Peru Gold Production Rises in February

Peru‘s Ministry of Mines and Energy reported that gold and zinc production rose in the country in February.

Gold production increased 5% to 522,373 ounces compared to February 2009, driven mainly by a jump of 69% at Barrick Gold’s (NYSE: ABX) Minera Barrick Misquichilca, which represents 26% of national production, the ministry said.

Zinc output also rose 5% to 119,076 metric tons last month. Sharp increases in zinc production were reported at Compania Minera Antamina — up 45% — and Compania Minera Atacocha SA, up 25%.

On the downside, silver production in Peru — the world’s largest producer — fell by 11% to 9,596,228 ounces of silver last month; an 11% decrease compared to February 2009 when 10, 819,793 ounces of silver were produced. The ministry said the drop was mainly due to a 44% lower output at Compania de Minas Buenaventura (NSYE: BVN), which was hit by strikes in February, and a 41% drop at Compania Minera Ares.

Copper production in Peru, the world’s second largest producer, also fell 4% to 93,993 tons in February from the same month a year ago. Production was hit by lower output at Doe Run Peru, down 18% following strike action at its Cobriza mine, as well as 17% reductions at both Southern Copper Corp.(NYSE: SCCO) and Minera Condestable.

Molybdenum production rose 13% to 956 tons in February, according to the government. Iron production also rose by 37% to 445,155 tons.

As the Peruvian mining industry continues to expand, there will be a growing need for more energy. My colleague, Sam Hopkins, recently returned from the country where he got a first hand look at Peru’s growing wind energy projects. To learn about Sam’s Peruvian adventure — and two wind energy companies he believes will return expect upwards of 60% in short order — check out his latest report.