Kinross Gold

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Kinross Gold Corporation
Type Public
Traded as TSX: K NYSE: KGC
Industry Mining
Founded 1993
Founder(s) Robert Buchan
Headquarters Toronto, Canada
Key people Tye Burt, President and CEO
Products Gold
Revenue $3.01 billion (2010)
Net income $771.6 million (2010)
Employees 7,500 (2010)
Divisions Crown Resources Corp.
Website www.kinross.com

Kinross Gold Corporation (TSX: K, NYSE: KGC) is a Canadian-based gold mining with mines and projects in Canada, the United States, Brazil, Chile, Ecuador, Russia, Ghana and Mauritania. Kinross was founded after a merger in 1993 of three companies, initially owning a mine in British Columbia and royalties on a mine in Nevada. Following a series of takeovers and mergers, Kinross now owns ten active gold mines on four continents.

Contents

[edit] History

Kinross' merger with Echo Bay Mines resulted in ownership of Lupin Mine, which was sold in 2006.

Kinross Gold Corporation was founded in 1993 following the merger of Plexus Resources Corporation, CMP Resources and the numbered company 1021105 Ontario Corp. The merger resulted in the new company owning a stake and royalties on a mining property in Fallon, Nevada and the QR Mine in British Columbia.[1] Kinross merged with Amax Gold (formerly known as Kinam Gold)[2] in 1998, which gave Kinross the Fort Knox Gold Mine.[3] In 2002 Kinross, TVX Gold, and Echo Bay Mines proposed a $3-billion merger, which would combine the three companies, while retaining the name Kinross Gold. The merger was delayed from its original closing due to Kinross' inability to raise the necessary funds,[4] but was approved by shareholders in January 2003.[5] In 2006 Kinross sold the Lupin Mine (in Canada) and the Blanket Mine (in Zimbabwe), and bought Crown Resources Corporation, which gave them ownership of the mineral resource Buckhorn Mountain (later Buckhorn Gold Mine) and the associated mineral processing facilities.[6] Kinross also sold the Aquarius Project (acquired as part of the Echo Bay merger[7] ) in 2006 to St. Andrews Goldfields (who operated the nearby Stock Gold Mine).[8] In 2002 Kinross and Placer Dome combined their assets in Timmins, Ontario and formed the Porcupine Joint Venture (51% Placer Dome, 49% Kinross).[9] In 2007 Kinross tradded assets with Goldcorp, Kinross received $200-million and the remaining portion of the La Coipa Gold Mine it had acquired with the TVX merger, in exchange for giving up its 49% of the Porcupine Joint Venture and 31.9% of the Musselwhite Mine.[10] In 2010 Kinross purchased the remaining shares (91%) of Red Back Mining for $7.1-billion. The purchase brought with it the two gold mines in Africa (Chirano and Tasiast).[11]

[edit] Operations

Kinross Gold operates mines and projects in North and South America, Russia, and Africa. In 2011 the company's gold production was 2,610,373 gold equivalent ounces.[12]

[edit] Fort Knox Gold Mine

Main article: Fort Knox Gold Mine

Kinross has a 100% stake in the Fort Knox Gold Mine, which operates as an open pit in Alaska. The area was prospected as early as 1913, but no mining took place until 1996. In 1998 the owner of Fort Knox (Amex Gold) merged with Kinross.[3][13] The Fort Knox complex has two open pits (Fort Knox, and the now closed True North),[14] with ore from the Fort Knox pit being processed on site at the Fort Knox mill.[3] In 2010 the mine produced 349,729 ounces of gold.[13]

[edit] Buckhorn Mine

Main article: Buckhorn Gold Mine

Kinross operates the Buckhorn mine and Kettle River mill in the US State of Washington.[15]

[edit] Round Mountain Gold Mine

Round Mountain Gold Mine
Main article: Round Mountain Gold Mine

Kinross operates the Roud Mountain Gold Mine in Nye County, Nevada. Round Mountain is a joint venture with Barrick Gold. Round Mountain is located in an area where mining has taken place since 1906, having produced 350,000 ounces of gold over a sixty-year period.[16] Kinross' merger with Echo Bay Mines which gave them a 50% share of Round Mountain, with Barrick retaining the remainder.[17] As of 2011 the mine was undergoing expansion to increase the size of the pit and related infrustructure. The expansion has been subject to opposition by varios non-governmental organizations.[18][19]

[edit] Paracatu Gold Mine

Main article: Paracatu gold Mine

Paracatu mine - Kinross received the original stake in Brazilian mine when they merged with TVX, and purchased the remainder from Rio Tinto in 2004.[20]

[edit] Crixás Gold Mine

Main article: Crixás Gold Mine

Crixás mine - The Kinross-TVX merger also resulted in Kinross receiving 50% of the Crixás mine, the remaining 50% is owned by AngloGold Ashanti, who operates the mine.[21]

[edit] Maricunga Gold Mine

Main article: Maricunga Gold Mine

Kinross firs acquired 50% ownership in the properter with the merger with Amax Gold (which changed its name to Kinam).[22] The 2007 purchase of Bema Gold brought the other 50%.[23] The mine is undergoing expansion to increase production and to upgrade related infrastructure.[24]

[edit] La Coia Gold Mine

Main article: La Coia Gold Mine

La Coia mine - The TVX merger resulted in Kinross' stake in the Lo Coipa open pit mine, the remainder was purchased from Goldcorp in 2007.[25]

[edit] Kupol Mine

Main article: Kupol Gold Mine

The Kupol Gold Mine is a combination open-pit and underground gold mine in Chukotka Autonomous Okrug, Russia, in an area originally mined in the 1930s by prisoners of the Gulag.[26] Bema Gold Corporation financed the $425-million project through various international banks, agencies, and equipment companies, plus the Chukotka government. Kinross acquired the property (at the time 75% of the mine) through the acquisition of Bema Gold, and a subsidairy purchased the remaining 25% from the government in 2011.[27][28]

[edit] Tasiast Gold Mine

Main article: Tasiast Gold Mine

Red Back Mining began production at Tassiast in 2008 in Mauritania. In 2010 Kinross purchased Red Back and began expansion of the mine. As of August 2011 the expansion project (schedule completion in 2014) is expected to be $1 billion over budget. It is scheduled to produce 1.5 million ounces of gold per year. [11] [29][30][31]

[edit] Chirano Gold Mine

Main article: Chirano Gold Mine

The Red Back Mining purchase gave Kinross a 90% stake in the Chirano Gold Mine, while the remainder is held by the Government of Ghana. The mine produced nearly a quarter million ounces of gold in 2011. [11] The mine is made up of multiple open pits and an underground operation called Akwaaba.[32]

[edit] Corporate responsibility

Kinross claims a strong commitment to responsible mining, as outlined on its corporate website via their Ten Guiding Principles for Corporate Responsibility.[33] Kinross also achieved an A- ranking in Maclean's magazine's annual assessment of socially responsible companies,[34] the highest ranking of any Canadian mining company, and was selected as a constituent of the Jantzi Social Index.[citation needed] For Kinross' cooperation with an environmental group in Washington state, and for five out of eight mines being in compliance with the International Cyanide Management Code, Kinross was recognized as one of Canada's Top 50 Most Responsible Corporations by Maclean's magazine and Jantzi Research in 2009.[35] In October 2008, Kinross was named one of Greater Toronto's Top Employers by Mediacorp Canada Inc., which was announced by the Toronto Star newspaper.[36] In 2011, Kinross was named to the Dow Jones Sustainability World Index (DJSI) and to the Dow Jones Sustainability North America Index for the second consecutive year.[37]

[edit] See also

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[edit] References

  1. ^ "Shareholders back merger forming Kinross Gold". Deseret News. 31 May 1993. http://news.google.com/newspapers?id=4WJTAAAAIBAJ&sjid=4IQDAAAAIBAJ&pg=1414,7183955&dq=kinross+merger&hl=en. Retrieved 2 September 2011. 
  2. ^ Kinross Gold (23 June 2006). "Walter Creek Valley Fill Heap Leach Facilty Project Description" (PDF). Alaska DNR. p. 4. http://dnr.alaska.gov/mlw/mining/largemine/fortknox/pdf/heapleachpd.pdf. Retrieved 3 September 2011. 
  3. ^ a b c Scales, Marilyn. "How to Get Gold Out of Fort Knox". Canadian Mining Journal. doi:June 2003. http://www.canadianminingjournal.com/news/how-to-get-gold-out-of-fort-knox/1000152441/. Retrieved 31 August 2011. 
  4. ^ "COMPANY NEWS – Kinross, Echo Bay, TVX Delay Merger". Canadian Mining Journal. 20 November 2002. http://www.canadianminingjournal.com/news/company-news--kinross-echo-bay-tvx-delay-merger/1000026617/. Retrieved 2 September 2011. 
  5. ^ "Newmont increases dividend". 31 January 2003. http://www.miningweekly.com/article/newmont-increases-dividend-2003-01-31. Retrieved 2 September 2011. 
  6. ^ Leng Yeong, Cheng (4 August 2006). "Kinross Has Record $65.6 Million Profit on Gold Rally (Update4)". Bloomberg. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aVfXPahtN8A4&refer=canada. Retrieved 2 September 2011. 
  7. ^ "Merger improves viability of gold deposit project". Northern Ontario Business. 26 June 2002. http://www.northernontariobusiness.com/Around-the-North/Merger-improves-viability-of-gold-deposit-project-(6-02).aspx. Retrieved 2 September 2011. 
  8. ^ "Kinross To Sell Aquarius Project". thestreet.com. 29 December 2005. http://www.thestreet.com/markets/metals/10259526.html. Retrieved 2 September 2011. 
  9. ^ Vieira, Paul (12 April 2002). "Placer Dome, Kinross to join forces in Ontario gold operation: Kinross gains mill access". National Post: p. FP7. 
  10. ^ "Analysts see Goldcorp, Kinross asset swap gains". Bloomberg. 26 Sep 2007. http://uk.reuters.com/article/2007/09/26/goldcorp-kinross-idUKN2620866720070926. Retrieved 2 September 2011. 
  11. ^ a b c "In Canada, a Merger for Miners of Gold". The New York Times (AP). August 2, 2010. http://www.nytimes.com/2010/08/03/business/global/03gold.html. Retrieved August 2, 2010. 
  12. ^ http://tmx.quotemedia.com/article.php?newsid=48486583&qm_symbol=K
  13. ^ a b "Fort Knox, Alaska, USA". Kinross Gold. http://kinross.com/operations/operation-fort-knox-alaska-usa.aspx. Retrieved 27 August 2011. 
  14. ^ "Kinross Gold Corp (KGC)". Reuters. http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=KGC. Retrieved 31 August 2011. 
  15. ^ "Kettle River-Buckhorn, USA". Kinross Gold. http://kinross.com/operations/operation-kettle-river-buckhorn-usa.aspx. Retrieved 27 August 2011. 
  16. ^ Hardrock Mining on Fedral Lands. National Research Council (U.S.). pp. 136. ISBN 0-309-06596-8. http://books.google.com/books?id=xVIOYm9kZPsC&pg=PA136&dq=%22round+mountain+mine%22&hl=en&ei=toZeTr67DsPorAeiwe3KCA&sa=X&oi=book_result&ct=result&resnum=8&ved=0CEgQ6AEwBzge#v=onepage&q=%22round%20mountain%20mine%22&f=false. 
  17. ^ "Round Mountain, USA". Kinross Gold. http://kinross.com/operations/operation-round-mountain,-usa.aspx. Retrieved 27 August 2011. 
  18. ^ Harding, Adella (7 July 2010). "BLM OKs Round Mountain expansion". Elko Daily Free Press. http://elkodaily.com/mining/article_9c75e91c-8a27-11df-895c-001cc4c002e0.html. Retrieved 31 August 2011. 
  19. ^ Harding, Adella (22 Aug 2010). "Appeals filed against Round Mountain". Elko Daily Free Press. http://elkodaily.com/news/local/article_3c0c700c-ae79-11df-a1bd-001cc4c002e0.html. Retrieved 31 August 2011. 
  20. ^ "Paracatu, Brazil". Kinross Gold. http://kinross.com/operations/operation-paracatu-brazil.aspx. Retrieved 27 August 2011. 
  21. ^ "Crixás, Brazil". Kinross Gold. http://kinross.com/operations/operation-crixas-brazil.aspx. Retrieved 27 August 2011. 
  22. ^ "Glossary". Kinross Gold. http://www.kinross.com/investor-centre/glossary.aspx#k. Retrieved 3 September 2011. 
  23. ^ "Maricunga, Chile". Kinross Gold. http://kinross.com/operations/operation-maricunga-chile.aspx. Retrieved 27 August 2011. 
  24. ^ Hill, Liezel (5 August 2010). "Kinross puts $290m price tag on Maricunga expansion". Creamer Media's Mining Weekly. http://www.miningweekly.com/article/kinross-puts-290m-price-tag-on-maricunga-expansion-2010-08-05. Retrieved 31 August 2011. 
  25. ^ "La Coipa, Chile". Kinross Gold. http://kinross.com/operations/operation-la-coipa-chile.aspx. Retrieved 27 August 2011. 
  26. ^ Paxton, Robin (11 August 2009). "Russia revives gold mining in the Gulags". Reuters. http://www.reuters.com/article/2009/08/12/businesspro-us-russia-gold-idUSTRE57B01E20090812. Retrieved 28 August 2011. 
  27. ^ "Kupol, Russia". Kinross Gold. http://kinross.com/operations/operation-kupol-russia.aspx. Retrieved 27 August 2011. 
  28. ^ "Kupol Gold and Silver Mine, Russia". Mining-Technology.com. http://www.mining-technology.com/projects/kupalgoldandsilver/. Retrieved 2 September 2011. 
  29. ^ "Tasiast, Mauritania". Kinross Gold. http://kinross.com/operations/operation-tasiast-mauritania.aspx. Retrieved 27 August 2011. 
  30. ^ "Kinross eyes further growth at Tasiast mine". Financial Post. August 18, 2011. http://www.cbc.ca/fp/story/2011/08/18/5273940.html. Retrieved 28 August 2011. 
  31. ^ Keith, Darcy (15 August 2011). "Upgrades for Kinross, Sprott and CN Rail". The Globe and Mail. http://www.theglobeandmail.com/globe-investor/investment-ideas/features/eye-on-equities/upgrades-for-kinross-sprott-and-cn-rail/article2129993/. Retrieved 28 August 2011. 
  32. ^ "Kinross Agrees to Acquire Red Back". Engineering & Mining Journal. 14 September 2010. http://www.e-mj.com/index.php/news/leading-developments/468-kinross-agrees-to-acquire-red-back.html. Retrieved 1 September 2011. 
  33. ^ "Kinross Corporate Responsibility Page". Kinross Gold. http://www.kinross.com/cr/index.html. 
  34. ^ "Doing business the right way". Macleans. November 30, 2007. http://www.macleans.ca/article.jsp?content=20071130_114344_4508&source=srch&page=5. Retrieved 27 August 2011. 
  35. ^ "Jantzi-Macleans 50 Most Socially Responsible Corporations 2009". Maclean's. June 18, 2009. http://www2.macleans.ca/2009/06/18/jantzi-macleans-50-most-socially-responsible-corporations/29/. Retrieved 27 August 2011. 
  36. ^ "Reasons for Selection, 2009 Greater Toronto's Top Employers Competition". http://www.eluta.ca/top-employer-kinross-gold. 
  37. ^ "Kinross named to Dow Jones Sustainability World Index". http://www.kinross.com/news-articles/2011/090811-kinross-named-to-dow-jones-sustainability-world-index.aspx. 

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