Volcan investing $250 mln for growth, exploration

LIMA May 18 (Reuters) - Peruvian miner Volcan (VOL_pb.LM), the world's No. 4 producer of zinc and silver, plans to invest up to $250 million for expansion and exploration, company officials said at an industry conference on Tuesday.

Volcan sees its 2010 zinc output at 700,000 tonnes of concentrate and silver production stable at 21 million ounces.

The company expects to lift its silver output by 4 million to 5 million ounces after opening a new plant this year or next year, the officials said.

They added that the company's Trapiche nickel project should start work in the second half of 2010, with daily output at 150 tonnes.

Volcan also plans to start the expansion of its Cerro de Pasco mine late this year or next year. (Reporting by Patricia Velez and Teresa Cespedes; Writing by Terry Wade; Editing by Marguerita Choy)