Kinross Gold

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Kinross Gold Corporation
Industry Mining
Founded 1993
Founder Robert Buchan
Headquarters Toronto, Canada
Key people
J. Paul Rollinson, CEO
Products Gold
Revenue $3.8 billion (2013)
Number of employees
9,000 (2013)

Kinross Gold Corporation is a Canadian-based gold mining company with mines and projects in the United States, Brazil, Chile, Russia, Ghana and Mauritania. It is one of the largest gold companies.[1] Kinross began from the amalgamation of three companies in 1993, 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.


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 amalgamation of three companies:Plexus Resources Corporation, CMP Resources and the numbered company 1021105 Ontario Corp. This resulted in the new company owning a stake and royalties on a mining property in Fallon, Nevada and the QR Mine in British Columbia.[2] Kinross was listed on June 1, 1993 on the TSX and NASDAQ.

Kinross merged with Amax Gold (formerly known as Kinam Gold)[3] in 1998, which gave Kinross the Fort Knox Gold Mine.[4] In 2002 Kinross, TVX Gold (TVX), 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,[5] but was approved by shareholders in January 2003.[6] 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.[7] Kinross also sold the Aquarius Project (acquired as part of the Echo Bay merger[8]) in 2006 to St. Andrews Goldfields (who operated the nearby Stock Gold Mine).[9] In 2002 Kinross and Placer Dome combined their assets in Timmins, Ontario and formed the Porcupine Joint Venture (51% Placer Dome, 49% Kinross).[10] In 2007 Kinross traded 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.[11] 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).[12]

Financial Performance[edit]

In 2015 in the wake of declining precious metal prices, Kinross closed their regional office in Denver, Colorado, and eliminated 110 corporate position in Denver, Chile, Spain, and Toronto.[13] 2016 Kinross' credit raiding was lowered to "Junk" status by Standard & Poor's, the decision was largely based on the share of their production that came from mines in Russia, which it saw as a significant risk.[14]

Kinross Gold incurred a net loss of $989 million for the year ending December 31, 2015. [15]


Kinross Gold operates mining projects in North and South America, Russia, and Africa. In 2013 the company's gold production was 2,631,092 gold equivalent ounces.[16] In 2013 the company's silver production was 9 million ounces, making the company the 18th largest silver producer in the world.[17]

Fort Knox Gold Mine[edit]

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.[4][18] The Fort Knox complex has two open pits (Fort Knox, and the now closed True North),[19] with ore from the Fort Knox pit being processed on site at the Fort Knox mill.[4] In 2013 the mine produced 421,641 ounces of gold.[18]

Buckhorn Mine[edit]

Main article: Buckhorn Gold Mine

Kinross operates the Buckhorn mine and Kettle River mill in the US State of Washington.[20]

Round Mountain Gold Mine[edit]

Round Mountain Gold Mine

Kinross operates the Round 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.[21] Kinross' merger with Echo Bay Mines gave them a 50% share of Round Mountain, with Barrick retaining the remainder.[22] As of 2011 the mine was undergoing expansion to increase the size of the pit and related infrastructure. The expansion has been subject to opposition by various non-governmental organizations.[23][24]

Paracatu Gold Mine[edit]

Main article: Paracatu mine

Kinross received their original stake in the Brazilian mine when they merged with TVX, and purchased the remainder from Rio Tinto in 2004.[25] In 2013, Paracatu produced 500,380 gold equivalent ounces.

Maricunga Gold Mine[edit]

Main article: Maricunga Gold Mine

Kinross first acquired 50% ownership in the properter with the merger with Amax Gold (which changed its name to Kinam).[26] The 2007 purchase of Bema Gold brought the other 50%.[27]

On August 24, 2016, Kinross announced it will be suspending operations at Maricunga and is reducing the workforce by 300 employees. [28]

The book value of Maricunga was $US 373 million as at December 31, 2015.[29]

La Coipa Gold Mine[edit]

Main article: La Coipa Gold Mine

The TVX merger resulted in Kinross' stake in the Lo Coipa open pit mine, the remainder was purchased from Goldcorp in 2007.[30]

Kupol Mine[edit]

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.[31] 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 subsidiary purchased the remaining 25% from the government in 2011.[32][33]

Dvoinoye Gold Mine[edit]

Main article: Dvoinoye Gold Mine

The Dvoinoye Gold Mine is located approximately 100 kilometres (60 mi) from Kupol, and opened in 2013. Dvoinoye is an underground mine which produces 1000 tonnes of gold ore per day. Ore from the mine is processed at Kupol.[34]

Tasiast Gold Mine[edit]

Main article: Tasiast Gold Mine

Red Back Mining began production at Tasiast in 2008 in Mauritania. In 2010, Kinross purchased Red Back to acquire the mine. In early 2014, a feasibility study for an expanded Tasiast operation with a 38,000 tonne per day (tpd) mill was completed. [35]

Chirano Gold Mine[edit]

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.[12] The mine is made up of multiple open pits and an underground operation called Akwaaba.[36]

Fraud Allegations, Class Action Lawsuits and Settlements[edit]

In 2012, class action lawsuits were launched in the U.S. and Canada alleging Kinross Gold overstated the value of its Tasiast mine in its financial statements and made other false statements. [37] The Ontario action related to allegations that (1) Kinross ought to have reported a write down of its goodwill (there was an unreported goodwill impairment) in May 2011; (2) Kinross failed to disclose that its drilling program for the Tasiast mine had revealed high amounts of low-grade ore; and (3) Kinross misrepresented that the expansion project for the Tasiast mine remained on schedule. [38]

In 2015, the parties reached settlement agreements which included payments by Kinross totalling approximately $US 40 million. [39]

Corporate responsibility[edit]

Kinross claims a strong commitment to responsible mining, as outlined on its corporate website via their Ten Guiding Principles for Corporate Responsibility.[40] In 2007, Kinross achieved an A− ranking in Maclean's magazine's annual assessment of socially responsible companies,[41] the highest ranking of any Canadian mining company.

For Kinross' cooperation with an environmental's group in Washington state, and for five out of eight mines being in compliance with the International Cyanide Management Code (as of May 2013, the Company has eight of its nine mines in compliance with the International Cyanide Management Code),[42] Kinross was recognized as one of Canada's Top 50 Most Responsible Corporations by Maclean's magazine and Jantzi Research in 2009.[43]

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.[44] 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.[45]

In 2013, Kinross was named to the Dow Jones Sustainability World Index for the third consecutive year, as well as the DJSI North American Index, the Ethibel Excellence Investment Register, and the Ethical Global Equity and ECPI Global Carbon Indices. For the fifth consecutive year, the Company was named to the Jantzi Social Index, and as one of Canada’s Best 50 Corporate Citizens by Corporate Knights magazine for the fourth year.[46]

See also[edit]


  1. ^ Basov, Vladimir (26 February 2015). "UPDATED: The world's top 10 gold producers". Retrieved 11 March 2016. 
  2. ^ "Shareholders back merger forming Kinross Gold". Deseret News. 31 May 1993. Retrieved 2 September 2011. 
  3. ^ Kinross Gold (23 June 2006). "Walter Creek Valley Fill Heap Leach Facility Project Description" (PDF). Alaska DNR. p. 4. Retrieved 3 September 2011. 
  4. ^ a b c Scales, Marilyn (June 2003). "How to Get Gold Out of Fort Knox". Canadian Mining Journal. Retrieved 31 August 2011. 
  5. ^ "COMPANY NEWS – Kinross, Echo Bay, TVX Delay Merger". Canadian Mining Journal. 20 November 2002. Retrieved 2 September 2011.  C1 control character in |title= at position 14 (help)
  6. ^ "Newmont increases dividend". 31 January 2003. Retrieved 2 September 2011. 
  7. ^ Leng Yeong, Cheng (4 August 2006). "Kinross Has Record $65.6 Million Profit on Gold Rally (Update4)". Bloomberg. Retrieved 2 September 2011. 
  8. ^ "Merger improves viability of gold deposit project". Northern Ontario Business. 26 June 2002. Retrieved 2 September 2011. 
  9. ^ "Kinross To Sell Aquarius Project". 29 December 2005. Retrieved 2 September 2011. 
  10. ^ Vieira, Paul (12 April 2002). "Placer Dome, Kinross to join forces in Ontario gold operation: Kinross gains mill access". National Post. p. FP7. 
  11. ^ "Analysts see Goldcorp, Kinross asset swap gains". Bloomberg. 26 Sep 2007. Retrieved 2 September 2011. 
  12. ^ a b "In Canada, a Merger for Miners of Gold". The New York Times (AP). August 2, 2010. Retrieved August 2, 2010. 
  13. ^ Ian, McGugan (10 November 2015). "Kinross to shut down Denver office, cut 110 corporate jobs". The Globe and Mail. Retrieved 12 March 2016. 
  14. ^ Bochove, Danielle (18 February 2016). "Kinross Gold's credit rating cut to junk". The Globe and Mail. 
  15. ^ See page FS4 of 2015 Kinross Gold Annual Report
  16. ^
  17. ^ "Silver Institute largest silver producer rankings". Retrieved 16 July 2014. 
  18. ^ a b "Fort Knox, Alaska, USA". Kinross Gold. Retrieved 27 August 2011. 
  19. ^ "Kinross Gold Corp (KGC)". Reuters. Retrieved 31 August 2011. 
  20. ^ "Kettle River-Buckhorn, USA". Kinross Gold. Retrieved 27 August 2011. 
  21. ^ Hardrock Mining on Federal Lands. National Research Council (U.S.). p. 136. ISBN 0-309-06596-8. 
  22. ^ "Round Mountain, USA". Kinross Gold. Retrieved 27 August 2011. 
  23. ^ Harding, Adella (7 July 2010). "BLM OKs Round Mountain expansion". Elko Daily Free Press. Retrieved 31 August 2011. 
  24. ^ Harding, Adella (22 Aug 2010). "Appeals filed against Round Mountain". Elko Daily Free Press. Retrieved 31 August 2011. 
  25. ^ "Paracatu, Brazil". Kinross Gold. Retrieved 27 August 2011. 
  26. ^ "Glossary". Kinross Gold. Retrieved 3 September 2011. 
  27. ^ "Maricunga, Chile". Kinross Gold. Retrieved 27 August 2011. 
  28. ^
  29. ^ Page FS 54 of December 31, 2015 Kinross Gold Annual Report
  30. ^ "La Coipa, Chile". Kinross Gold. Retrieved 27 August 2011. 
  31. ^ Paxton, Robin (11 August 2009). "Russia revives gold mining in the Gulags". Reuters. Retrieved 28 August 2011. 
  32. ^ "Kupol, Russia". Kinross Gold. Retrieved 27 August 2011. 
  33. ^ "Kupol Gold and Silver Mine, Russia". Retrieved 2 September 2011. 
  34. ^ Koven, Peter (9 October 2013). "Kinross opens Dvoinoye mine in Russia". Financial Post. Retrieved 1 June 2014. 
  35. ^ "Tasiast feasibility report" (PDF). Kinross Gold. Retrieved 31 March 2014. 
  36. ^ "Kinross Agrees to Acquire Red Back". Engineering & Mining Journal. 14 September 2010. Retrieved 1 September 2011. 
  37. ^ See page MDA 36 on 2015 Kinross Gold Annual Report
  38. ^ Paragraphs 4 and 158 of the court decision - Bayens v Kinross - Ontario Superior Court -
  39. ^ See page MDA 36 on 2015 Kinross Gold Annual Report
  40. ^ "Kinross Corporate Responsibility Page". Kinross Gold. 
  41. ^ "Doing business the right way". Macleans. November 16, 2007. Retrieved 27 August 2011. [dead link]
  42. ^ "2012 CR Data Supplement" (PDF). Kinross Gold Corporation. 
  43. ^ "Jantzi-Macleans 50 Most Socially Responsible Corporations 2009". Maclean's. June 18, 2009. Retrieved 27 August 2011. 
  44. ^ "Reasons for Selection, 2009 Greater Toronto's Top Employers Competition". 
  45. ^ "Kinross named to Dow Jones Sustainability World Index". 
  46. ^ =

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