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Gold/Mining/Energy : Manhattan Minerals (MAN.T) -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (4356)	5/15/2002 10:59:25 AM
From: russwinter	Read Replies (1) \| Respond to of 4504

Peru Pushes Gold Mining As Conference Kicks Off By: Robert Kozak, Of DOW JONES NEWSWIRES LIMA -(Dow Jones)- As a four-day gold conference opened late Tuesday, Peruvian government officials worked to ensure miners that projects in the Andean nation would benefit from a clear judicial framework. Outside the downtown hotel where the miners were meeting, protesters marched against the government's economic policies while legislators in Congress considered constitutional changes that would toughen labor laws. But inside, President Alejandro Toledo noted that Peru has become one of world's top ten gold producers. "Investors will find in this government clear rules, and a transparent and stable judicial system," he said in a speech. As base metal prices have dropped, gold has become a much more important mineral for the Peruvian economy. From production of about 10 metric tons in 1990, Peru produced 138 tons of gold last year. The opening of mines such as Yanacocha, the biggest in Latin America, and Barrick Gold (NYSE: ABX - News) 's (ABX) Pierina in the central Andes, sharply boosted output. Minera Yanacocha SRL, owned 51.35% by Newmont Mining Corp (NEM), 43.65% by Buenaventura SAA (BVN) and 5.0% by the World Bank's IFC, expects to produce between 2.1 and 2.2 million ounces this year. Pierina sees output of about 820,000 ounces this year. More deposits are still being found. Barrick Gold recently announced that it had found a deposit with reserves of about 3.5 million ounces of gold at Alto Chicama in northern Peru . "The recent discovery by Barrick is a sign that Peru is a good place to invest," Mines and Energy Minister Jaime Quijandria said in a speech. Nagging Problems Remain But there are some nagging problems, officials from the local mining sector said. The government faces a strong backlash against its privatization process, which has in the past included mining concessions. Various scheduled auctions of government properties have been delayed, with the most recent being the delay of the sale of two energy companies that was originally set for today but which has been put off for one month. Protesters have demanded the government stop the privatizations, which they blame for higher utility rates and job losses. Mining companies have also regularly been pressured by regional governments and local citizen groups who want a larger share of the returns from the projects. During a speech, the President of the National Mining, Petroleum and Energy Society, Ricardo Briceno, said the government should refrain from taking any hurried measures and to preserve the conditions for judicial security. "A climate of judicial security isn't obtained only with a signature and judicial or tax stability contracts that companies sign after investing hundreds of millions or billions of dollars," he said. "Judicial security implies that the rules of the game aren't changed, that basic norms and principles of the state are outlined as a part of a program of development," he added. The former government of now-exiled President Alberto Fujimori infuriated the mining sector in his last months in office in 2000 by stripping away tax stability agreements for new projects. Briceno also warned that work going on in Peru 's Congress to overhaul the 1993 Constitution and to bring in new legislation to toughen labor laws could affect investments. "We should avoid making any hasty changes to a document of such importance," he said in reference to the Constitution. "We are sure the government won't give in to populist measures," he added. The gold conference, organized by the National Mining, Petroleum and Energy Society, will also examine projects being developed around the world, the outlook for the gold market and other issues.