Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Operations at Buenaventura’s (NYSE:BVN) Uchucchacua silver-zinc-lead underground mine in Peru have resumed, the company said, after community protests forced the firm to halt output last week.
The Lima-based miner noted the community of Oyon ended its blockade after the government agreed to discuss demands for compensation for land use.
Community protests had forced the precious metals miner to halt output at Uchucchacua last week.
As a result, the company — Peru’s largest publicly traded precious metals miner — was able to restart operations at Uchucchacua on Friday, Nov. 4.
The incident is the last of a string of community-led protests in Peru, demanding for a greater share of the country’s mineral wealth.
Locals have also protested this year for greater social spending at the company’s $362 million Tambomayo gold-silver mine, one of several smaller operations the company has been opening to keep production up as other assets’ reserves go dwindle.
Buenaventura, the first Latin American mining company to list on the New York Stock Exchange back in 1996, didn’t provide details on how production had been disrupted.
According to the company’s website, Uchucchacua is expected to produce between at 17 and 18 million ounces of silver by year-end, compared with 2016 output of 16.2 million ounces. The mine also yielded 7,227 tonnes of zinc and 10,724 tonnes lead in 2016.
To date, Uchucchacua has produced over 259 million ounces of silver.
