(In Nov. 28 item, in 5th paragraph corrects time period to at
least five years, from less than five years.)
By Marco Aquino
PARACAS, Peru Nov 28 Peruvian miner Hochschild
plans a $350 million bond issue to fund its expansion
in Peru as well as a project in Chile, company CEO Ignacio
Bustamante said on Thursday.
Hochschild - which produces gold and silver in Peru,
Argentina and Mexico - hopes to increase its silver output by 50
percent from the current 20 million ounces a year.
"We are beginning to work on a bond issue, for about $350
million," Bustamante said at a business conference in the
southern city of Paracas. He gave no date for the issue.
Hochschild plans to invest $372 million in its Inmaculada
silver mine project in Peru, which is under construction and is
due to come on stream in 2015 producing between 11 and 12
million ounces a year, he said.
The company plans to invest $1 billion in its Volcan gold
project in Chile, which will take at least five years to come on
stream, Bustamante said.
A company spokesman in London said Volcan is a five to
Hochschild has 34 exploration projects underway despite
moves to reduce costs due to the fall in precious metal prices
that cut its profits in the first half of 2013.
"We have taken steps to optimize cash flow and significantly
cut production and administrative costs," he said.
(Editing by Anthony Boadle, Gunna Dickson and Marguerita Choy)