Peru Miner Buenaventura Gets Green Light For Tantahuatay -CFO

Precious metals miner Compania de Minas Buenaventura SAA (BVN) is moving forward with the Tantahuatay gold project in northern Peru, the company's chief financial officer said Friday.

Carlos Galvez told Dow Jones Newswires that the government has approved an environmental impact study for the project, and that construction is scheduled to begin early next year.

Buenaventura holds 40% in the project, Southern Copper Corp. (PCU) 44%, and 16% is held by Peruvian holding company Espro SAC.

The mine, which is expected to produce between 80,000 and 100,000 ounces of gold a year, is seen starting operations in the first quarter of 2011, Galvez said.

He said the final construction license should be granted within three months.

Galvez added that production at La Zanja gold mine, in which Buenaventura holds a 53% stake and Denver-based Newmont Mining Corp. (NEM) holds 47%, will start in July 2010.

Buenaventura produced 422,732 ounces of gold at its wholly-owned mines last year.

Buenaventura has a number of operating mines in Peru, as well as a 43.65% stake in Minera Yanacocha, South America's largest gold mine.

-By Leslie Josephs; Dow Jones Newswires; 511-98853-8610; [e-mail]