Canada’s Kinross Gold Corporation, listed on the TSX and NYSE, has announced that it is proceeding with the Phase One expansion of its Tasiast mine in Mauritania.
The Tasiast open-pit gold mine of Kinross in Mauritania (photo: Kinross Corp).
Phase One is expected to increase mill throughput capacity from the current 8 000 tonnes per day (t/d) to 12 000 t/d, while significantly reducing Tasiast’s operating costs and increasing production. Preparations for Phase One construction to install incremental crushing and grinding capacity to the existing carbon-in-leach (CIL) circuit, which includes an oversized semi-autogenous grinding (SAG) mill and gyratory crusher, will begin immediately. Phase One is expected to reach full production by the end of Q1 2018 with estimated capital expenditures of approximately US$300 million.
Kinross has also released details of a prefeasibility study on a combined potential Phase One and Phase Two expansion based on installing additional mill throughput of 18 000 t/d for a total combined capacity of 30 000 t/d. This potential expansion contemplates replacing the two current ball mills with a new larger ball mill, adding incremental power generation to the existing 20 MW heavy fuel oil power plant and additional leaching and thickening capacity, upgrading the water supply infrastructure, and expanding the mine fleet.
“This phased approach allows Kinross to transform Tasiast into a lower cost, cash flow positive operation in the near term while preserving the operation’s significant growth potential,” comments J. Paul Rollinson, President and CEO of Kinross. “Phase One, which is expected to reach full production by the end of Q1 2018, will require an estimated initial capital investment of approximately US$300 million, to be self-financed by the company. The expansion is forecast to reduce Tasiast’s production cost of sales per ounce by an estimated 48 % while increasing annual production by an estimated 87 % compared with 2015. The Phase One expansion has robust standalone economics, including a positive 20 % expected internal rate of return.
“Phase Two, which anticipates increasing total throughput to 30 000 t/d, underscores Kinross’ focus on financial discipline. The forecast total capital expenditure for the combined Phase One and Two has been significantly lowered compared to previous expansion studies. With lower capital required, the expected benefits remain compelling, with a 30 000 t/d Tasiast expected to be the company’s largest and lowest cost operation with a long estimated mine life.
