Gold production plunges in Peru

Production of gold in Peru has fallen by 50 per cent in the last three years, it has been claimed.

Citing an Expreso report, Living in Peru says that Ysaac Cruz, president of the National Mining, Petroleum and Energy Association, has expressed concern over whether the country can continue to compete in the global gold mining market.

According to a report from the Peruvian mining and energy ministry, gold production experienced a drop of 19 per cent last year, compared with 2006 levels - a statistic that could have a positive bearing on gold prices.

The figures appear to back up findings from GFMS that suggest Peru's gold bullion production fell by 17 per cent last year, making it one of the worst hit countries in the world.

"This puts the country's position as the world's fifth largest gold producer at risk, because it can easily be replaced by countries that are producing more," Mr Cruz said, commenting on the official gold production figures.

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