EU’s Biggest Gold Mine Receives Gets 160 Million Euros Investment Boost

SEATTLE (Scrap Monster): Agnico Eagle Mines has announced its decision to invest approximately 160 million euros towards expanding its Kittila gold mine in northern Finland region- the biggest gold mine in the European Union. The investment will give new life to the mine, by extending its life until 2035.

According to company press release, the proposed expansion works include construction of 1.4 kilometre-deep mine shaft. It will also involve major modifications to the mill, including infrastructure and maintenance upgrades. The expansion is in line with the company’s plans to increase the company’s throughput by 25% from 1.6 million tonnes per annum to 2 million tonnes per annum by 2021. The improvements are expected to boost annual gold production by nearly 50,000 to 70,000 ounces.

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The expansion project is expected to contribute significantly to mine efficiency. The company also expects to bring down operating costs from its current levels. Further, the new shaft will enable drilling activities from deeper mineral resource areas. Incidentally, the recent exploration activities by the company had revealed encouraging mining prospects from areas deeper than 1,150 metres.

The Kittila gold mine, located about 900 kilometres north of Helsinki and 150 kilometres north of the Arctic Circle, had achieved commercial production in May 2009. The mine had produced over 200,000 ounces of gold in 2016. An underground-only operation, Kittila is Agnico Eagle’s first mine outside of Canada. As of December 2016, it has proven and probable gold reserves of 4.5 million ounces.