Mining News

Kinross signs definitive agreement with Mauritania

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Kinross Gold (TSX: K; NYSE: KGC) and the government of Mauritania have signed a definitive agreement that provides more economic certainty on operation of the Tasiast gold mine.

This agreement confirms the key terms of the agreement in principle signed a year ago: fuel remains duty-free; $40 million to the company in outstanding VAT refunds; $10 million to the government to resolve disputed matters; an updated escalating royalty structure tied to the gold price; and two government observers on the Kinross board of directors.

Tasiast open pit mine and heap leach is in the midst of the 24k continuous improvement project. Throughput capacity is to reach 21,000 t/d in the first quarter of 2022 and then 24,000 t/d by mid-2023. The feasibility study projects increased production, reduced costs, and an extended mine life to 2033. In 2020, Tasiast produced 406,509 oz. of gold equivalent.

(This article first appeared in the Canadian Mining Journal)

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