Kinross reaches terms with Government of Mauritania to enhance partnership

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.

For more information on the agreement, view the news release here or view our summary presentation here.

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