Kinross Gold Corporation (NYSE: KGC) drops 7% following Suspension of Tasiast Mine Operations

Kinross Gold Corporation (NYSE: KGC) shares lost 7.18% after the company announced a temporary suspension of its mill operations at the Tasiast mine because of a fire on June 15, 2021. According to the company, there were no injuries because of the fire. 

Fire incident halts operations at Tasiast mine

The Canadian miner said that they will collaborate with government officials and will begin an investigation into the cause of the fire. Equally, the company is assessing the damage and any impact on the operation and will offer an update once it has been done. 

Kinross claimed in its most recent public disclosures that the Tasiast 24k project is on track to enhance throughput capacity to 21,000 tonnes a day by the end of this year and 24,000 tonnes per day by the middle of 2023. The project’s first phase is 80%complete with the power plant already 80% built, and commissioning begins soon. The thickener is now mechanically complete after the new leach tank was constructed.

Despite a 14% decline in output YoY to 88,964 oz., Kinross stated the operation ran smoothly in the March quarter. The facility attained record quarterly mill throughput rates and shift rotations returning to pre-pandemic schedules. In 2020, the mine produced 406,509 ounces of gold.

Kinross acquired Tasiast mine in 2010

Since acquiring the mine in 2010 for $7.1 million, Kinross hasn’t always had an excellent relationship with the mine. Initially, it fell short of expectations, and the miner booked $6 billion in total write-downs on the project due to the gold price collapse.  Following that, the mine underwent a series of improvements, culminating in the Tasiast 24k proposed development. Before the fire, the company indicated that the mine was on track to achieve its 2021 production estimate of 2.4 million gold equivalent oz. 

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