Mauritania Says Kinross to Invest $1.5 Billion in Tasiast Mining Project

Kinross Gold Corp. will spend $1.5 billion on Mauritania’s Tasiast mine that it acquired in September, according to the northwest African nation’s mines and industry minister.

Production of the precious metal at the mine will be an annual 1 million ounces, Mohamed Abdellahi Ould Oudaa told reporters at a mining-industry conference in Nouakchott, the capital, yesterday.

Shareholders of Toronto-based Kinross approved its C$7.4 billion ($7.3 billion) acquisition of Australia’s Red Back Mining Inc., including its mines in Mauritania and Ghana, Africa’s second-biggest gold producer.

Steve Mitchell, a spokesman for Kinross in Toronto, said the company’s feasibility study on the project is due to be completed in mid-2011. The company hasn’t disclosed an estimate for capital expenditure at Tasiast, he said in an e-mail today.

To contact the reporter on this story: Oudaa Marouf in Nouakchott via Accra at ebowers1@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.

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