Kinross investing in growth

Toronto-based Kinross Gold has earmarked more than US$1 billion to increase production and lower costs as part of the expansion of two of its gold mines in the US and Africa
Kinross investing in growth Kinross investing in growth Kinross investing in growth Kinross investing in growth Kinross investing in growth

Staff reporter

The miner confirmed this week that the second phase of expansion at its Tasiast mine in Mauritania, western Africa, which involves boosting the complex’s mill capacity from 12,000t/d to 30,000t/d, will carry an initial cost of US$590 million.

Post-expansion, annual gold production at Tasiast will rise to 812,000oz.

At its Round Mountain mine in Nevada, it will invest another US$445 million to add a half decade to the operation’s lifespan that had been slated for 2022. That project will add about 1.5Moz of reserves.

Round Mountain’s Phase W feasibility study is examining a layback of the mine’s current pit as well as new plant construction and the placement of a heap leach pad. It also includes mining fleet and equipment additions and some infrastructure relocation.

Kinross said both projects will be financed with existing liquidity and operating cash flows; as of June 30, its total liquidity was approximately US$2.5 billion.

In a commentary regarding the announcements, CEO and president J Paul Rollinson said Kinross is delivering on its strategy while opening a new chapter as its invests in long-term future growth.

“Our decision to proceed with the Tasiast Phase Two expansion underscores our determination to realise the potential of this world-class asset and generate significant value for our shareholders. [The] strong improvement in Tasiast's performance is expected to positively impact overall company performance metrics, strengthening our production profile and increasing cash flow.

“We have applied the same financial and technical rigour to the Phase W expansion at Round Mountain. Lower operating costs, combined with an optimised mine plan, have contributed to a further de-risking of the project and improved returns.”