Peru's mega gold mines aren't so mega any longer

For years, Peru's gold production has been dominated by three mines, namely Yanacocha (NEM and BVN), Lagunas Norte (ABX) and Pierina (ABX). But that's changing fast, as these three charts show.

This shows output at Yanacocha:

This shows the combined outputs of the the two Barrick mines, Lagunas Norte (aka Alto Chicama) and Pierina:

And this one shows the percentage of the three mines' production to Peru's total monthly gold output.

The times they are a changin' and as we've recently seen, Peru is now far more dependent on the dirtiest and ugliest type of gold mining possible...and doesn't give a toss about it, either.

Mining Equipment Training: SENATI, Ferreyros CAT, and Yanacocha, Cajamarca

Video and News
Agreement between companies SENATI - Ferreyros - Caterpillar and Minera Yanacocha for training young people in operation and maintenance of heavy machinery in Cajamarca.

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Mining Equipment Training: SENATI, Ferreyros-CAT, and Yanacocha, Cajamarca

Gold Mining: Yanacocha - Index

Minera Yanacocha is the largest gold producer in Latin America.

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Yanacocha Mine Index

Yanacocha Mine: Hitachi EX5500 shovels loading CAT 793, 785 and 777

Minera Yanacocha is the largest gold producer in Latin America.

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Yanacocha Mine: Hitachi EX5500 shovels, CAT 793, 785 and 777

Yanacocha Mine: Caterpillar 793C re-assembly

Caterpillar 793C haul truck re-assembly in mine Yanacocha, Cajamarca, Peru, at 3:30 a.m.

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Yanacocha Mine: Caterpillar 793C re-assembly

Maps and News: Yanacocha Mine

Explore the geometry of Yanacocha, Cajamarca, Cuzco, Peru through detailed Google satellite imagery. To Pan: click and drag the map. Take advantage of the search and zoom bars.
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Yanacocha Gold Mine

Yanacocha: A nice catch by Reuters

Reuters is on the ball regarding Yanacocha and yesterday immediately noted a discrepancy between production estimates at South America's biggest gold mine for 2010. In the left corner we have Newmont (NEM) with upbeat estimates and in the right corner its JV partner at the mine, Buenaventura (BVN), with a negative outlook for production next year. Here's the excerpt from the note:

"This year, we're going to have something similar to 2008 production ... and for the next few years, we're going to maintain levels of around 1.8, 1.9 million ounces," Carlos Santa Cruz, Newmont's vice president of South American operations, told reporters.

His statement conflicts with one made last month by Roque Benavides, Buenaventura's chief executive, who said he expected to see production at Yanacocha falling roughly 25 percent to 1.5 million ounces in 2010, as lower ore grades are explored."

But hey...what's four hundred and forty two million dollars of gold between friends anyway, right?

Mercury is funny stuff

Here's a list of interesting facts about Mercury (Hg) and some of the things that happen to people who come into contact with it (and some of the things that don't happen, too).

Almost certainly know:
Mercury is a very dangerous substance, highly toxic and can be ingested through simple touch.

Probably know:

Eight years ago in Peru there was a spillage of 151kg of mercury. The truck was servicing the Yanacocha gold mine and splashed mercury at various points on its route, including the village of Choropampa. Other places affected were Chotén, San Juan, La Calera, El Tingo and Magdalena.

Choropampa in all its glory

Might know:
Of the 151kg of mercury spilled, 49.1kg was recovered, 17.4kg was absorbed into the earth, 21.2kg evaporated and 3.3kg is still unaccounted for (all official numbers).

Unlikely to know:
The mayor of Choropampa, Vicente Zárate Minchán, died early Monday morning, 10th November 2008. He was 34 years old and had been displaying symptoms typical to mercury poisoning.

Very unlikely to know
According to the local doctor (please note the singular), there are 80 other people displaying the same symptoms as showed Mr Zárate, a syndrome known as Guillain-Barré. The local doctor also says that 10 people have already died that were displaying the same symptoms. This is the point where lawyers for Yanacocha mine will tell the world that there is no proven connection between the death of Mr. Zárate, the other symptoms shown by locals and the mercury spillage. They will also show the world pieces of paper to prove their point. That's fine by me. This is also the point when Otto tells Yanacocha's lawyers to go **** themselves with a sharp stick.

I'd be extremely surprised if you knew:
In the eight years since the accident, the medical infrastructure in the village of Choropampa has not changed an iota. It is still reliant on a Medical Post that has one obstetrice, one doctor, one nurse and one technician. Yanacocha claims that all locals have access to private health coverage, but the villagers note that to claim on the insurance they have to travel to the city of Cajamarca, a mockery for those seriously ill.

Funny stuff, mercury. Hilarious, in fact.