Barrick (TSE:ABX), Newmont (NYSE:NEM), Gold Fields (NYSE:GFI) Expanding Mining Operations in Peru

Barrick (TSE:ABX) (NYSE:ABX), Newmont (NYSE:NEM) and Gold Fields (NYSE:GFI) all reiterated their commitment to plans to continue expanding existing projects in Peru, or to launch new mines in the South American country.

Barrick Gold is looking to expand the life of their Lagunas Norte mine, by going under the oxide ore to tap into the sulphide deposits. Barrick also continues to actively explore the country for new opportunities, as well as look at their existing gold mining projects as well.

Barrick has been able to mine their Lagunas Norte gold at a low cost of $138 an ounce.

Newmont (NYSE:NEM) executive vice- president Guy Lansdown, said they should produce from between 750,000 ounces to 810,000 ounces of gold from between $360 an ounce to $400 an ounce at their Yanacocha mine, which they have a majority stake in.

The Minas Conga project is on course to produce about 700,000 ounces of gold in 2010 at an estimated cost of $300 to $400 an ounce. There is a lot of copper at this project too. It should be fully operational by 2014 or 2015, said Lansdown.

Two projects Gold Fields is high on in Peru is its Cerro Corona mine and its Chucapaca project.

At Cerro Corona, the company should be able to produce about 400,000 ounces of gold in 2010 at a cash cost of around $300 an ounce.

The Chucapaca project will begin construction sometime in the next two and a half to three years.

The goal of Gold Fields, according to their CEO, is to produce about 1 million ounces of gold there on an annual basis.


Peru is the No. 6 country in the world for gold production.