Kinross to go ahead with revised Tasiast expansion

Kinross Gold is to proceed with its Tasiast 24k expansion project in Mauritania, which aims to increase throughput by more than 50% for an initial capital cost of US$150 million

Staff reporter
Tasiast in Mauritania

Tasiast in Mauritania

The Tasiast 24k project feasibility study is based on a $1,200 per ounce gold price and will have average annual production of 563,000oz from 2022 to 2028 at an all-in sustaining cost of $560/oz, yielding a net present value of $1.7 billion and internal rate of return of 60%.

The expansion plan represents a significantly lower capital cost compared with the former $600 million plan for a 30,000tpd operation with the revision based on its operating experience from the phase one mine operating at more than the planned 14,000 tonnes per day due to the performance of the SAG mill.

The SAG mill performance means the company does not need to add a ball mill. The expansion will ramp up to 21,000tpd by the end of 2021 and onto 24,000tpd by mid-2023. It is also expected to extend the mine life by four years to 2033.

Throughput increases are expected to be achieved through minor upgrades and de-bottlenecking in the plant including modifications to the grinding circuit, adding new leaching and thickening capacity, as well as incremental additions to onsite power generation and water supply.

"The project allows us to further unlock Tasiast's substantial value through a capital efficient, low-risk investment which maximises the mine's potential through continuous improvement and leverages the knowledge we have gained from running the successful Tasiast Phase One expansion. The 24k project is expected to increase production and lower costs while generating attractive returns and significant free cash flow," said president and CEO Paul Rollinson.

Kinross is advancing on a $300 million project financing from the International Finance Corporation, Export Development Canada and two commercial banks.

The company has also engaged with the new government of Mauritania following the presidential inauguration in August with Rollinson recently meeting with newly elected president Mohamed Ould Cheikh El Ghazouani and other key members of government. It has also signed an agreement in principle on the main terms and conditions of a new three-year collective labour agreement with unionised employees at Tasiast, which is expected to be finalised in the coming weeks and replace the current labour agreement which set to expire in November.

The December 2018 estimated proven and probable mineral reserves at Tasiast are about 7.2 million ounces grading 1.9 grams per tonne. Estimated measured and indicated mineral resources are 2.7Moz.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.


Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.


Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets


Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production


Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions