INTERVIEW: Buenaventura Considering Latin America Acquisitions
04 März 2011 - 11:08PM
Dow Jones News
Peruvian metals miner Compania de Minas Buenaventura SAA (BVN,
BUENAVC1.VL) is considering the purchase of other precious metals
assets in Latin America as it also plans to expand its own
projects.
"We are looking for opportunities," Chief Executive Roque
Benavides told Dow Jones Newswires Friday. "There are a few."
He would not specify which companies Buenaventura is considering
but said it would consider precious metals deposits in other Latin
American countries. Any copper deposit purchases would have to be
inside Peru. Buenaventura is not looking for acquisitions outside
Latin America.
"When we go abroad we are specifically looking for precious
metals," Benavides said.
At least 60% of the company's revenue should come from gold and
silver, he said.
While Buenaventura is looking to buy assets currently owned by
other companies, the Peruvian miner is also focused on growing the
reserves from projects it already owns.
It is in the process of determining whether it will double or
triple production from its 19.26% ownership in the Sociedad Minera
Cerro Verde SA (CVERDEC1.Vl) mine, which is majority controlled by
Freeport-McMoRan Copper & Gold Inc. (FCX).
Such a move would take Buenaventura's copper production to
between 500,000 and 700,000 metric tons, Benavides said. Production
at the mine in 2010 was 302,711 metric tons, virtually flat
compared to 2009.
An announcement about the expansion decision will be made "in
the next couple of months," Benavides said.
The expansion plans come as copper and gold are at record highs
and silver is nearing its strongest price in 31 years.
On Friday, the most actively traded gold futures contract, for
April delivery, rose $12.20, or 0.9%, to settle at $1,428.60 a troy
ounce on the Comex division of the New York Mercantile Exchange.
Silver for May delivery settled up $1, or 2.9%, at $35.327 an
ounce. Copper for May delivery settled 0.1%, or 0.45 cent, lower at
$4.4855 a pound.
"The base for the future of metals prices has gone up,"
Benavides said. "The world in general is looking for more tangible
assets instead of fancy financial instruments."
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139;
matt.whittaker@dowjones.com
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