Yanacocha (Quechua word for Black lake) is a gold mine in northern Peru, considered one of the biggest and most profitable in the world producing over US$7 billion worth of gold to date. The 251-square kilometer open pit mine is situated about 30 kilometers (14km straight line) north of Cajamarca, in high pampa, straddling the watershed. Yanacocha, is run by the Newmont Mining Corporation, a Denver, Colorado-based company that is the world’s largest gold mining firm. Newmont is the major shareholder together with Buenaventura, a Peruvian company.
Newmont eyes steady production at Peru gold mine
LIMA, Nov 12, 2009 - Newmont Mining Corp (NEM.N) said on Thursday it expects output at Yanacocha -- one of Latin America's largest gold mines -- to hold steady in the next few years, contradicting an earlier forecast made by its partner.
Yanacocha, run jointly by U.S.-based Newmont and Peruvian precious metals miner Buenaventura (BUEv.LM) (BVN.N), reported sales of 1.8 million ounces of gold last year.
"This year, we're going to have something similar to 2008 production ... and for the next few years, we're going to maintain levels of around 1.8, 1.9 million ounces," Carlos Santa Cruz, Newmont's vice president of South American operations, told reporters.
His statement conflicts with one made last month by Roque Benavides, Buenaventura's chief executive, who said he expected to see production at Yanacocha falling roughly 25 percent to 1.5 million ounces in 2010, as lower ore grades are explored.
Also on Thursday, Santa Cruz said Newmont has still not made a decision about whether to develop its Minas Conga copper-gold project in Peru, which it postponed because of the global economic and credit crunch.
The company had originally said it would announce a decision in the first quarter of 2009.
The development, which is thought to have equity gold reserves of more than 6 million ounces and roughly 1.7 billion pounds of copper, is located in the northern part of Peru, near the city of Cajamarca.
"The Minas Conga project is passing to the next stage of evaluation. We're going to take roughly 12 months more -- or 16 months more -- to make the final decision," said Santa Cruz.
According to Peru's mining ministry, the mine would require just over $1 billion to develop.
Peru, a major metals exporter, ranks sixth in the world in gold production and is No. 3 in copper. (Reporting by Marco Aquino; Writing by Dana Ford; Editing by David Gregorio).