Compliance with these laws and regulations requires

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Unformatted text preview: tes. Such permits relate to many aspects of mining operations, including maintenance of air, water and soil quality standards. In most jurisdictions, the requisite permits cannot be obtained prior to completion of an environmental impact statement and, in some cases, public consultation. Further, Kinross may be required to submit for government approval a reclamation plan, to post financial assurance for the reclamation costs of the mine site, and to pay for the reclamation of the mine site upon the completion of mining activities. Kinross mitigates this risk by performing certain reclamation activities concurrent with production. Mining, like many other extractive natural resource industries, is subject to potential risks and liabilities concerning the environmental effects associated with mineral exploration and production. Environmental liability may result from mining activities conducted by others prior to Kinross' ownership of a property. To the extent Kinross is subject to uninsured environmental liabilities, the payment of such liabilities would reduce funds otherwise available for business activities and could have a material adverse effect on Kinross. Should Kinross be unable to fully fund the cost of remedying an environmental problem, Kinross might be required to suspend operations or enter into interim compliance measures pending completion of the required remedy, which could have a material adverse effect. Kinross mitigates the likelihood and potential severity of these environmental risks it encounters in its day-to-day operations through the application of high operating standards. Paracatu – New Municipal Law Requiring Lined Tailings Facilities A new law has been passed by the municipality of Paracatu that requires all tailings facilities at Kinross Paracatu mine to have an impermeable liner. Currently none of the mine’s tailings facilities have such a liner, as none has been required by applicable law or the Company’s permits. Kinross believes this new law is without merit, is outside of the authority of the municipality and is inconsistent with the permits gran...
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This document was uploaded on 03/30/2014.

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