Eramet produces first lithium from Centenario plant in Argentina
Eramet becomes the first European company to produce lithium carbonate at an industrial scale.
Canadian miner Kinross Gold (TSX:G) (NYSE:KGC) is expanding operations in Russia by buying a development project in the eastern part of the country for $283 million from Cyprus-based N-Mining.
The Toronto-based company, which already has two underground gold mines in Russia, said the Chulbatkan gold project was an “excellent fit” as it would enable Kinross to leverage its expertise as a world-class, cold climate heap leach operator.
“Chulbatkan is an exciting, high-quality development project with significant upside potential and low relative execution risk, located in a country where we have had extensive experience and success, and maintain a strategic and competitive operating advantage,” chief executive J. Paul Rollinson said in a media statement.
Kinross already operates the Kupol and Dvoinoye mines in Russia, which account for roughly 20% of its 2019 production guidance of 2.5 million ounces
The deal includes payments of about $113 million in cash and $170 million in Kinross shares. It also gives N-Mining a small share of returns from production.
Preliminary estimates for Chulbatkan point to a six-year mine life with initial capex of $500 million, producing 1.8 million ounces with all-in sustaining costs about $550 per gold ounce.
The project has exploration and mining licences valid until the end of 2037. It also counts with starter infrastructure, including a base camp, trial pit, non-commissioned processing plant and heap leach pad.
Kinross already operates the Kupol and Dvoinoye mines in Russia, which account for roughly 20% of its 2019 production guidance of 2.5 million ounces.
News of the acquisition came as the gold producer, which reports in US dollars, logged earnings of $71.5 million for the quarter ending June 30, up from $2.4 million in the same quarter last year.
Adjusted net earnings came to $79.6 million, or six cents per share, compared with $37.8 million or three cents per share in the same period last year.
Revenue from metal sales was $837.8 million for the quarter, compared with $775 million last year on an increase in metal sold.
Robust gold prices have also made the company mull the reopening of some halted operations. In May, Kinross revealed it was evaluating options for returning to long-term production in Chile, the world’s top copper producing country, where the company already has two key assets — La Coipa gold-silver mine and the Lobo-Marte project.
