Kinross Gold Corp. said Tuesday it is “encouraged” by its latest effort to expand the money-losing Tasiast mine in Mauritania, a project that has been plagued with problems since it was acquired.
The Toronto-based miner said it is studying a two-phased expansion of the troubled mine in order to make it profitable. The first phase would increase ore processing capacity to 12,000 tonnes a day, up from 8,000 currently. A second phase would boost capacity to 38,000 tonnes a day.
Kinross picked up Tasiast back in 2010, when it acquired Red Back Mining Inc. for US$7.1 billion. It was one of the most overpriced deals in the history of the gold mining industry, and was largely written down as capital costs at Tasiast increased and gold prices declined.