Kinross Mining South America is buying assets, prevent Venezuela
Tuesday December 1, 2009 14:26 CT

Kinross Gold could buy assets in South America and North America, Russia and
Ghana, but will keep out of what it considers high-risk countries such as
Venezuela and China, currently the largest global gold producer, said Tuesday
the chief executive of mining, Tye Burt.
"There are few countries not to go," Burt said at an investment conference in
New York.

"Venezuela, China, Indonesia, PNG (Papua New Guinea) are countries where we see
too much political risk," he added.

In exchange, Kinross (K. TO: Quote), headquartered in Toronto, will continue to
build the expansion of its operations across America and around its Kupol mine
in eastern Russia.

Speaking during the day when the price of gold hit $ 1,200 an ounce for the
first time, Burt said the drop in global gold production and the weakening
dollar were preparing the ground for the "perfect storm" in the price gold.

"Producers are going to have trouble finding new acquisitions, new ounces and
move into new geographies," he said.

Burt said that gold production peaked in 2001 and said it has been falling ever
since.

The gold producers, meanwhile, have been claiming that the fall in production is
one reason to be optimistic about prices.

Kinross production increased steadily in recent years, but earlier this year was
forced to cut its production forecasts for 2009, and now expects 2.2 million
gold equivalent ounces, partly due to problems the start of its expanded
Paracatu mine in Brazil.

Burt said the mine, which was expected to be in full production now, should
produce at a reduced rate of about 420,000 ounces next year.
(By Cameron French; edited by Monica Vargas in Spanish)

http://mx.reuters.com/article/topNews/idMXN0151146020091201?sp=true