to the completion of a Bankable Feasibility Study, or to a total cost of US$35 million.

An intercept of 227.15 metres at 37.2% iron from 542.6 metres including 27.4 metres at 55.7% iron, that contained very low levels of sulphur and phosphorus, was returned from the first drill hole.

A second hole intersected multiple iron mineralised zones between 187 metres and 820 metres depth that range in thickness from 0.4 metres to at least 21.9 metres with grades ranging from 20% to 52% iron.

Eighteen individual samples of between 0.6 metres and 2.1 metres in thickness were selected for copper analyses from the first hole and ranged in grade from 0.01% to 0.46% copper, with a raw average of 0.19% copper.

Peru's mining, energy investment could surpass US$73.2b-Mining Minister

Peru is the "Land of Opportunity", particularly for potential investment in mining, natural gas, and power generation, says the nation's Energy and Mining Ministry.

The potential for mining and energy investment in Peru between 2011 and 2020 could surpass US$73.2 billion, Peru's Minister of Energy and Mines said this week.

Minister Jorge Merino Tafur told an audience of entrepreneurs from South America and the Arab countries that the mining and energy sectors have grown significantly in the past decade, growing from US$1.865 billion in 2001 to US$8.5 billion in 2011.

"We have potential planned mining investments up to US$53 billion, of which we are today developing over US$28 billion" in gold and copper projects, he noted.

The minister stressed the potential of Peru as an energy hub including the development of nearly 70,000 megawatts in hydropower capacity, including projects that will generate up to 30,000 MW of power in the medium term.

To this Peru can also add up to 22,450 MW of wind power generation, as well as 3,000 MW of solar energy, Merino Tafur observed.

The minister asked the Arab entrepreneurs to also consider other investment opportunities, such as construction of new pipelines, the development of a separation of ethane in natural gas project in Peru, a petrochemical project in the south, which would complement the proposed South Andean natural gas pipeline, as well other energy-related projects.

Merino Tafer observed that the country's proven natural gas resources total 12.7 Tcf [trillion cubic feet], while proven oil reserves so far contain 3 billion barrels.

Southern Copper to decide in January on Chancas project

Southern Copper will decide in January if it will go forward with its $1.2-billion Peruvian project Los Chancas, CE Oscar Gonzalez said on Monday.

He added that the company, one of the world's top copper producers, is pushing ahead with its investment program in Peru and Mexico despite the global downturn.

On the Los Chancas project, he said, "Once we have the feasibility study we'll decide if it's viable. We'll make this determination in January."

Southern Copper, controlled by Grupo Mexico, has said a prefeasibility study of Los Chancas showed mineralised resources of 355-million tons, with copper content of 0.62%, molybdenum of 0.05% and 0.039 g/t of gold.

Edited by: Creamer Media Reporter

Panoro Minerals awarded full ownership of Peruvian project

Peru-focused project developer Panoro Minerals on Thursday said an arbitration committee had confirmed that it had followed the required legal steps to cancel the Antilla joint venture (JV) agreement with Chancadora Centauro two years ago, and that it was the sole owner of the copper/molybdenum property.

Panoro CEO Luquman Shaheen told from Vancouver that the company would now move forward with a drilling programme on the property within a month, to further prove up the resource.

Shaheen said the company could in 2010 not internally finance the development of its two Peruvian projects, the Antilla project, and its flagship Cotabambas copper/gold/silver project. The company decided to enter into a JV with a partner to develop Antilla.

Under terms of the JV agreement, the privately held Centauro were to make cash payments of $8-million to the company and invest $17-million into the Antilla project in order to earn a 70% interest over a 30 month period.

Shaheen said Centauro at the time paid $1 million upon signing the accord, but the required payments of $4-million within 90 days and the final $3-million within 20 months never materialised. The $17-million investment was to be used to complete a bankable feasibility on the project.

Shaheen said bankable feasibility studies for both projects would now be simultaneously undertaken, funded internally by the company.

The Antilla project had an inferred resource of 154-million tons grading 0.47% copper and 0.009% molybdenum at a 0.25% copper cut-off. This provided for the property to hold 1.6-billion pounds of copper and 30-million pounds of molybdenum.

The company also recently updated the inferred resource at the Cotabambas project to 404.1-million tons grading 0.42% copper, 0.23 g/t gold and 2.84 g/t silver using a 0.2% copper-equivalent cut-off. This provided for 3.75-billion pounds of copper, three-million ounces of gold and 36.9-million ounces of silver.

The TSX-V-listed company’s stocks closed at 80 Canadian cents apiece on Thursday.

Edited by: Creamer Media Reporter