Kinross provides update on new Ecuadorian
Mining Law
Toronto, Ontario, January 29, 2009
-- Kinross Gold Corporation (TSX-K; NYSE-KGC) is
pleased to acknowledge that on January 29, 2009 the new Ecuadorian Mining Law was
published in the Ecuadorian government’s official registry and has now taken effect.
Based on Kinross’ understanding, some key provisions of the law include the following, all of
which are consistent with the Company’s expectations:
•
No limits imposed on the number of concessions that can be held
by a concessionaire;
•
Concessions are limited to a term of 25 years but are renewable;
•
A royalty of not less than 5% on sales;
•
Establishes clear timelines for project exploration and
development.
“We believe that the new mining law provides a solid foundation and framework for the
growth of a responsible mining industry in Ecuador,” said President and CEO Tye Burt.
“This is a significant milestone for the country and the industry. However, we recognize that
much work remains to be done in developing the regulations and finalizing terms and
conditions of mining operations,” Mr. Burt said. “As we have in the past, we will work
cooperatively with the government and local communities to advance development of our
Fruta del Norte deposit in a way that benefits all parties.”
Kinross currently holds 35 concessions in Ecuador, including the Fruta del Norte (FDN)
concession block. Shortly before the Mining Law came into effect, four concessions, which
were non-material and peripheral to the FDN concession block, were revoked by the state
under the terms of the April 2008 Mining Mandate. The concessions were revoked because
Environmental Impact Assessments had not been approved prior to the implementation of
the Mining Mandate.
Kinross intends to recommence work on advanced exploration at the FDN project once it
has obtained the required permits to proceed. The company plans a $25 million program on
the FDN deposit to upgrade mineral resources and support a pre-feasibility study.
Metallurgical test work for FDN commenced in April 2008 and is continuing.
About Kinross
Kinross is a Canadian-based gold mining company with mines and projects in the United
States, Brazil, Chile, Ecuador and Russia, and employs approximately 5,500 people
worldwide. Kinross’ strategic focus is to maximize net asset value and cash flow per share
through a four-point plan built on: generating growth from core operations; expanding
capacity for the future; attracting and retaining the best people in the industry; and driving
new opportunities through exploration and acquisition. Kinross maintains listings on the
Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).
