Kinross to Shutter Russian Gold Mine After Ukraine Invasion
Miners Working on State Land Can Submit Production Royalties Online
net income as calculated through the mining license tax. From that 3 percent, miners can deduct the rent they pay to the state for their claim/lease that produced the mineral. Production royalties are due May 1 every year. “Because the state calculates production royalties from Mining License Tax, miners sometime get confused and do not realize they need to do both,” Aleria Knudson, Production Royalty Program Geologist with the Division of Mining, Land and Water’s Mineral Property Management section, said. “By offering filing in the same location, we are hoping to eliminate that confusion.” The new system will allow miners to file production royalty returns immediately after they calculate and file their Mining License Tax. It will autofill into the Production Royalty Return the repetitive information miners must enter for their mining license tax. It will also provide necessary security to protect sensitive tax information involved in the calculation of production royalties and allow for production royalty payments online. For miners who prefer submitting their production royalty returns using the traditional system, paper forms will still be accepted by the Fairbanks and Anchorage DNR mining offices.
In its production guidance released earlier this year, Kinross anticipated Kupol to produce 350,000 oz of gold during 2022, accounting for 13 percent of the 2.65 million ounces expected from all the company’s operations this year. Kinross says the winding down of Kupol and its other activities in Russia are focused on the safety and well- being of its more than 2,000 employees, while also recognizing its obligations to manage and mitigate the Kupol’s environmental impact moving forward. Expressing sympathy and support for the Ukrainian people suffering due to the Russian invasion, Kinross is donating $1 million to the Canadian Red Cross Ukraine Humanitarian Crisis Appeal to assist those people most in need.
The Alaska Department of Natural Resources has established a one-stop, online submittal system to allow Alaska miners working on state land to submit their annual production royalties at the same time they file their mining license taxes. Alaska miners can submit their production royalties through the Department of Revenue’s online submittal system, Revenue Online, https://onlinetax.alaska.gov/ ATP/WebDoc/_/. Revenue Online is already where miners go to get their mining license, and file and pay their mining license tax. “By allowing the mining community to submit their production royalty returns through the same system as they submit their mining license tax we hope to simplify and streamline the process,” DNR Commissioner Corri Feige said. All miners working on state land must report and if required, pay annual production royalties regardless of mine size or income. Production royalties are a royalty paid to the state in exchange for and to preserve the right to extract and possess minerals such as gold, silver, copper, quartz and jade to name some of the minerals mined from state land. In Alaska, production royalties are 3 percent of a miner’s
By Shane Lasley North of 60 Mining News
Deeply concerned about the loss of life and destruction being caused by Russia’s invasion of Ukraine, Kinross Gold Corp. has decided to suspend all activities at its gold projects in the Russian Far East. Kinross’ Kupol Mine in the Chukotka region of eastern Russia produced 481,108 ounces of gold-equivalent, which includes the value of both the gold and silver produced, during 2021. This one mine accounted for roughly 23 percent of the gold-equivalent oz produced by the company last year. Despite being the second largest and lowest cost gold mine in its portfolio, Kinross has decided to wind down operations at Kupol and Udinsk, where the company had been working toward developing another gold mine in Russia’s Far East. While suspending operation at Kupol will significantly impact 2022 gold production, gold output at this mine was already slowing and cost increasing as the grades of ore decreased and the veins are getting narrower.
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