Kinross expects to revive mine on better gold price September 25, 2003
By Reuters
Denver - Encouraged by a sturdier gold price, Kinross Gold, the world's seventh-biggest gold producer, expected to restart its stalled Refugio gold mine in Chile in the second half of next year, its chief executive, Robert Buchan, said yesterday.
However, the company said it would prefer to have no joint venture projects. One of its joint venture projects is with South Africa's AngloGold.
Buchan said the firm was asking its board for formal approval to reopen the mine, which suspended open-pit mining in 2001, the year when bullion prices dipped to $250 an ounce.
A meeting has been set up with joint owner Bema Gold for early October to discuss the future of Refugio, which is on care and maintenance.
"By going to our board for approval, by definition, we expect to go ahead," Buchan said.
Kinross is also involved in an exploration programme at Refugio that aims to increase the group's reserve base which, representing six-and-a-half years of mine life, is the lowest of North America's top four gold producers.With production of about 2 million ounces a year, Kinross is North America's fourth-biggest gold producer and has a large reserve base to replace annually.
Buchan said Kinross was doing this organically through drilling at a number of its projects, but he said Kinross was also keeping an eye out for acquisitions.
Kinross has several joint ventures, including three with rival Placer Dome, one with Barrick Gold and one with AngloGold. - Reuters
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