Kinross Gold (TSE: K)(NYSE: KGC) plans to spend USD$3 billion developing the Lobo Marte gold project in northern Chile as major miners push to secure future metal supply during record-high bullion prices.
The Canadian gold producer announced on Tuesday it had recently submitted the project’s environmental impact assessment to Chilean regulators. Additionally, Kinross outlined an initial USD$1.5-billion phase covering early operations and site construction.
Lobo Marte sits in Chile’s Atacama region, one of the world’s most active mining districts. The proposed operation would run for 22 years, including construction, production and closure activities.
Kinross designed the mine to process roughly 35,000 tonnes of ore daily. Furthermore, the company estimates the site contains 6.7 million oz. of gold and 4.7 million recoverable oz. across the project life.
The company expects average grades near 1.29 grams of gold per tonne. Ore would come from sequential open pits at the Marte and Lobo deposits.
Project infrastructure would stretch across approximately 2,312 hectares at elevations reaching 4,200 metres. Meanwhile, trucks would transport ore to a primary crusher and heap leach processing facility nearby.
Kinross plans to source water from existing wells operated by subsidiary Mantos de Oro. In addition, the company intends to connect the operation to a 220-kilovolt transmission line using upgraded regional roads.
Construction could begin in 2027 and continue through 2030 if regulators approve the project. Production is currently targeted for the early 2030s.
Kinross said this year’s activities will focus on engineering work, technical studies and environmental baseline analysis. Additionally, the company aims to extend nearby La Coipa mine operations through future extraction phases.
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Lobo Marte joins a list of projects involved in permitting process
The miner ultimately wants to build a broader long-term gold district strategy in Chile extending beyond 2040. Chile currently contributes about 11 per cent of Kinross’ global equivalent gold production.
President José Antonio Kast described Lobo Marte as one of the country’s most significant planned mining investments for the coming decade. He also announced proposed reforms designed to simplify Chile’s mining patent system.
The legislation would reduce administrative fees and streamline permitting requirements for smaller mining operators. Consequently, Chile hopes to improve investment certainty while attracting additional resource development capital.
Lobo Marte joins a growing list of major projects entering Chile’s permitting process. Those include developments proposed by BHP (ASX: BHP), Freeport-McMoRan (NYSE: FCX) and Albemarle (NYSE: ALB).
The Atacama region currently accounts for 44 per cent of Chile’s exploration spending. Furthermore, industry estimates suggest the region may require roughly 6,000 mining workers annually through 2034.
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