Name of the Project
Tasiast Phase 2 expansion.

Location
Mauritania.

Client
Kinross Gold Corporation.

Project Description
The Tasiast Phase 1 project is nearing completion.

The Phase 2 expansion of the Tasiast mine is expected to transform the mine into a large, world-class operation, with low costs and a long mine life.

The feasibility study on the Phase 2 expansion has reaffirmed the previous prefeasibility study results and has factored in recent improvements at Tasiast. 

The feasibility study is assessing the installation of additional mill throughput of 18 000 t/d to the Phase 1 project's 12 000 t/d capacity for a total combined capacity of 30 000 t/d. 

The expansion will replace the two current ball mills with a new larger ball mill, add new leaching, thickening and refinery capacity, and extend the mining fleet.

A new power plant will be added to power the 30 000 t/d mill, which is forecast to have an average production of about 812 000 oz/y of gold for the first five years of operation (2020 to 2024), with a forecast cumulative gold production of 6.3-million ounces of gold from 2020 to 2029.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The combined two-phase expansion has an after-tax net present value, at a 5% discount rate, of $1.43-billion. The Phase 2 estimated incremental internal rate of return is estimated at 24%.

Value
Initial plant and infrastructure costs have been estimated at $590-million.

Duration
Initial construction on Phase 2 is expected to begin in early 2018, with commercial production expected to start in the third quarter of 2020.

Latest Developments
Kinross has placed the Phase 2 project on hold. The government of Mauritania has rejected a key permit and has requested discussions about the miner’s activities in the country.

It is understood that the request from government stems from a desire to seek greater benefits for the country.

The company is considering alternative throughput approaches to expand the project, while it continues to seek clarity on the matter.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Kinross Gold Corporation senior VP, investor relations and corporate development Tom Elliott, tel +1 416-365-3390 or email tom.elliott@kinross.com.