Kinross begins permitting for $1.5B gold project in Chile

Kinross Gold (TSX: K, NYSE: KGC) has begun the process of obtaining the environmental permit to develop its $1.5 billion Lobo-Marte gold project in Chile’s Atacama region.

On Wednesday, its Chilean subsidiary, Mantos de Oro Mining Company, submitted the project to the Environmental Impact Assessment System (SEIA).

The project would involve the sequential mining of two pits (Marte and Lobo) to support a 16-year operating life. The heap leach plant operation is designed to process the ore at approximately 35,000 tonnes per day.

The leach pad will be static and will be expanded in stages, with the six growth phases being contemplated. The fresh water supply will be provided via a pipeline from existing wells operated by Mantos de Oro and located in an exclusion zone of the Nevado Tres Cruces National Park.

Regarding energy supply, the company stated that it will be provided by a 220 kV transmission line.

Construction of the project is expected to take 3.5 years, according to Kinross, with mining potentially commencing following permitting and after the conclusion of operations at its La Coipa mine located 50 km away.

According to a feasibility study (FS) completed for Lobo-Marte in November 2021, the mine would produce approximately 4.7 million oz. at an all-in sustaining cost estimate of $680/oz.

An important aspect of the FS included incorporating key environmental and community considerations as part of the project design. Its submission to the SEIA represents the official start of the permitting process to assess those aspects.

“We need a robust institutional framework, clear rules and a permitting and regulatory ecosystem that, while protecting the environment and ensuring compliance with the law, does not hinder investors who are betting on Chile,” Chile’s mining minister Daniel Mas said in a statement.

Lobo-Marte becomes the latest major mining project that has started its permitting. Other recent applications include copper projects by BHP and Freeport McMoRan and a lithium project by Albemarle.