The Kiniero mine in Guinea is currently under construction to optimize its production after being neglected for several years. To complete the construction of this project, Robex Resources, a Canadian company, has obtained a USD 130 million loan. This mine has a gold production capacity of 34,000 tonnes over a nine-year period.
Stimulating Economic Growth in the Guinean Mining Sector
By the end of 2025 at the latest, the Kiniero gold mine in Guinea will begin producing a significant amount of gold. This production will undoubtedly boost economic growth in the mining sector and increase Guinea’s revenues, particularly with regard to the expansion of the domestic gold sector. This is due to the high global price of gold.
To achieve this, the completion of the gold mine is essential. An investment of 185 million USD is required to complete the works. To this end, Robex Resources has received a 130 million USD loan from Sprott Resource Lending. The total completion of the construction of this gold mine is estimated at between 210 and 225 million USD. Therefore, an estimated 35 to 40 million USD is earmarked for the initial activities related to gold production.
Robex Resources Assets
The Canadian company Robex Resources owns several gold mines, including the Nampala gold mine in Mali, in addition to the Kiniero gold mine in Guinea. Furthermore, the latter’s production exceeds that of Mali.
Kiniero has a production capacity of 139,000 ounces per year over nine years, more than three times Nampala’s production (46,715 ounces in 2024 and at least 46,000 ounces planned for 2025). However, this increase in production will contribute to Robex Resources meeting its commitments to its investors. Indeed, the price of gold has risen, exceeding the USD 3,000 per ounce mark.
The main challenges facing the Kiniero gold mine
The main challenges facing the Kiniero gold mine include several technical, financial, environmental, and social aspects.
Technical and Operational Challenges
Optimizing the mine plan: Optimizing the mine plan is crucial to ensure efficient and profitable operations. This includes reserve management, planning mining operations, and adapting to changing geological conditions.
Geological and Mining Challenges: Complex geological conditions, such as the presence of oxide zones and fresh rock, require tailored mining techniques to minimize costs and maximize production.
Dependence on Equipment and Processes: Operational efficiency is highly dependent on the performance of equipment and processing processes, which can be affected by breakdowns or delays in obtaining spare parts.
Financial Challenges
Financing and Risks: The ability to secure and maintain adequate financing is essential. Fluctuations in the gold price and unforeseen costs can impact project profitability.
Cost Management: Actual costs can exceed estimates, requiring rigorous expenditure management to avoid cost overruns.
Environmental and Social Challenges
Environmental Impact: Reducing the environmental footprint is a major challenge, particularly with regard to the use of sustainable energy and mining waste management.
Relations with Local Communities: The involvement of local communities in project development is crucial to avoid conflicts and ensure sustainable development.
Transparency and Governance: Allegations of irregularities in the mining concession allocation process highlight the need for increased transparency and good governance in the mining sector.
Regulatory Challenges
Government Regulations and Approvals: Delays in obtaining necessary permits or regulatory changes can affect the project’s timeline and profitability.
