Kinross Chile mine operations still halted after floods
Toronto-based Kinross Gold’s (TSX:K; NYSE:KGC) announced Wednesday at its Maricunga facility mining and crushing operations and operations at its SART plant remain temporarily suspended following last week's freak floods in Chile’s Northern Atacama region.
According to the company the ADR plant continues to operate, producing gold from existing material in the heap leach.
Kinross said it is still assessing the extent of the damage to roads and power lines to Maricunga, which is located 120km east of the city of Copiapó, at approximately 4,500 metres above sea level.
The main road to Maricunga from Copiapó is currently impassable and power lines are down. The site is relying on generators to supply electricity to the camps and operate the ADR plant. Facilities at site have not sustained any damage according to the company's statement.
At this time, Kinross does not anticipate that the temporary suspension of operations will impact its regional production guidance for the year.
Kinross reported record annual production in 2014 of 2.71 million ounces, but forecast output to fall this year to between 2.4 million to 2.6 million ounces.
In February the company announced that it will not proceed with a $1.6 billion expansion of its Tasiast mine in Mauritania.
Stock in the $2.5 billion company traded higher by more than 5% ahead of the announcement amid a sector-wide rally on the back of a stronger gold price.