Gold Mining and Exploration in South America -- An Overview

Gold mine production in South America was 247.3 tonnes in 1995 up from 156.4 tonnes ten years earlier in 1986. This represents a 58 per cent increase and amounted to 11 per cent of total world gold mine production. The major countries involved in order of production, were: Brazil (67.4 tonnes), Peru (51.5 tonnes),. Chile (48.5 tonnes), Colombia (24.1 tonnes), Venezuela (17.1 tonnes), Bolivia (16.0 tonnes), Ecuador (9.6 tonnes), Guyana (8.8 tonnes), French Guiana (3.3 tonnes) and Argentina (one tonne). The most dramatic increase was reported in Peru where production increased from 10.9 tonnes in 1986 to 51.5 tonnes in 1995, heavily influenced by the production from Minera Yanacocha which began operations in 1993 and produced 17.2 tonnes in 1995.With the reformation of the mining laws and the introduction of investment incentives in all the South American countries in recent years, dozens of major and junior mining companies began flocking into the area in the early-1990s to conduct exploration. A recent study undertaken in Brazil shows that an average of $240 million per year will be expended in this country during the period 1993 - 2010. Twenty-five per cent of this expenditure is expected to be made on gold exploration. Similar figures for Peru are $220 million total per year with 50 per cent for gold; $170 million per year in Argentina with 25 per cent for gold and $120 million ner year in Chile also with 25 Der cent for gold.