Peru Buenaventura sees lower '10 Yanacocha output

LIMA Oct 30 (Reuters) - Peruvian precious metals miner Buenaventura (BUEv.LM) (BVN.N) said on Friday it sees 2010 output at Yanacocha -- one of Latin America's largest gold mines -- falling roughly 500,000 ounces to 1.5 million ounces.

The mine, which is run jointly by Buenaventura and U.S.-based Newmont Mining Corp (NEM.N), is expected to post gold sales of around 2 million ounces this year.

It reported sales of 1.8 million ounces in 2008.

"Yanacocha -- let's say half a million ounces reduction in production for 2010 -- will be partially compensated by all these projects," Chief Executive Roque Benavides said on a conference call with investors.

Yanacocha's production is expected to fall as the miner gets into lower ore grades.

The company's La Zanja gold project, which Buenaventura also shares with Newmont, is forecast to churn out some 100,000 ounces per year once running.

Buenaventura has previously said La Zanja could be operational by July 2010.

Tantahuatay, Buenaventura's second gold development underway, is slated to start production in 2011 and is also forecast to produce some 100,000 ounces of gold annually.

Peru is the world's sixth-largest gold producer. (Reporting by Dana Ford; Editing by Christian Wiessner)