On June 15th, Kinross announced an agreement in principle had been reached between the Company and the Government of Mauritania to enhance their partnership while better aligning long-term interests for both parties, underpinning the continued success of the Tasiast operation for years to come.
“We are pleased to see further development of a positive foreign investment climate in Mauritania with this successful outcome of our discussions with the Government, along with the IFC-led Tasiast project financing signed in December 2019,” said J. Paul Rollinson, President & CEO. “This balanced agreement will deliver increased stability, position Tasiast for long-term success, and provide enhanced benefits to Mauritania and its people.”
“Tasiast is an important contributor to Mauritania and we believe our new agreement will be a positive model for other foreign mining investors,” said Mohamed Abdel Vetah, Mauritanian Minister of Petroleum, Mines and Energy.
Key terms to be included in the definitive agreement include:
- 30-year exploitation license for the prospective Tasiast Sud area, with expedited permitting
- Reinstatement of tax exemption on fuel duties
- Government to repay outstanding VAT refunds through 2025
- Kinross to pay updated, escalating royalty that aligns with current mining convention and tied to gold price
- Payments by Kinross to the Government to resolve disputed matters
- Government will have the right to nominate two observers to Tasiast’s Board and one presentative and one observer to Tasiast Sud’s Board