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Kinross says workers at Mauritanian mine on strike

The Tasiast pit gold mine in Mauritania, where Kinross says workers are on strike.

Handout/Kinross Gold Corp.

Kinross Gold Corp. said Thursday that workers at its Tasiast mine in Mauritania have gone on strike.

The gold miner said the strike started after the two sides failed to resolve "certain outstanding issues."

Kinross said it is open to resuming negotiations.

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The Tasiast mine produced about 185,000 gold equivalent ounces in 2012, the company said.

Kinross has been exploring a $2.7-billion (U.S.) expansion at Tasiast, however recently put off deciding what to do with those plans until 2015 following the recent volatility in gold prices.

The expansion would turn the 8,000 tpd mill into a 38,000 tpd mill, producing approximately 830,000 ounces of gold per year over the first five years.

The Tasiast mine has been a headache for Kinross. The miner took a $3.2-billion impairment charge in the fourth quarter of 2012, mostly on its Tasiast mine.

Kinross also booked a $2.49-billion charge related to Tasiast in the fourth quarter of 2011.

Kinross has mines and projects in Brazil, Chile, Ghana, Mauritania, Russia and the United States.

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