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Peru's mining stocks plunge

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Mining & Energy | June 6, 2011 [ 9:49 ]

Bloomberg

Buenaventura's stock is down today after Humala's victory.

Minas Buenaventura SA led a plunge in Peru’s mining stocks as former army rebel Ollanta Humala claimed victory in yesterday’s presidential election, reports Bloomberg.

American depositary receipts of Buenaventura, Peru’s largest precious-metals miner, tumbled 10.3 percent to $37.72 at 11 a.m. New York time on concern that Humala will raise mining royalties and impose more government control over natural resources. The decline was the biggest on an intraday basis since January 2009. Lima’s stock exchange halted all trading after the benchmark index sank 8.7 percent, the most since October 2008, at 9:31 a.m. New York time.

ADRs of Southern Copper Corp. (SCCO), Peru’s biggest copper producer, fell 9 percent to $31.58. Sociedad Minera Cerro Verde SA, a unit of Freeport-McMoRan Copper & Gold Inc., declined 13 percent to $33.90 in Lima before trading was halted. Volcan Cia. Minera SAA, Peru’s largest zinc producer, plunged 15 percent to 2.65 soles before the trading suspension.

Humala, 48, leader of the Nationalist Party and a one-time ally of Venezuelan President Hugo Chavez, had 51.3 percent of votes compared to 48.7 percent for Congresswoman Keiko Fujimori with 88 percent of ballots counted.