Kinross Gold Corp said Wednesday that its Dvoinoye gold mine in Russia, where the Canadian miner already operates the Kupol mine, had started commercial production.
Kinross said Dvoinoye, which is located 100 kilometers north of Kupol in the Chukotka region, was expected to produce between 235,000 and 300,000 gold equivalent ounces a year during its first three years of production.
The cost of sales for the combined Russian operations between 2014 and 2016 is forecast to be $545 to $600 per gold equivalent ounce. Ore from Dvoinoye will be processed at the existing Kupol mill, helping to keep costs down.
"Dvoinoye is the fourth mine Kinross has operated in Russia, which remains our lowest-cost jurisdiction and a core operating region for the company," Kinross' chief executive Paul Rollinson said in a statement.