FROM KITCO site
Gold miner Kinross likes doing business in Russia
10/2/2001 1:04:00 PM
DENVER, Oct 2 (Reuters) - Kinross Gold Corp. (K) has found Russia, with its highly educated work force, to be one of the best
environments to mine for gold, Chairman Bob Buchan said on Tuesday.
Canada's Kinross acquired the Kubaka mine in far eastern Russia in 1998 with the acquisition of the former Amax Gold Co. Kubaka is one
of the world's lowest cost mines to operate, producing more than 106,000 ounces of gold in the first half of the year for Kinross's 55 percent
stake at a cash cost of $148 an ounce.
The mine has the most educated work force of any mining operation in the world, Kinross Chairman Bob Buchan told Reuters at the Denver
Gold Group's Mining Investment Forum. Sixty percent of Kubaka's work force are university graduates. About 95 percent are high school
graduates.
"Initially, that was a problem, because everyone had an opinion. But once they bought into the concept of productivity, and they recognized,
'if I work harder, I get paid more' ... the productivity improvements we saw exceeded our expectations,'' Buchan said. "The plant is running
now at 20 percent to 30 percent over capacity without any lost-time accidents.
When Russia's financial crisis hit and the government was not able to buy the mine's refined output, Kinross found Russia unwilling to let the
company export partially refined gold, as the original contract called for. But the contract was revised in three weeks, resolving the problem,
he said.
Buchan said there is not much more gold in the Kubaka deposit beyond the reserve, but Kinross hopes to do further exploration at another
promising deposit, Birkachan, about 22 miles (35 km) away.
REUTERS
Rtr 13:04 10-02-01
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