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TORONTO, CANADA: “We are pleased to have signed the loan agreement, which is indicative of the support from a multilateral lender, an export credit agency and two international banks for our Tasiast operation. The completion of this facility underscores the attractive foreign investment climate in Mauritania,” said J. Paul Rollinson, Kinross President and CEO.
Kinross Gold Corporation recently announced that its wholly-owned subsidiary, Tasiast Mauritanie Limited S.A., has signed a definitive loan agreement for up to US$300 million for its Tasiast operation in Mauritania with the IFC (a member of the World Bank Group), Export Development Canada, and with the participation of ING Bank and Société Générale.
“We are pleased to have signed the loan agreement, which is indicative of the support from a multilateral lender, an export credit agency and two international banks for our Tasiast operation. The completion of this facility underscores the attractive foreign investment climate in Mauritania,” said J. Paul Rollinson, Kinross President and CEO. “Tasiast has continued to achieve strong results and has operationally outperformed since the completion of the initial expansion. We believe this agreement will contribute to the long-term success of Tasiast for the benefit of both Kinross and the people of Mauritania.”
Aliou Maiga, IFC’s Regional Director for West and Central Africa said: “This is IFC’s largest ever investment in Mauritania and aligns with our strategy to support private sector development in Africa. IFC’s support for Tasiast reflects the World Bank Group’s alignment with the Government of Mauritania’s development agenda and the project’s commitment to maintain best-in-class environmental and social practices and sustain skilled employment. The project will support the Government of Mauritania’s investments in the country’s economic and social development.”
The agreement was signed following a comprehensive due diligence process with the lenders, including site visits, meetings with the Government of Mauritania, and significant technical and environmental reviews and evaluations.
The 8-year loan, which is non-recourse to Kinross, matures in December 2027 and has a floating interest rate of LIBOR plus 4.38%. The initial drawdown under the loan agreement is expected in early 2020, subject to the satisfaction of customary conditions precedent.
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia, Mauritania, Chile and Ghana. Kinross’ focus is on delivering value based on the core principles of operational excellence, balance sheet strength, disciplined growth and responsible mining.
The Tasiast mine is an open-pit operation located in northwestern Mauritania, approximately 300 kilometres north of the capital Nouakchott.
Tasiast processes ore via mill and dump leach. Commissioning of the Tasiast Phase One expansion is complete and the SAG mill continues to outperform, consistently achieving throughput above 12,000 tonnes per day (t/d). Phase One has helped increase production and reduce costs at the mine.
Kinross is proceeding with the Tasiast 24k project to incrementally increase throughput capacity to 24,000 t/d by mid-2023. The capital-efficient project is expected to further increase production, lower costs, and generate significant cash flow and attractive returns. It is expected to extend mine life by four years to 2033.