UPDATE 1-Peru gold output seen up 10 pct - industry group

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LIMA, May 20 (Reuters) - Peru's gold production is expected to rise by 10 percent this year as new mines start operating, the president of the gold committee at the country's mining chamber told a conference in Lima on Tuesday.

The world's No. 5 gold producer, Peru produced more than 170 million fine grams in 2007.

The gold committee president, Veronica Marsano, said the country's expected increase in output of the precious metal this year would mainly be due to the Cerro Corona project, being developed by South Africa's Gold Fields Ltd (GFIJ.J).

Cerro Corona, a $450 million gold and copper mine, is due to start production in the quarter ending in September and will initially produce about 400,000 gold equivalent ounces per annum and later average about 300,000 ounces a year.

"It'll be 10 percent for this year, that's the expectation," Marsano said. "We expect this tendency to continue in the coming years."

She also cited forecasts for higher production at the Yanacocha mine, Latin America's biggest gold mine.

In January, Minera IRL Ltd (MIRL.L)(IRL.LM) opened its Corihuarmi mine in Central Peru, which is expected to produce 35,000 ounces this year. (Reporting by Maria Luisa Palomino; Writing by Helen Popper; Editing by Terry Wade and Marguerita Choy) (helen.popper@thomsonreuters.com; + 54 11 4318-0655; Reuters Messaging: helen.popper.reuters.com@reuters.net))