tasiast

Kinross Gold has dropped its $1.6bn expansion plan at its Tasiast mine in north-western Mauritania, citing weak gold prices.

Kinross Gold CEO Paul Rollinson said: "2014 marked another excellent year for Kinross operationally with record production of 2.71 million ounces (Moz), declining costs and strong cashflow generation, despite lower gold prices.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

"With ten consecutive quarters of having met or exceeded expectations, the company continues to deliver on its commitment to operational excellence, financial discipline and balance sheet strength."

The company believed that the mill expansion had the potential to offer a rare combination of large and low-cost production.

"Kinross Gold’s decision to forgo the expansion will preserve its cash position, which is said to be around $1bn at year-end."

Kinross Gold’s decision to forgo the expansion will preserve its cash position, which is said to be around $1bn at year-end.

Tasiast was acquired by Kinross Gold as part of the company’s $7.1bn acquisition of Australia-based Red Back Mining in 2010, Reuters reported.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company, which anticipates total capital expenditures of around $725m this year, hopes to produce about 2.4Moz to 2.6Moz of gold-equivalent at a production cost of sales per gold-equivalent ounce of $720 to $780.

Claimed to be the world’s fifth biggest gold producer based on output, Kinross has operations in North and South America, Africa and Russia.

Image: Kinross Gold acquired Tasiast as part of its $7.1bn acquisition of Red Back Mining. Photo: courtesy of Kinross Gold Corporation.