Polymetallic producer Buenaventura, owner of the San Gabriel underground gold mine in Peru, said in its earnings report this week the mine will be a heavy focus for it in the coming year in terms of capital spending.
In the company’s third-quarter and nine-month 2023 report, Buenaventura said its 9M23 consolidated copper production increased 35% year-on-year; zinc production decreased by 65% during the same period, lead decreased by 61%, silver decreased by 19%, and gold decreased by 17%.
The company also spotlighted its planned investment of US$180 million to $200 million in the Moquegua region next year. Total capex is estimated at between $450 million and $470 million, with progress expected to be rapid as contractors are already working at the project site.
Executives said Buenaventura’s total capex in 2024 will be around $300 million.
As for the period just ended, the miner said that its capex at San Gabriel for 3Q23 and 9M23 totaled $22.4 million and $ 46.5 million, respectively, primarily tied to earthworks and construction-related water dam excavation.
It also invested an additional $40 million in the project as advance payment for equipment manufacturing, primarily related to the processing plant.
Buenaventura said the underground mining tender process for San Gabriel was completed during 3Q23. Personnel hiring and mobilization is in progress, and contractors will begin field works during 4Q23.