Yanacocha Continues As The Largest Latin America Gold Producer
DENVER, CO - In Peru, Newmont Mining Corporation holds a 51.35 percent interest in Minera Yanacocha S.R.L., which includes the mining operations at Yanacocha and the Conga project.
Located high in the Andes Mountains of Peru, Yanacocha is the largest gold producer in Latin America. With three active open pits, production has exceeded 26 million ounces since the mine opened in 1993. Although just 6 miles away from the city of Cajamarca, much work has been done to build roads and improve basic infrastructure for the operation in the area.
During the second quarter of 2011, Newmont╒s reported attributable gold production at Yanacocha was 175,000 ounces at cost of sales (CAS) of $545 per ounce. Gold production decreased 3% in the quarter from the prior year quarter due to lower leach placement at Yanacocha and La Quinua as a result of mine sequencing and lower equipment availability, partially offset by higher mill grade, throughput and recovery. Ore tons mined decreased 16% due to mine sequencing at El Tapado. CAS increased 40% in the second quarter of 2011 from 2010 due to lower production combined with higher waste mining, higher diesel prices and labor and royalty costs, partially offset by higher by-product credits and lower workers' participation costs.
The Company continues to expect 2011 attributable gold production at Yanacocha of approximately 675,000 to 725,000 ounces at CAS of between $500 and $550 per ounce.
Operating the largest gold mine in Latin America requires Newmont to ensure production and environmental standards abide by the laws regulating mining activities both at a domestic and international level. Newmont promotes the permanent growth of the region in compliance with responsible practices that value its workers and those engaged in forming a better society in which mining can coexist with the other productive activities of the region.
In September 2010, Peru's Ministry of the Environment honored Minera Yanacocha with the 2010 Business Eco-efficiency Award for developing responsible water management programs that have increased local farm productivity.
In partnership with rural neighbors and local authorities, Yanacocha incorporated into the construction of its site-wide water management system a series of community-focused water storage structures (such as the 6-million-cubic-meter San Jose Reservoir). These structures will serve as long-term, year-round water sources for many rural projects, including smaller, local reservoirs and irrigation canals. The water management programs have doubled dairy production in nearby communities since 2007.
In July 2011, Newmont announced that its Board of Directors approved full funding for the Conga project in Peru. Once commercial operations commence in late 2014 to early 2015, the project is expected to add annual attributable production for the first five years of 300,000 to 350,000 ounces of gold and 80 to 120 million pounds of copper.
"In addition to offering an operating cost profile of $400 to $450 per ounce, well below the industry average, Conga will provide a stable long term operating platform in Peru for several decades to come," commented Richard O'Brien, President and Chief Executive Officer.
The Conga project comprises two main copper and gold deposits called Perol and Chailhuag¥n 2. Congo has the potential to add as much as 50% of current gold and copper reserves over next 10 years. First production expected in late 2014 to early 2015, with approximately 6 months expected for ramp-up to commercial production.
Newmont Mining Corporation recently celebrated its 90th anniversary since its official incorporation on May 2, 1921. The Company is headquartered in Greenwood Village, Colorado and has approximately 34,000 employees and contractors working across the globe.
Founded by Colonel William Boyce Thompson, Newmont began managing private mining investments while over the decades adapting to meet growing global demand for a variety of natural resources. Newmont's portfolio, in years past, included companies such as Kennecott Copper, Standard Oil, Magma Copper, Peabody Coal, Atlantic Cement, and others.
Newmont is the world's second largest gold producer and is ranked 394 on Forbes' Global 2000 list and 295 on the Fortune 500. In 1940, when Newmont's shares began trading on the New York Stock Exchange, it was one of approximately 1,000 companies on that Exchange. Only 77 of those 1,000 companies continue to be traded on the NYSE.
Newmont was the first mining company to discover and produce submicroscopic, disseminated gold in 1965, which, along with Newmont's heap-leaching process, revolutionized the gold mining industry. "Our 90-year legacy of leadership and innovation provides a strong foundation to grow our business in a profitable and responsible manner," said O'Brien. "I have the privilege of traveling to Newmont's various locations around the globe, and I am always humbled by the quality, skill and commitment of our people. The company's address is 6363 South Fiddler's Green Circle, Greenwood Village, CO 80111, 303.837.5114, fax: 303.837.5085.