Peru Reports Gold, Iron, Tin, Moly Production up in October

Peru's Ministry of Energy and Mining reported Wednesday the production of iron ore, gold, tin, and molybdenum all increased in October 2011.

However, Peruvian copper, lead and zinc output all declined during the same period, the ministry reported.

Gold production was up 8.06% from 13,264,680 grams (426,470 troy ounces) in October 2010 to 14,334,275 grams (460,858 ozs) in October of this year.

La Zanja, Minera Barrick Misquichilca and Minera Titan all reported increased gold production in October, while Minas Buenaventura, Gold Fields La Cima and Minera Poderosa each reported production declines.

Cumulative gold production from January to October of this year is 137,370,265 grams (4,413,180 ozs), a 0.06% drop from the total gold production of 137,454,503 grams (4,419,264 ozs) for the same period of last year.

However, silver production only increased slightly by 0.84% from 302,448 kilograms (9,723,929 troy ounces) in October 2010 to 305,036 kilograms (9,807,135 ozs) during October 2011.

The result was explained due to increased production at Minera Punts and Compania de Minas Buenaventura. At the same time output dropped at Minera Los Quenuales, Pan American Silver SA Mina Quiruvilca and Compania Minera Ares, the ministry reported.

Cumulative silver production for the period from January to October of this year was reported at 2,823,971 kilograms (90,792,775 ozs), down 7.04% from the 3,037,780 kilograms (97,666,894 ozs) reported during the same period of last year.

Copper production in October 2011 dropped 7.43% from 111,547 metric tons in October 2010 to 103,257 metric tons.

The decrease in copper output was attributed to lower production at El Brocal, Cerro Verde and Antamina. Xstrata and Minera Milpo Tintaya reported higher production.

Total copper production for the period from January to October 2011 dropped 2.49% from 1,027,605 metric tons for the same period of 2010 to 1,002,059 metric tons.

Molybdenum production increased 2.99% from 1,528 metric tons in October 2010 to 1,574 metric tons in October 2011.

For the period from January to October of this year, moly production increased 15.01% from 13,232 metric tons for the first nine months of last year to 15,218 metric tons.

Peru's only tin mining company, Minsur, reported an increase of 5.81% from 2,417 metric tons in October 2010 to 2,558 metric tons in October 2011.

Total tin production from January to October of this year was reported at 24,230 metric tons, a 16.41% plunge from the 28,986 metric tons reported during the same period of last year.

Lead production plummeted 37% from October 2010 production of 20,256 metric tons to 19,978 metric tons of lead output for October 2011. The decrease was attributed to lower production at Los Quenuales, Pan American Silver Mina Quiruvilca and Minera Corona. Minera Raura, Catalina Huanca and Minera Santa Luisa each reported lead production declines.

Regarding the period from January to October of this year, lead production dropped 14.9% from 222,991 metric tons during the same period of 2010 to 189,764 metric tons.

Peru's zinc production for the month of October dropped 14.12% from the 124,456 metric tons reported in October 2010 to 106,878 metric tons. Production decreases were reported from Compania Minera Atacocha, Compania Minera Antamina and Volcan Compania Minera. The largest production increases were reported by Catalina Huanca Sociedad Minera and Compania Minera Milpo.

Cumulative zinc production from January to October 2011 was 1,059,461 metric tons, a 15.35% plunge from the 1,251,524 metric tons reported during the same period of last year.

Domestic iron ore production reported by Peru's only iron ore operation, Shougang Hierro Peru, in October grew 12.53% from 475,896 long tons (533,003 short tons) in October 2010 to 535,534 long tons (599,798 short tons).

Total Peruvian iron ore production from January to October of this year increased 15.8% from 5,010,262 long tons (5,611,493 short tons) for the same period of last year to 5,802,010 long tons (6,498,251 short tons).

Dorothy Kosich, Mineweb