Owner of all the gold that is produced in Brazil, the Kinross mining company provides almost 6.000 jobs in Paracatu, Northwest of Minas Gerais
The mining company, owner of all gold production, belongs to Kinross Gold Corporation, which is headquartered in Toronto, Canada. The president of Kinross in Brazil, Gilberto Azevedo, comments that the expected gold production for this year, 2022, is 570 ounces, which is equivalent to 18 tons of gold at the mine in Paracatu – Minas Gerais.
Kinross Group
The Kinross Group was created in 1993 and, since that year, has developed through mergers and acquisitions of other companies. The group is headquartered in Toronto, Canada – where Brazil will present business opportunities in the country's mining sector – and is traded on the New York and Toronto stock exchanges.
Kinross manages around nine mines in seven different countries, including Brazil. Nationally, in Paracatu specifically, the company produces around 16 to 18 tons of gold annually and is one of the most important mines in the group. In Minas Gerais alone, the company generates around 6 thousand empregos.
A vocation for mining was one of the reasons for setting up the mine in Paracatu (Minas Gerais)
The potential to be considered a long life and high production mine was one of the reasons for Kinross to adopt the city of Paracatu, in Minas Gerais, as the headquarters of its mining. For Gilberto Azevedo, when it comes to gold production, being able to sustain production above 16 tons for consecutive years is something very important.
Investments in gold production
According to Gilberto, investments in the area of gold production are very high. In the case of the mining company in Paracatu, for example, if there had not been an investment in the expansion of mining companies in Minas Gerais, most likely the mine would have been worn out in 2014.
With the investments made in the mining company, the useful life of the mines was extended beyond the year 2030. Furthermore, there are still many actions for exploration and technological development of the gold mines to extend the useful life of the mines. The expansion of the gold mines required an investment of more than US$ 1 billion.
Importance of gold mines to Kinross
Two aspects are very important for the meaning of the operation of the gold mines in Paracatu for the Kinross group. The first of these is volume: about a quarter of the group is produced here. The second aspect, which is proportional to the first, is the longevity of the operation.
Evolution of Kinross production
Kinross began its gold production in Brazil in 2004, and before the mines expanded, its production was in the order of 170 ounces. Currently, mine production is 550 ounces. Over the last few years, Kinross has invested heavily in the continuous improvement of mines, always seeking greater process efficiency.
After the mine expansion, the operation was at a level of 490 to 500 ounces, currently being surpassed by operations of 550 ounces.
For the year 2022, the expectation is to produce around 18 tons of gold, 570 thousand ounces, a number higher than last year, and this through efficiency, gains in efficiency in our operation.
Multi-year investment plan at Kinross in Minas Gerais
Investments made in Kinross were in the order of US$ 2 billion. The group's annual investment is around US$ 120 million, which is around R$ 600 million at today's exchange rate.
It is necessary to maintain this order of investments to have the sustainability of the business and gains in terms of continuous improvement and efficiency.
