By Marco Aquino
LIMA, Peru (Reuters) - Newmont Mining Corp. (NEM.N: Quote, Profile, Research, Stock Buzz) sees gold output at Yanacocha, South America's No. 1 gold mine, gradually recovering to 2 million ounces within five years, reversing the recent downward production trend, its regional vice-president for South America said on Wednesday.
Carlos Santa Cruz, speaking at the Reuters Latin American Investment Summit in Lima, Peru, said he saw Yanacocha gold output this year at 1.6 million ounces of gold.
He blamed lower grade ore and lagging production projects at the mine for a recent decline in output from what the company earlier said was output of 2.6 million ounces in 2006 and of 3.3 million ounces in 2005.
However, he said that thanks to new investments, he saw gold output rising to 1.7 million ounces in 2008 and 2 million ounces within five years.
"Yanacocha aims in the medium term to stabilize production at around 2 million ounces (a year)," he said. "To do this, we are undertaking a series of exploration projects and developing new projects which will materialize in the next five years."
New investments included a $250 million gold milling processing plant due to enter operations next January.
"We are investing $20 million annually in exploration," he added.
Denver-based Newmont, the world's No. 2 gold producer, owns a 51.35 percent stake in Yanacocha, located in Cajamarca, a northern Peruvian region bordering Ecuador. Continued...
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