LIMA(BullionStreet): Silver production in Peru, world's second largest producer, continued to recover from last year's slump as output in the first nine months of this year hit 2,588,775 kg.

According to Ministry of Energy and Mines, this was an increase of 2.55 percent from last year's figure of 2,524,488 kg. In September alone production rose by 3.65 percent to 292,677 kg.

The ministry attributed the increase in production of the white metal to improvement at Minera Argentum, Cerro Manager and Compania Antamina.

Peru's silver production fell 6.22% in 2011,from 3,640,465 kilograms (117,043,667 troy ounces) in 2010 to 3,414,010 kilograms (109,762,970 ounces) in 2011.

Peru's gold production in the first nine months this year marginally rose by 0.17 percent to 124,273,608 grams from last year's 124,068,705 grams.

Gold production for September 2012 was reported at 12,822,724 grams (412,260 troy ounces), down 9.12% from the 14,108,776 grams (453,607 ounces) reported in September 2011.

Gold production for September of this year declined at Minera Laytaruma and Minera La Zanja.