Gold Fields to Boost Output at Peru, Africa Mines

Gold Fields Ltd. (GFI), Africa’s second-biggest gold producer, plans to almost triple annual gold output from its Peruvian and South African mines as prices rise, Chief Executive Officer Nick Holland said.

Gold Fields aims to produce 1 million ounces annually from its Cerro Corona and Chucapaca deposits in Peru and 800,000 ounces at the South Deep mine in South Africa within four years, Holland said today in an interview in Lima. Cerro Corona and South Deep produce a combined 625,000 ounces a year now, while the Chucapaca project is still being explored.

“South America will be an important part of the world for Gold Fields to be in,” Holland said. “We’d be happy to invest another $750 million in Peru.”

Gold prices will probably rise as global output falls and investor demand climbs on concern that monetary expansion in Europe and the United States may fuel inflation, Holland said. Demand from exchange traded funds may rise to 3,000 metric tons from 1,800 tons now, he said.

Gold Fields fell 23.1 cents, or 2.2 percent, to 101.19 rand in Johannesburg trading today. AngloGold Ashanti Ltd. is Africa’s biggest producer.

Gold futures for June delivery fell $13.50, or 1.1 percent, to $1,214.60 an ounce on the Comex division of the New York Mercantile Exchange. Prices have risen 31 percent over the past 12 months

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net.

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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