Kinross Tasiast strike ends – no production hit
Canadian miner Kinross Gold's (TSX:G) (NYSE:KGC) on Monday announced employees at the company’s Tasiast mine in Mauritania have ended a three-week strike.
Toronto-based Kinross said striking employees began returning to work on June 11, 2016 and negotiations with the staff delegates on a new collective labour agreement and other outstanding items are expected to re-commence within ten days. Employees retain the right to strike during negotiations subject to the labour laws of the West African nation according to a media statement.
According to Kinross the strike is not expected to impact its annual production guidance for the region and did not affect the expansion project at the mine which was announced in March.
Phase one of the $300 million project envisages 409,000 ounces of gold per year by the first quarter of 2018. Last year, the Tasiast open pit operation produced 219,000 ounces.
Kinross paid $7.1 billion for Red Back Mining, owner of the mine in 2010, but has since written off most of that investment.
The miner expanded its portfolio last year by acquiring two Nevada properties – the Bald Mountain mine and 50% of the Round Mountain mine – from Barrick Gold (TSX, NYSE:ABX).
Kinross expects to produce a record 2.7 – 2.9 million ounces of gold in 2016 at an all-in cost of $890–$990 an ounce from mines in Ghana, Russia, the US, Brazil and Chile. Shares in Kinross have rocketed this year and is up 162% so far in 2016 affording the company a $8 billion value on the Toronto stock exchange.