* Miners pushing for bargains from contract, supply
companies
* Slumping commodity prices have hit miners globally
* Peru's Buenaventura cuts forecast 2015 silver output
(Recasts; adds comment, detail)
AREQUIPA, Peru, Sept 23 (Reuters) - Mining companies in Peru
are wringing bargains from contract and supply companies to
weather slumping mineral prices, the head of the country's main
mining association said Wednesday.
But competitive operating costs still put mines in Peru at a
safe distance from possible closures, said Carlos Galvez,
president of the National Society of Mining, Petroleum and
Energy.
The reliance of supply and service companies on miners gives
them little room to resist demands for slashed fees, Galvez
said.
"Do you want to earn very little or do you want to lose
everything?" Galvez said, summarizing the ultimatum more miners
are making as metal prices slide.
"Because if I fail you run out of work," Galvez said on the
sidelines of a mining conference.
Galvez, who is also vice president at Peruvian precious
metals miner Buenaventura BVN.N BUEv.N , said his company had
recently cut spending on outsourced services and supplies.
"You tighten or die," Galvez said, declining to specify how
much Buenaventura had lowered costs.
Peruvian silver and zinc miner Volcan VOL_pb.LM said
earlier on Wednesday that it had reduced its contract personnel
by 30 percent as part of "austere" measures needed to offset
price slumps. ID:nL1N11T2EU
Peru, the world's third-largest copper producer, is in a
much better position than top producer Chile to withstand the
price shock, Galvez said.
Lower energy costs, more water, cheaper labor and newer,
open-pit mines will all help keep Peruvian mines open, Galvez
said.
Galvez added that Buenaventura would likely produce 23
million ounces of silver this year, 500,000 ounces less than
previously expected due to a month-long strike at its
Uchucchacua mine in May.
The company's silver output is expected to rise to 24
million ounces in 2016, while a new mine, Tambomayo, will help
push production to 27 million ounces in 2017, Galvez said.
Last year Buenaventura produced 19.7 million ounces of
silver.
Galvez said the company still expected to produce around
800,000 ounces of gold this year.