Peruvian gold miner reports 39% output drop

The company in charge of the biggest gold mine in Peru has reported a 39 per cent fall in output between 2006 and 2007.

Minera Yanacocha, which is majority-owned by Newmont Mining, produced some 1.56 million ounces of gold bullion last year - down from the 2.57 million ounces recorded in 2006, Dow Jones reports.

The news follows recent indications of an overall drop in gold mining output in Peru. GFMS released a report last month that cited provisional statistics showing a 17 per cent fall in Peruvian gold production in 2007 - the lowest level for five years.

Meanwhile, the Expreso daily newspaper carried comments from the president of the National Mining, Petroleum and Energy Association in Peru suggesting that gold production in the country has fallen by 50 per cent since 2004, Living in Peru reported.

It is getting harder for mining firms around the world to find significant gold deposits, a trend that may have an upward effect on gold prices and bode well for those holding gold investments.

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