The deputy minister of the Peruvian copper ministry says that this year's production is expected to be below expectations.

The world's third largest copper producer, Peru is expected to fall short of its government goal this year. A top mining official told reporters on Wednesday that the government's goal of 3,000,000 metric tons of the metal will probably not be met this year.

The output is on track to be around 2.8 million tonnes this year, according to Henry Luna, deputy mining minister.

He did note that certain miners could increase their estimates of production under a new standard by the government allowing copper-processing plants to increase capacity by 10%.

Luna, speaking to reporters at an industry conference for the mining sector, said: "At year's end (production) increases but the projected amount is 2.8 millions tons in Peru."

Official data shows that copper production in this year's first half through July was down 2.3% from the same period last year.

A government report states that the production in this period was 1.51 million metric tonnes, due to decreases of 5.7% Cerro Verde and 11.3% Las Bambas, as well as 17.1% Toromocho.

Peru produced 222 389 tons of copper in July, a drop of 3.2% from the previous year. Quellaveco owned by Anglo American saw its production drop nearly 25% during the month.

Peru, which had been the second largest copper producer in the world after Chile for many years, lost that position last year to the Democratic Republic of the Congo.

The initial production target for this year, set by the government at 3 million tons (a 9% rise over last year), was a modest one. Last month, the SNMPE mining oil and energy association said that it expected copper miner's to miss this target.

(source: Reuters)