Kinross Gold (TSX: K) has officially launched the environmental permitting process for its $1.5 billion Lobo Marte gold project in Chile’s Atacama region, marking a significant step toward establishing a major gold mining district in the country’s north. The application, submitted through its subsidiary Mantos de Oro Mining Company to Chile’s Environmental Impact Assessment System, targets the production of gold dore with a processing capacity of 35,000 tonnes per day.
Spanning 2,312 hectares across the communes of Copiapó and Tierra Amarilla at an altitude of 4,200 meters, Lobo Marte involves sequential open-pit mining of the Marte and Lobo pits. The project boasts an average gold grade of 1.29 grams per ton, with a feasibility study estimating recoverable production of 4.7 million ounces over a 16-year operating life, at an all-in sustaining cost of $680 per ounce. Total material extraction is projected at 161 million tonnes over 14 years, with a full project timeline of 22 years, including 3.5 years of construction and 2 years of closure.
Infrastructure plans are extensive. A static leach pad with six growth phases and a drip irrigation system will be installed, supported by water from existing wells operated by Mantos de Oro at a maximum flow of 76 liters per second. Energy will come via a 220 kV transmission line, and access will be upgraded through Route C-341 alongside a new road section to the mine site.
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Construction is slated for 2027 to 2030, with operations potentially starting early next decade, following the wind-down of Kinross’s nearby La Coipa mine, located 50 kilometers away. La Coipa produced 231,770 ounces of gold in 2025, and Kinross is also seeking environmental approval to extend its life through new extraction phases, targeting operations from 2028 to 2034. The broader vision is to operate beyond 2040 by leveraging Lobo Marte’s output, consolidating Chile as a key hub that accounts for 11% of Kinross’s global gold equivalent production of around 2 million ounces annually.
Chile’s Mining Minister Daniel Mas welcomed the move, emphasizing the need for a regulatory framework that balances environmental protection with investment. Lobo Marte joins a wave of recent mining applications in Chile totaling $15.7 billion, including copper projects from BHP and Freeport McMoRan, and a lithium initiative by Albemarle.
The project’s environmental and community considerations, embedded in the 2021 feasibility study, will now face scrutiny under the SEIA process. Kinross has prioritized baseline studies and engineering work in 2026 to accelerate progress.
Gold’s enduring appeal as a safe-haven asset amid geopolitical tensions and inflationary pressures adds weight to Kinross’s long-term strategy in Chile. The company’s projected production start in the early 2030s positions it to capitalize on sustained demand, with Lobo Marte’s estimated 4.7 million ounces of recoverable gold as a cornerstone of that growth.
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