Peru Gold Output Drops On Govt Restriction

World’s fifth largest gold producer Peru’s gold production dropped nearly 15 per cent in the first three quarters of the year to 101,146kg due to a government crackdown on illegal gold miners in the Amazon jungle.

The South American nation’s zinc, tin and molybdenum production also dropped in the first three quarters of the year while copper, silver, lead, iron ore, tungsten and cadmium increased.

Peru’s energy and mines ministry said zinc production dropped 4.9% to 967,236t, while tin output at Minsur (Peru’s only producer) fell 3.5% to 16,887t and Molybdenum slid 0.2% to 12,409t.

Copper output gained 2.6% to 1.03Mt on rising production at Southern Copper (+4.4%) and Glencore's Antapaccay mine (+8.1%) and the addition of 43,869t in accumulated output at Chinalco's recently opened $3.5 bn Toromocho mine.

Silver output climbed 4.8% to 2.8Mkg as Volcan started up its Alpamarca mine, while lead production rose 3.9% to 202,650t as Milpo's Atacocha unit and Glencore's Los Quenuales mine increased production.

Iron ore rose 13.4% to 5.71Mt despite a three-week strike at Peru's lone iron ore mine Shougang Hierro Perú, the ministry said. Tungsten rose 52.7% to 52t, while cadmium production at Votorantim Metais' Cajamarquilla refinery gained 7.2% to 558t.

Minerals account for about 60% of Peru's total exports. Peru is the world's third-largest copper, zinc and tin producer and fifth-largest gold producer.