New Mines Will Make Chile One Of World’s Leading Producers
A study conducted by Chile's National Copper Commission (COCHILCO) reports that the country will most likely triple its gold production within the next five years.
Gold is set a record high value of US$1,103 on monday's Hong Kong Stock market.
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The opening of new mines in Chile's north will take production from an annual level of 39 tons to nearly 110 tons, said the report. This would make Chile one of the world’s 10 largest producers.
“These new mines would give Chile one of the biggest gold industries in the world”, said mining minister Santiago Gonzalez, reflecting on the study.
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The increased production will come from extending existing mines and the opening of two new mines in the Atacama area (Region III) of Chile.
The construction of the Pascua Lama mine was recently authorized by the Chilean government (ST, Sept 23). The world’s biggest gold mining company, Barrick Gold, will invest US$3 billion in the project and hopes to begin production by 2012.
Canadian firm Kinross will also open its Lobo Marte gold mine in 2012. Nearly US$1 billion will be invested in a site believed to hold reserves in excess of 185 tons (ST Sept 28).
Barrik and Kinross plan to jointly invest a US$3 billion establishing further projects along Chile's border with Argentina.
Chile currently ranks sixteenth in the world for gold production. Gold prices reached a record high of US$1,103 per ounce on Monday's Hong Kong stock exchange.
SOURCE: EL MERCURIO
By James Fowler (firstname.lastname@example.org)