The government of Mauritania has inked a definitive agreement with Kinross Gold that provides more economic certainty on operation of the Tasiast gold mine.
Mauritania’s Minister of Petroleum, Mines and Energy, Abdessalem Ould Mohamed Saleh made the announcement and said that the agreement confirms the key terms of the agreement in principle signed a year ago: fuel remains duty-free; US$40 million to the company in outstanding VAT refunds; US$10 million to the government to resolve disputed matters; an updated escalating royalty structure tied to the gold price; and two government observers on the Kinross board of directors.
Tasiast open pit mine
Tasiast open pit mine and heap leach is in the midst of the 24k continuous improvement project. Throughput capacity is to reach 21,000 t/d in the first quarter of 2022 and then 24,000 t/d by mid-2023. The feasibility study projects increased production, reduced costs, and an extended mine life to 2033. In 2020, Tasiast produced 406,509 oz. of gold equivalent.
“The completion of this agreement is a testament to the quality of the strategic partnership between the Government of Mauritania and Kinross. The agreement is also indicative of the Government’s commitment and focus on attracting responsible, experienced and long-term private sector partners in Mauritania to carry out projects that advance the country’s development and provide benefits to its people,” said Minister Saleh
“We are pleased to finalize the balanced agreement with the Government of Mauritania to further strengthen our longstanding and constructive relationship. We look forward to continue delivering strong results at Tasiast for the benefit of both Kinross and Mauritania,” said J. Paul Rollinson, Kinross Gold President and CEO.