Peru Buenaventura Moving Forward With La Zanja Gold Mine -CFO

Peruvian precious metals mining company Compania de Minas Buenaventura SAA (BVN) will begin construction on gold mine La Zanja as early as the first quarter of this year, despite global economic turmoil, chief financial officer Carlos Galvez said Tuesday.

Galvez told Dow Jones Newswires that the company is awaiting final permits from the Peruvian government to start construction on the gold mine in the northern Cajamarca department and that global financial turmoil won't deter the project.

"We're hoping for the first quarter," Galvez said. "The problem is getting the permits."

He added that production is scheduled to begin in 2010 at La Zanja, in which Buenaventura holds a 53% stake and Denver-based Newmont Mining Corp. (NEM) holds 47%.

The mine is expected produce 100,000 ounces of gold each year.

Galvez said global financial turmoil won't delay La Zanja or other smaller projects, such as Tantahuatay.

"We've prepared," Galvez said. "There will be no problem to manage these projects."

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; 511-211-2689; [e-mail] -

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