Kinross Gold (TSX: K)(NYSE: KGC) plans to invest $3 billion to develop the Lobo Marte project in Chile’s Atacama region, advancing one of the country’s largest proposed mining projects as gold prices remain near record highs.
The Canadian miner’s initial permitting phase for early operations and site development after the company submitted the project’s environmental impact assessment to Chilean regulators last month.
Lobo Marte is designed as a 22-year mine including construction, operations and closure, with ore processing capacity of about 35,000 tonnes per day. Kinross estimates the mine will produce 6.7 million oz. contained gold and 4.7 million recoverable oz. over its life at an average grade of 1.29 grams gold per tonne.
The project, is one of the most important mining investments planned for the Atacama Region and the country for the next decade.
Lobo Marte highlights Chile’s renewed push to attract large-scale mining investment as global producers race to secure future supply of gold, copper and lithium. The project joins a growing pipeline of major projects entering Chile’s permitting system, including developments proposed by BHP (ASX: BHP), Freeport McMoRan (NYSE: FCX) and Albemarle (NYSE: ALB).
The Atacama region alone accounts for 44% of Chile’s exploration budget and is expected to require about 6,000 mining jobs annually through 2034, according to Chilean industry data.
Gold hub
Kinross plans to develop Lobo Marte at roughly 4,200 metres elevation across 2,312 hectares using sequential open pits at Marte and Lobo. Ore would move by truck to a primary crusher and heap leach operation, while water would come from existing wells operated by subsidiary Mantos de Oro. Power would be supplied through a 220-kilovolt transmission line connected by upgraded regional roads.
Construction is expected between 2027 and 2030, with production targeted early next decade. Kinross said this year’s work will focus on engineering, technical studies and environmental baseline analysis.
The company also aims to extend operations at its nearby La Coipa mine through additional extraction phases that could keep the complex operating into the next decade. Kinross ultimately plans to integrate Lobo Marte into a broader Chilean gold district strategy extending beyond 2040. Chile currently accounts for about 11% of the company’s global equivalent gold production.
President Kast separately announced legislation aimed at simplifying Chile’s mining patent system, including reduced fees and streamlined permitting rules for smaller operators. The proposed reforms are intended to reduce administrative burdens and improve investment certainty across the sector.
