Kinross could up gold production by 57 percent

Kinross Gold, Canada and North AmericaÔÇÖs third-largest producer of gold, could increase output by 57 percent over the next five years, if its South American projects come to fruition.  Proposed expansions at the three existing mines combined with the development of three new prospects could add 1.3 million ounces to the Toronto-based companyÔÇÖs annual output, according to a report by Bloomberg. To proceed with all six projects would cost the company around $3 billion. The three mines being considered for expansion are the Maricunga and La Copia mines in Chile, and the Paracatu mine in Brazil. The three new prospects are the Cerro Casale and Lobo-Marte deposits in Chile and the Fruta del Norte prospect in Ecuador. Kinross gained 50 percent control of Cerro Casale as part of its acquisition of Bema Gold Corp. for $3.5 billion in 2007. Toronto-based Barrick Gold Corp., the worldÔÇÖs largest gold producer, owns the remaining 50 percent. Demand for gold is currently outstripping new discoveries. Earlier this month, the precious metal reached its highest price for 18 months, of $1,025 per ounce. In the first half of this year, KinrossÔÇÖs gold-equivalent production, which includes silver, rose 47 percent on a year-on-year basis to 1.09 million ounces. Kinross has already said it is currently considering up to 50 investments in every country where it has operations, including prospects at development stage and active mines. The companyÔÇÖs CEO, Tye Burt, has said he would not rule out a transaction on a scale similar to its takeover of Buma. Kinross currently has operations in the US, Brazil, Chile, Ecuador and Russia, employing around 5,000 people. * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á ┬á┬á┬á┬á*