MINES IN PERU

They are classified this way:

Surface mines in Peru"

Rio Huaypetue mine Santa Ana mine (Peru) Yanacocha

"Copper mines in Peru"

Mount Toromocho

Toquepala mine

"Gold mines in Peru"

Rio Huaypetue mine Yanacocha

"Silver mines in Peru"

Santa Ana mine (Peru) ROCK BRIDGE MINING : ( CHIMBOTE AND HUARAZ)

Production of Peruvian Mining

In 2006, the value of Peruvian minerals (metals, industrial minerals, and fuels) production amounted to $6.5 billion, compared with $5.1 billion in 2005. Mining and fuel production increased by 8.1% as a result of larger values of metals (7%) and fuel output (23%). The increase of mineral outputs (content) was mainly led by natural gas (77%), molybdenum (22%), gold (20%), crude oil (18%), and iron (8%), and to a lesser extent by silver and lead (4% each) compared with 2005 outputs. In 2006, metal prices were also driven upwards because of the higher consumption associated with increased world economic activity, such as in China, the United States, and other countries.[1] Metal production growth was mainly led by an increase in copper, iron, silver, and lead, which offset the decreased output of gold, molybdenum, and zinc. The hydrocarbon sectors output also increased owing to the increased extraction of natural gas at Aguaytia and Camisea. Crude oil output was expected to increase as the result of the 16 new oil exploration and production contracts signed in 2006.

Mineral Trade
Perus mining industry, which has consistently been the countrys major foreign exchange generator since 1997, accounted for almost 61.8% ($14.7 billion) of total export revenues of more than $23.8 billion in 2006 compared with 56.3% ($9.8 billion) of total export revenues of about $17.4 billion in 2005. In 2006, Perus total trade balance recorded a surplus of about $8.9 billion compared with $5.3 billion in 2005, which increased by almost 68% compared with 6.6% in 2005. Perus minerals sector had a trade surplus of $16.2 billion compared with $11 billion in 2005. In 2006, mining was the main exporting sector of the country. Price increases for zinc (136.5%), copper (82.6%), and gold (36%) played an essential role in the Peruvian trade balance. Almost 82% of the total minerals exported ($14.7 billion) were copper ($6 billion), gold ($4 billion), and zinc ($2 billion). Perus other mineral exports were molybdenum ($838 million), lead ($713 million), silver ($479 million), tin ($332 million), and iron ($256 million). Perus fourth major traditional export, petroleum and derivatives, amounted to $1.6 billion in 2006 compared with $1.5 million in 2005. Perus total mineral exports, which included petroleum and derivatives, amounted to more than 68% of its total exports in 2006. Total mineral imports, which were mostly petroleum and derivatives, however, increased by about 34.8% to $3.1 billion compared with $2.3 billion in 2005. Total imports increased by about 21.5% to $14.7 billion compared with $12.1 billion in 2005 and generated a surplus of $2.6 billion compared with $5.3 billion in 2005. In 2006, the United States (34%), China (11%), Chile (7%), Canada (6%), and Japan (5%) were Perus leading mineral consumers. The United States, China, and Chile were the main importers of gold, copper, and molybdenum, respectively. Peru sold about 6% of its exports to other members of the Mercado Comn Andino (ANCOM), whose members were Bolivia, Colombia, Ecuador, Peru, and Venezuela; about 3% was sold to the Mercado Comn del Cono Sur (MERCOSUR) countries of Argentina, Brazil, Paraguay, and Uruguay, and associate members Bolivia and Chile; and 15% was sold to other Latin American countries. Peruvian mineral exports could increase if the negotiations between ANCOM and MERCOSUR lead to a South American free trade agreement and owing to the free trade agreement signed recently (2006) between the United States and Peru.

Metals
Copper
Perus copper output (Cu content) in 2006 was about 1.05 million metric tons (Mt) compared with almost 1.01 Mt in 2005, an increase of almost 4%. The countrys copper metal exports in 2006 totaled about 986,600 metric tons (t) valued at $6 billion, compared with 984,200 t valued at $3.4 billion in 2005; this value was 76.5% higher than that of 2005 as a result of the copper price increase to $2.829 per pound of copper in 2006 from $1.549 per pound in 2005. Owing to Chinas increasing consumption of metals and minerals such as copper, which was expected to increase to 6 Mt by 2010 from 4 Mt in 2005, two Chinese companies, Baosteel Co., Ltd. (Baosteel) and Aluminum Corp. of China Ltd. (Chalco) were planning to have joint ventures with Latin Americas leading copper mining companies such as Companhia Vale do Rio Doce (CVRD) of Brazil, Corporacin Nacional del Cobre (Codelco) of Chile, and Sociedad Minera Cerro Verde S.A.A. of Peru. China Minmetals Corp. planned to invest in metals and minerals mainly in Brazil, Chile, and Peru. In 2006, Perus planned investments of $2.8 billion were expected in projects with advanced exploration and environmental assessment work, such as in Las Bambas ($1.5 billion) and Los Chancas ($1.3 billion) copper deposits located in the Department of Apurimac and owned by Xstrata plc. of Switzerland and Southern Copper Corp. a subsidiary of Grupo Mexico S.A. de C.V., respectively. Other investments in copper deposits included Rio Blanco Copper S.A.s Rio Blanco deposit located in the Department of Piura ($1.5 billion to produce copper by 2008), Per Copper Inc.s Toromocho deposit located in the Department of Junin ($1.5-$2.0 billion, reserves 1.6 billion metric tons), Southern Copper was planning to invest $600 million in additional exploration and to improve efficiencies in Cuajone and Toquepala copper mines, and Sociedad Minera Cerro Verde SA was planning to increase Cerro Verde Mines copper output to 300,000 metric tons per year (t/yr) from 100,000 t/yr with an investment of $890 million by 2006-07. Other mineral prospects included the San Gregorio zinc project of Sociedad Minera El Brocal S.A.A. located in the Department of Cerro de Pasco, the Minas Carachugo gold-and-silver project of Minera yanacocha S.R.L. (MyS) [Newmont Mining Corp. of the United States (51.35%), Compaa de Minas Buenaventura S.A.A. (43.65%), and World Bank International Finance Corporation (5%)] located in the Department of Cajamarca, and the Magistral copper-molybdenum-silver project of Inca Pacific Resources located in the Department of Ancash. Magistral is located in the same geologic trend as that of Compaa Minera Antamina S.A.s (CMA) Antamina base-metal. CMAs Antamina Mine was the leading copper concentrate producer in the country with a total output of 390,800 t in 2006 compared with 383,000 t in 2005. SPCC was the second leading producer of copper in the country with an output of 362,000 t in 2006 compared with 355,000 t in 2005. BHP Billiton Tintaya S.A. reported an output of 79,000 t of copper concentrate in 2006 compared with 78,300 t in 2005. SPCC reported 35,800 t of cathode copper from Toquepala, which was produced by solvent extraction-electrowinning (SX-EW). Copper metal output at its Ilo refinery located in the Department of Moquegua was 273,100 t compared with 285,200 t in 2005. Cerro Verdes SX-EW plant at the Cerro Verde copper mine produced 96,500 t of cathode compared with 93,500 t in 2005.

Gold
In 2006, gold output was 202.8 t compared with 208 t in 2005, a decrease of 2.5%. MyS produced 81.2 t compared with 103.2 t in 2005. Other leading gold producers were Minera Barrick Misquichilca S.A. (51.9 t), Madre de Dios S.A (15.8 t), Compaa de Minas Buenaventura S.A.A. (7.9 t), and Aruntani S.A.C. (6.5 t). Gold exports in 2006 totaled about 6,702.1 ounces valued at $4 billion compared with 7,036.8 ounces valued at $3.2 billion in 2005; this value was 25% higher than that of 2005 as a result of the gold price increase to $605 per troy ounce in 2006 from $445 per troy ounce in 2005. Gold recovered as a byproduct from the concentrates of Perus polymetallic mines amounted to 2.6 t. From the total gold output in 2006, large, medium, and small producers reported 187 t and an unknown number of placers and garimperos (informal individual miners) reported 15.8 t. Placers accounted for almost 8% of the gold produced in the country. The southeastern Andes have well known gold placers on the Inambari River and its tributaries. Placer gold was produced mostly in the Inca and the Mariategui Regions and from rivers and streams throughout the jungle. Goldfields Limited, the worlds fourth ranked gold producer, entered into a joint venture with Compaa de Minas Buenaventura S.A.A. to start operations in the Puquio gold project in the Department of Ayacucho in the third quarter of 2007. Goldfields Limited is also looking into the Cerro Corona gold project in the Department of Cajamarca.

Iron Ore
Shougang Hierro Per S.A.A. (a subsidiary of Chinas Shougang Corporation) continued to be Perus sole iron ore producer in the Marcona District, in the Department of Ica. Mine output increased to 4.8 Mt of iron content in 2006 from 4.6 Mt in 2005. The iron ore exports amounted to 6.7 Mt at a value of $256 million compared with 6.6 Mt at a value of $216.1 million in 2005, which was an increase of 18.5% in value compared with 2005. The domestic consumption amounted to 300,000 t of iron ore, which remained about the same level as that of 2005. Iron ore production increased in response to higher demand in China and other economies in the Asian region for construction and higher steel output, which had a positive effect on higher molybdenum production as well.[1] The Marcona Mine as of 2010 continued to be plagued by labor troubles but had ambitious plans for expanded production of 18 million tons of iron ore per annum by 2012.

Lead, Silver, and Zinc

In spite of higher demand for zinc by Asian countries and higher international prices in 2006, the Peruvian zinc industry produced 1.2 Mt of zinc in concentrates, which remained about the same level as that of 2005. Of the total output, the main producers contributions were, in order of tonnage, Volcan (232,645 t), Empresa Minera Los Quenuales S.A. (199,600 t), CMA (178,180 t), Compaa Minera Milpo S.A. (79,600 t), El Brocal (69,800 t), Empresa Administradora Chungar S.A.C. (62,230 t), Atacocha (59,800 t), and others (320,000 t). The countrys total silver content output increased to more than 3,471 t compared with 3,206 t in 2005. Peru, for the third time, surpassed Mexicos silver output of 3,000 t in 2006. In silver output, companies, such as Aruntani, El Brocal, Compaa de Minas Buenaventura S.A.A., and Volcan Compaa Minera S.A.A. were more active, and silver production was higher than last year because Minera yanacocha S.R.L. and medium-sized gold-silver mines exceeded their initial production goals. yanacocha increased its output mainly as a result of technological innovations in its gold-silver recovery process. Higher international prices allowed medium-sized mines and small producers to mine lower grade ores. Peru produced more than 313,300 t of lead in concentrates compared with about 319,400 t in 2005. Exports of zinc, lead, and silver were valued at about $2 billion, $713 million, and $479 million, respectively, compared with $805 million, $491 million, and $281 million in 2005, respectively. In 2005, Volcan was the first ranked zinc producer in the country with an output of 232,645 t of zinc, 65,540 t of lead, and 413.5 t of silver from its operations in the Cerro de Pasco property located in the Department of Cerro de Pasco, and the San Cristobal, Carahuacra, and Andaychahua base-metal mines located in the Department of Junin. Empresa Minera Los Quenuales S.A. was the second ranked zinc producer from its operations in Casapalca and Iscaycruz Mines, which produced 199,540 t of zinc, 21,600 t of lead, and 183.4 t of silver from the Iscaycruz, the Pachangara, and the yauliyacu Mines. CMA was the third ranked zinc producer from its operations in the Antamina Mine, which produced 178,180 t of zinc and 301.5 t of silver (Ministerio de Energa y Minas, 2007a). Refined metals were reported by Doe Run Peru (120,300 t of lead, 1,145 t of silver, and 41,000 t of zinc from the La Oroya complex); by Sociedad Minera Refinera de Zinc Cajamarquilla S.A. (31.5 t of silver and 134,240 t of zinc from the Cajamarquilla refinery); and by SPCC (119.2 t of silver from its refining operations in Ilo). Perus silver metal production increased to 1,300 t from 1,230 t in 2005. In the mining sector, the Grupo Votorantim Metais S.A. of Brazil acquired 99% of the Cajamarquilla refinery for about $210 million and was planning to increase its zinc output to 260,000 t/yr from 130,000 t/yr with an additional investment of $200 million by 2007-08.

Tin
Production from Minsurs San Rafael Mine located in the Maritegui Region was 38,470 t in concentrate in 2006 compared with 42,145 t in 2005. Minsurs tin smelting and refining operations in Pisco, located south of Lima, produced 40,500 t of metal compared with 36,700 t in 2005. Peru continued to be the leading tin producer in Latin America followed by Bolivia and Brazil. Minsur, which was the only fully integrated tin supplier in Peru, produced 15.5% of worlds output and exported 38,100 t valued at $332.1 million in 2006 compared with 36,900 t valued at $270.0 million in 2005.

Mineral Fuels
Coal
Perus largest coal deposits were at Alto Chicama located in La Libertad Region. Other coal deposits occur in the Cuenca del Santa in the Maran Region and the coal basins of Goyllarisquizga and Hatun Huasi in the Cceres Region of central Peru. In 2006, , Perus recoverable coal reserves were estimated to be 1.1 billion metric tons, and coal production was relatively small (about 29,535 t) compared with an estimated consumption of more than 1.3 Mt/yr.

Natural Gas and Petroleum

In 2006, Perus recoverable (proven and probable) and possible crude oil, liquefied natural gas (LNG), and natural gas resources were estimated to be 6,239,100,000 barrels (991,940,000 m3); LNG 1,373,800 bbl (218,420 m3); and natural gas 859 billion cubic meters (30.4 trillion cubic feet), respectively. The leading gasfields were the Aguaytia, which is located about 41 km west-northwest of Pucallpa and had proven reserves of 8.5 billion cubic meters (301 billion cubic feet) of gas and 9,000 bbl (1,400 m3) of natural gas liquids (NGL) and the Camisea gasfields in the Ucayali Basin with 250 billion cubic meters (8.7 trillion cubic feet), which included 600,000 bbl (95,000 m3) of NGL. Natural gas production increased to 1,775 million cubic meters from 1,517 million cubic meters in 2005 and was produced by Pluspetrol S.A. (59%), Aguaytia S.A. (22%), Petrotech del Per S.A. (8%), Petrleo Brasileiro S.A. (Petrobrs) (6%), and others (5%). Petrobrs through Petrobrs Energa S.A. acquired exploration and production rights for natural gas and petroleum in Lots 57 and X, respectively. The Camisea Project encompasses three segmentsUpstream, Transportation, and Distribution of natural gas from the Camisea field, which is located in the Ucayali Basin in the Department of Cusco. Under the license contract, the Upstream Consortium holds the rights to produce natural gas and liquids in block 88 for 40 years. Investments to develop and produce, transport, and distribute natural gas from the Camisea field were estimated as follows: the Upstream Project to develop and produce natural gas, $550 million; the Transportation Project to transport natural gas and liquids to Lima through pipelines, $820 million; and the Distribution Project for the distribution network in Lima, $170 million.