(Ecofin Agency) - Robex Resources has acquired its second gold mine in West Africa, the Kiniero mine in Guinea. The Canadian firm aims to start production at Kiniero by late 2025. Its first mine is the Nampala mine in Mali.

Guinea’s Kiniero gold mine should deliver 1.21 million ounces (34 tonnes) over the next nine years. The forecast comes from a 14 January feasibility study issued by the project’s new owner, Robex Resources.

According to the Canadian company, the mine should deliver 154,000 ounces annually during its first six years of activity, and an average of 139,000 ounces annually, over its entire lifespan. The new forecast is 54% higher than previous estimates, a shift attributable to recent exploration efforts that have expanded the project's resources. Robex said it plans to produce the first gold at Kiniero by the end of 2025. Meanwhile, it is building a processing plant capable of handling 5 million tonnes annually.

“Updating the feasibility study for our Kiniero Gold Project in Guinea is a major milestone in our journey towards project development, as the FS optimizations and updated Mineral Resource Estimate have delivered increased Mineral Reserves and stronger economics for the project. The base case gold price of US$1,800/oz post-tax NPV now stands at US$322 million with an IRR of 36%, which have both improved +89% on the 2023 FS results within a very short period,” explained Robex CEO Matthew Wilcox. 

To unlock Kiniero’s full potential, an initial investment of $243 million is required, up 52% against previous estimates. Part of the funds has already been invested in the mine’s building process. The latter should be done in a few months, as engineering works are about 75% done, and all necessary long-lead items have been procured.

The Guinean government anticipates revenue primarily through dividends from its 15% stake in the mine and a corporate income tax rate of 30%. Additionally, there is a 5.5% mining royalty on all gold sales by Robex, unless modified by a mining convention with the state.

This article was initially published in French by Emiliano Tossou 

Edited in English by Ola Schad Akinocho