Toronto, Canada — 22 August 2012 – Canadian-based miner Kinross Gold Corporation “’ which is struggling to contain rising costs at its major development project in West Africa “’ says that it has arranged a new three-year term loan of US$1 billion with funds earmarked for general corporate purposes.
Reuters reports that the gold miner also amended its revolving credit facility to US$1.5 billion from a previous US$1.2 billion, extending the term to August 2017 from March 2015.
Kinross is in the process of expanding the Tasiast gold mine in Mauritania. The asset was acquired in its US$7.1 billion takeover of Red Back Mining in 2010, but so far has not lived up to expectations.
Earlier this month, the company ousted long-time chief executive Tye Burt. New CEO Paul Rollinson has promised to focus on enhancing performance while reducing costs.
Miners around the world are struggling to keep major projects on budget as soaring cost inflation outweighs higher metals prices, putting pressure on profits.
Kinross stock has fallen more than 30% this year, and is down more than 55% since September 2010, when the Red Back takeover closed.
Source: Reuters Africa. For more information, click here.