On September 15th, Kinross was excited to announce that it will be proceeding with the Tasiast 24k project.
The project takes a continuous improvement approach to incrementally increase throughput capacity to 24,000 tonnes per day (t/d) by mid-2023 and increase average annual production to about 563,000 Au oz. at a low production cost of sales of $485 per Au oz. from 2022 – 2028, with mine life going until 2033.
The initial capital cost estimate of $150 million is significantly less than the capital estimate for the original 30,000 t/d Phase Two expansion plan, largely a result of less additional infrastructure and greater utilization of the existing facilities. For example, the project leverages the upside flexibility of the SAG mill, instead of requiring the addition of a new ball mill, resulting in substantial capital savings. As well, the design and engineering of the project benefitted significantly from the knowledge acquired operating the Phase One expansion.
The 24k project also incorporates operational efficiencies in maintenance, mining, supply chain and processing stemming from the “Our Tasiast 2020” initiative at site.
“We are excited to be moving ahead with the value-enhancing Tasiast 24k project,” said J. Paul Rollinson, President & CEO. “The project allows us to further unlock Tasiast’s substantial value through a capital efficient, low-risk investment that maximizes 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.”
This project builds on the strong momentum at our Company and further strengthens our development pipeline, adding to our high-quality projects in the U.S., Chile and Russia. The 24k also expects to continue and expand the benefits Tasiast brings to Mauritania and local communities around the mine.
We are well-positioned to execute on the project and are excited about this next step in Tasiast’s future.