Peru Copper, Gold Miners Will Boost Output This Year

Source:

"Peru is the world's third-biggest producer of copper, zinc and tin, No. 5 in gold and No. 1 in silver."

Peru's mining companies will produce more copper, gold and silver this year in a bid to offset slumping prices, Finance Minister Luis Valdivieso said.

Peru, where companies mine eight major ores, as well as minerals such as cadmium and indium, is also benefiting from diversified metals production as gold and silver prices have performed better than copper, zinc and lead, Valdivieso said in a Jan. 14 interview at the ministry in Lima.

"It's not true to say Peru is going to suffer dramatically just because commodity prices have fallen," Valdivieso said. "The impact will be on metals prices, not volume, which is growing."

Peru is bracing for a drop in revenue this year as a global recession erodes demand for the Andean nation's commodities. The country increased exports fourfold since 2001 to an estimated $31 billion last year as commodity prices surged.

Peru is the world's third-biggest producer of copper, zinc and tin, No. 5 in gold and No. 1 in silver. Copper, zinc, lead and tin prices have fallen by at least 28% in London since July 3, when the Reuters/Jefferies CRB Index reached a record high. Gold has fallen 14% and silver is down 43% in New York trading since July 3.

Copper futures for March delivery fell 3.4 cents, or 2.3%, to $1.4535 a pound on the New York Mercantile Exchange's Comex division. Gold futures for February delivery fell $1.50, or 0.2%, to $807.30 an ounce in New York while silver dropped 3.5 cents, or 0.3%, to $10.44 an ounce.

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