Minera Yanacocha, Three Years Later

The Yanacocha Project is the first foreign investment in Peruvian mining since Cuajone (1976). Three years after the project began, it has become the largest producer of gold from heap leach operations in the world and the top producer in Latin America. The success of Minera Yanacocha (MYSA) opens a new chapter in Peruvian mining with the exploitation of its widely spread gold deposits and has attracted the interest of foreign investors in Peru's ample mineral resources. Construction began on August 1, 1992 and after twelve months of arduous work, the first gold bar was poured on August 7, 1993 from ore from the Carachugo mine. In 1993, Minera Yanacocha produced 81,000 ounces of gold and 304,000 ounces in 1994 (40% above budget). Production is expected to exceed 500,000 ounces in 1995 with the start-up of operations in the Maqui Maqui mine. This paper presents a summary of MYSA's experiences during its first two years of operations in the areas of mining, ore processing, environmental protection, loss control and community assistance. The paper also shows that MYSA's successes are not only due to the richness of the deposit, but also to the combination of a number of factors basic to the project's success, such as: an economic policy favoring investment in Peru, the availability of highly qualified local personnel to facilitate the transfer of technology from the United States and the desire and determination of the partners to carry the project forward in an initial atmosphere of uncertainty and terrorism.