Kinross Gold Inks Pact with Mauritania on Tasiast Gold Mine

SEATTLE (Scrap Monster): Canada-based Kinross Gold announced that it has signed an agreement with the government of Mauritania, in settlement of disputes, thereby securing expansion to its Tasiast gold mine. The deal is similar to the one reached between Barrick Gold and the Tanzanian government.

Under the agreement, the company will pay a total of $25 million to the government in resolution of the disputes over fuel usage, tax exemptions and mining licenses pertaining to the Tasiast gold mine, located in the northwestern part of the country. A sum of $10 million will be paid upon completion of the definitive agreements. Another $15 million will be paid further to resolution of disputes related to conversion of exploration license of the mine into an exploitation permit.

In return, the Mauritania government would provide Kinross with a 30-year exploitation licence for Tasiast Sud. The government will receive 15% free carried interest in the project, with an option to purchase additional 10% interest upon completion of feasibility work. The government will repay around $40 million in tax refunds.

The Tasiast gold mine had produced 391,097 ounces of gold in 2019. The mine was shut for a period of two weeks during May this year due to workers’ strike.

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