Engineering & Mining Journal

AUG 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 66 of 107 E&MJ • AUGUST 2018 65 MINING IN PERU Precious Metals: The Challenge of Keeping Volumes Up Peru's main gold mines are maturing, and production will increasingly come from medium-sized operations Peru maintains a key position in precious metals mining and development. In 2017, it remained the world's sixth largest gold producer (and the largest in Latin America), while it was also the world's second largest silver producer, only after Mexico. Peru's gold production remained relatively stable and only recorded a 1.2% decrease year-on-year. Total output reached 4.86 million troy ounces, with Yanacocha contributing 535,700 oz. This still places the operation, located in Cajamarca, as the country's largest gold mine despite its continuous decline. The guidance for this year is around the half a million-ounce mark and, with the Quecher Main project, its life should be extended until 2027. Quecher Main, a US$250 million to US$300 million venture, will add new output from oxides starting next year, with expected production of 200,000 oz/y between 2020 and 2025. Yanacocha is a joint venture between Newmont, that operates the mine, Bue- naventura, and Sumitomo, that recently ac- quired a 5% stake. On top of its share of production at Yanacocha (43.65% of the total, or 233,400 oz), Buenaventura also had an additional attributable production of Peruvian mines offer extremely competitive margins. Pucamarca (pictured) had costs of less than $350/oz in 2017. Photo courtesy of Minsur.

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