Kinross will be proceeding with Phase One of the two-phased Tasiast expansion plan, which will increase throughput capacity from the current 8,000 tonnes per day (t/d) to 12,000 t/d.
“This is very exciting news, and the product of a lot of hard work and determination by many people working together across the Company,” said J. Paul Rollinson, President & CEO. “This two-phased approach is expected to transform Tasiast into a lower cost, cash flow positive operation in the near term while preserving the operation’s significant growth potential.”
Phase One is expected to turn Tasiast into a cash flow generating operation by significantly increasing annual production and reducing the forecast production cost of sales.
“Phase One, which is forecast to reach full production by the end of Q1 2018 and require an estimated initial capital investment of approximately $300 million, will be self-financed by the Company,” said Paul Rollinson.
Prefeasibility study results for a combined Phase One and Phase Two expansion were also released and is expected to add an incremental 18,000 t/d in throughput capacity for a total combined capacity of 30,000 t/d. The expansion is expected to transform Tasiast into Kinross’ largest and lowest cost operation.
The combined capital expenditure for Phase One and Phase Two is forecast to be $920 million, which is a significant reduction compared to the estimated $1.6 billion for the previously proposed 38,000 t/d expansion.
Phase Two’s feasibility study is expected to begin in the second half of 2016, with the goal of making a go-forward decision by the end of 2017.
Preparations for Phase One construction will begin immediately, with full production expected by the end of Q1 2018.
Click here to read the news release.