Kinross starts permitting for $1.5 billion Lobo-Marte gold project in Chile

The company has officially entered the environmental permitting process for its Lobo-Marte project in Chile’s Atacama region, a development expected to add 4.7 million ounces of gold production over a 16-year mine life.

Kinross Gold has officially begun the environmental permitting process for its $1.5 billion Lobo-Marte gold project in Chile, marking a key step forward for one of the country’s major undeveloped mining assets.

On Wednesday, the company’s Chilean subsidiary, Mantos de Oro Mining Company, submitted the project to Chile’s Environmental Impact Assessment System (SEIA), launching the formal review process required to advance the development in the Atacama region.

The Lobo-Marte project is designed around the sequential mining of two open pits, Marte and Lobo, supporting an estimated 16-year operating life. According to the company, the planned heap leach operation would process approximately 35,000 tonnes of ore per day, positioning the mine as a significant future gold producer in Chile.

Kinross said the leach pad would operate as a static facility and would be expanded in stages, with six growth phases contemplated in the project design. Fresh water for the operation is expected to be supplied through a pipeline connected to existing wells operated by Mantos de Oro, located in an exclusion zone of Nevado Tres Cruces National Park.

Power for the project would be delivered through a 220 kV transmission line, while construction is expected to take approximately 3.5 years. Mining could begin once permitting is secured and operations at the nearby La Coipa mine, located about 50 kilometres away, come to an end.

Lobo-Marte feasibility study outlined strong production profile

According to the feasibility study completed in November 2021, Lobo-Marte is expected to produce approximately 4.7 million ounces of gold over its mine life. The study also estimated an all-in sustaining cost of $680 per ounce, highlighting the project’s potential competitiveness within the global gold mining sector.

Kinross noted that environmental and community considerations were incorporated into the project design during the feasibility stage, making the SEIA submission a critical milestone in evaluating those aspects under Chile’s permitting framework.

The project enters permitting at a time when Chile is seeing renewed activity in large-scale mining investment. Authorities have pointed to a stronger investment climate as several major copper, gold and lithium projects move into environmental review.

Chile’s mining minister Daniel Mas said the country needs a robust institutional framework, clear rules and an efficient permitting system that protects the environment while also allowing investment to move forward.

Kinross joins wave of major mining projects entering Chile’s permitting system

Lobo-Marte is the latest major mining initiative to enter Chile’s environmental assessment system in recent weeks. Other high-profile projects that have recently begun permitting include copper developments led by BHP and Freeport-McMoRan, as well as a lithium project submitted by Albemarle.

The start of the permitting process for Lobo-Marte signals Kinross’ intention to advance one of its most important long-term growth projects in the Americas, while also reinforcing Chile’s role as a key destination for large-scale mining investment.

With gold prices remaining supportive and investor attention focused on future production pipelines, the progress of Lobo-Marte will likely be closely watched by both the mining industry and the Chilean market.