Canadian exploration company Kinross Gold is set to spend more than $1bn to expand its mines in Mauritania and Nevada, US, to boost production and ensure free cash-flows.
With initial plant and infrastructure capital costs of around $590m, the phase two expansion of Tasiast mine in Mauritania is expected to increase its mill capacity to 30,000tpd.
Through the expansion programme, the mine will be able to produce an average of about 812,000 gold ounces per annum for the first five years, with a free cash-flow of $2.2bn over the mine-life.
Initial construction for the expansion is scheduled to begin early next year, while commercial production is likely to start in the third quarter of 2020.
Kinross Gold President and CEO Paul Rollinson said: "Our decision to proceed with the Tasiast phase two expansion underscores our determination to realise the potential of this world-class asset and generate significant value for our shareholders.
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"This strong improvement in Tasiast's performance is expected to positively impact overall company performance metrics, strengthening our production profile and increasing cash-flow.”
In addition, the company is proceeding with the Round Mountain Phase W project in Nevada, in an attempt to extend add a further five years of production.
Phase W project is expected to add 1.5 million ounces of gold, and understood to have an overall operations cost of $445m, including initial plant and infrastructure capital costs of $230m, as well as capitalised stripping of $215m.
According to the company, financing for the two projects will be arranged from existing liquidity and operating cash-flows.
Image: Tasiast, Mauritania. Photo: courtesy of Kinross Gold Corporation.