Peru Ministry of Energy and Mines approves permit, suspends three

Peru's Ministry of Energy and Mines (MINEM) approved Compañía de Minas Buenaventura's Yumpag silver project in the Pasco region.

The Peruvian precious metals miner is investing US$141 million in the project, of which at least $30 million will be spent in the short term, according to the ministry. 

Yumpag was approved to extract 1000t a day, reaching a production of 6.5-7.2Moz of silver in 2024. The project has inferred resources of 1.12Mt at 23.8ozpt silver.

"Receipt of this final permit for our flagship Yumpag mine represents a significant milestone for Buenaventura and also reflects our proficiency in handling mining projects as well as regulatory processes efficiently and effectively," Buenaventura's chief executive Leandro Garcia said.

At the end of last year, Buenaventura suspended activities at its Tajo Norte mine for up to three years due to permitting delays. The miner said it would "maintain its focus on improving operating efficiency to remain competitive while mining activities at Tajo Norte are suspended".

Buenaventura's share price is at US$17.32; it has a market cap of $4.44 billion.

Three permits suspended

Elsewhere, in a filing to the Peru stock exchange on Tuesday, silver miner Volcan said its Mineras San Cristobal, Carahuacra and Ticlio would be suspended for around 30 days "while adapting the operating permits of the Rumichaca tailings dam".

"During the suspension period, all necessary care and maintenance work will be carried out to restart operations as soon as possible," the company said.

It added that its Animon, Alpamarca, and Andaychagua Cerro de Pasco projects would continue to operate as normal.