PERU TO MAINTAIN SILVER SALES FREEZE
Energy and mines minister, Wilfredo
Huayta, said Peru would maintain its freeze on new sales of
silver until the price of the precious metal reaches "the true
value this raw material should have."
    He spoke to reporters at the presidential palace after
meeting president Alan Garcia, whom he said recently spoke by
telephone with Mexican president Miguel de la Madrid. Mexico
and Peru are the world's two largest silver producers.
    Huayta, asked what the true price level of silver should
be, repled: "well, this cannot be predicted."
    He said Minero Peru Comercial (Minpeco), the government's
minerals marketing arm, would closely study the price of silver
in the world market.
    Last Tuesday, the government instructed Minpeco, which
handles all Peru's exports of refined silver and state-
produced ore, to immediately freeze all new silver sales until
the metal's price reached equilibrium in the world market.
   Peru plans to produce 63 mln ounces of silver this year, and
is the largest producer of the precious metal after Mexico.
   Huayta said both nations' central banks would coordinate
their work, but did not elaborate how they would do this.
   Peruvian central bank president Leonel Figueroa and the head
of Bank of Mexico, Miguel Mancera Aguayo, met in Mexico City
yesterday to coordinate actions aimed at consolidating the
upward trend in the price of silver, the official newspaper El
Peruano said today.
    Huayta said his Mexican counterpart, minister of oil, mines
and parastatal industry, Alfredo del Mazo, should be in Lima on
a visit at a nearby date.
   Huayta added Peru did not want to see great fluctuations in
the price of silver, but declined to comment on what Peru would
like to see as a ceiling for the precious metal's price.
   Silver bullion climbed to nearly 10.00 dlrs an ounce today
from about 5.70 dlrs an ounce a month ago.
 Reuter
