Newmont boosts output

Newmont Mining (NEM-N) has upped its production forecast at South America’s largest gold mine.

The Denver-based company now estimates that the Yanacocha mine in northern Peru will produce 1.6 million oz. in 1999. Originally, Newmont, which controls a 51% interest in the open-pit operation, expected to produce

1.4 million oz. for the year.

At the same time, the estimated cash operating cost for 1999 has fallen to US$100 from US$110 per oz. and Newmont anticipates a 15% increase in reserves. Total reserves at the end of 1998 were 702 million tons averaging

0.029 oz. per ton, equivalent to 20.6 million oz.

The company plans to step up development of the latest discovery at Yanacocha — the Quinua deposit, where production is scheduled to to begin in the third quarter of 2000. In 1998, Yanacocha produced 1.3 million oz. at a total cash cost of US$104 per oz. Newmont’s cash cost, after the deduction of “intercompany charges,” was US$95 per oz. In July, after about

after six years of operation, the mine will produce its five-millionth ounce of gold

Minas Buenaventura (BVN-N), Peru’s largest mining company, owns a 44% stake in Yanacocha, with the remaining 5% held by International Finance Corp.