UPDATE 2-Kinross pegs Mauritania mine expansion at $2.7 bln

Mon Apr 29, 2013 2:03pm EDT
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* Moving ahead with 38,000 tpd mill study at Tasiast

* Pre-feasibility shows 20-year mine life

* Output of 830,000 ounces annually in first five years

* Full feasibility to begin immediately, due Q1 2014

* Shares down 2.7 percent to C$5.41 in Toronto

By Julie Gordon

TORONTO, April 29 (Reuters) - Kinross Gold Corp on Monday estimated the cost of a scaled-back expansion of its struggling Tasiast mine in West Africa at $2.7 billion, more than some analysts had expected, sending its shares 3 percent lower.

The company said it was pushing ahead with a feasibility study for a new 38,000 tonne-per-day mill at the project, located in remote Mauritania, despite plunging gold prices and investor pressure in the mining sector to cut back on spending.

Kinross said it would make a final decision on the expansion after the study is completed in the first quarter of 2014. Still, it is already spending some $624 million on infrastructure and other aspects of the project this year.   Continued...