Upsurge in gold production expected in Chile

With nearly 6 million tonnes mined every year, Chile would be the world’s chief copper producer. Now, it turns out the country could someday develop into a leader in gold production too, giving its neighbour, Peru, a run for its dollars.

In accordance with recent Usa Geological Survey statistics, Chile is now fourth in the world with regards to untapped gold reserves, following Russia and ahead of the United states. In 2011, Chile mined 50 tonnes of gold, but its possible may very well be as high as three,750 tonnes. Exactly the same statistics project that Peru, which in 2011 mined 165 tonnes and is South America’s largest gold producer, has only two,000 tonnes of gold remaining to be extracted.Stone Crusher

At the moment, Chile ranks 17th inside the international ranking of gold production, according to IndexMundi.com, but now Chilean officials are saying the country is working difficult to be among the leading 10.

“By 2016, total gold production in Chile has the potential to triple today’s production, reaching greater than 140 tonnes, which could put us eighth worldwide,” Vicente Perez, an analyst who works for the Chilean Copper Commission (Cochilco), told Infosurhoy.com final year.

Regardless of its low production to date, gold mining in Chile is absolutely not new. Actually, it dates back to the finish from the 16th Century when Spain turned its eye to Chile, just after obtaining gold in Peru. The Spaniards managed to extract about two tonnes a year from gold mines in southern Chile, ahead of copper became the country’s major mineral export in the 19th Century.Stone Crusher Plant

Gold is frequently found with other ores like copper and silver but within the 1970s, a series of gold deposits were found inside the Andean Cordillera. An write-up published in Company Chile Magazine states that Chile’s initially significant gold mine was “El Indio,” inside the country’s north east. It began operating in 1982, reaching peak production of 16 tonnes a year. Canada’s Barrick Gold Corporation (TSX: ABX, NYSE: ABX), the world’s largest gold producer, purchased the mine in 1994 but closed it in 2002 following its reserves had been depleted.

Nowadays, Barrick continues to play a considerable role in Chile’s gold production. The company has two projects in the country: Cerro Casale and Pascua-Lama, which are expected to become operational within the subsequent couple of years.

Cerro Casale, also in northern Chile and owned by each Barrick and Kinross Gold Corporation, is believed to include a single from the largest undeveloped gold/copper deposits on the planet. Its deposits consist of substantial gold and copper orebody with reserves (100%) of around 720 tonnes of gold (or 23 million ounces) and 2,900 tonnes of copper (or five.eight billion pounds).

When it opens, Pascua-Lama will probably be the biggest gold mine in Chile. Building is underway and also the project, which straddles the border with Argentina, is expected to make nearly 39 tonnes of gold a year by 2015, about 75% of which corresponds to Chile and the rest to Argentina.

Till then, Kinross remains Chile’s top gold producer. Its two mines within the Atacama Region - Maricunga and La Coipa - account for about 25% of total gold production. Kinross has invested heavily in exploration, primarily in La Coipa and at its new mine, Lobo-Marte.

Other gold-mining providers in the region involve GoldCorp, Yamana Gold, Orosur Mining, as well as the Chilean state-owned Codelco.