Tasiast Gold… Kinross Profits Shine While Mauritania’s Losses Accumulate

Mohamed Abdarahmane Ould Abdallah
Journalist and writer, Nouakchott

Despite the official narrative promoting Mauritania’s “gains” from the exploitation of the Tasiast gold mine, the figures disclosed in company reports and official statements reveal a stark imbalance in the sharing of wealth between the Mauritanian state and the Canadian mining company Kinross Gold Corporation, the operator of the Tasiast mine. While the company reaps more than one billion US dollars annually from the value of gold production, what actually enters the state treasury does not exceed about 60 million dollars per year, after deducting what Mauritania returns to the company in the form of tax exemptions and financial settlements.
Figures That Expose the Imbalance
According to the published data:
The state’s gross share from royalties and taxes reaches around 100 million USD annually at best.
Exemptions and settlements returned by Mauritania to the company are estimated at about 40 million USD per year (tax refunds, fuel exemptions, and financial settlements).
The real net benefit for Mauritania does not exceed 60 million USD annually.

● In Comparison
The annual value of the company’s gold production exceeds 1 billion USD, based on recent production averages and global gold prices.
This means the state receives less than 6% of the approximate annual value, while the lion’s share goes to the company, after accounting for costs determined by the company itself.
A Numerical Summary
Mauritania: ~60 million USD net annually
Kinross: >1 billion USD annually in production value
The gap: Dozens of times in favor of the company
An Unequal Agreement… and Absent Negotiating Sovereignty
These figures reflect a structural imbalance in contractual and negotiating terms. Limited royalties, broad tax exemptions, and tax refund mechanisms render the mine’s contribution to public finances far below the true value of the extracted gold. With every production expansion, the company’s profits grow at a much faster pace than the state’s share, entrenching a model of “exporting raw resources at bargain prices.”
Environmental Risks: A Hidden Cost Paid by Communities
Beyond financial losses, residents around the mine live under the constant threat of pollution and toxins linked to the chemical processing of mining waste, with potential consequences including:
Threats to groundwater in a fragile desert environment.
Degradation of soil, rangelands, and local livelihoods.
Long-term health risks that do not immediately appear in corporate balance sheets.
These environmental costs are not included in the “profit bill,” but are deferred to local communities and future generations.
Where Is the Local Value Added?
Despite talk of “investments” and production expansions, the direct developmental impact remains limited:
Transfer of know-how and technology remains below what is required.
High-quality local employment is less than expected given the scale of the project.
The absence of a local value chain (manufacturing and supporting services) keeps most of the value outside the country.
Urgent Recommendations
Renegotiate the agreement to raise royalties and link them to global gold prices in a fair manner.
Reduce tax exemptions and subject them to parliamentary transparency and regular accountability.
Establish independent environmental oversight and publish public environmental impact reports.
Create a sovereign gold fund to allocate a substantial share of revenues to education, health, and water.
Deepen local content requirements, technology transfer, and skilled employment.
Tasiast gold may shine in corporate reports, but its luster fades when measured against the national interest. The current figures speak clearly: an unfair agreement enriches the company while leaving Mauritania at the margins of its own wealth, as environmental risks pile up over the heads of local communities. Correcting this imbalance is not merely an ethical option—it is a sovereign and developmental necessity that cannot be postponed.
Key Takeaways:
Kinross benefits from a massive share of the value of extracted gold through ownership and project management, as well as tax exemptions and government settlements.
Mauritania receives a very small share of revenues, often dependent on global gold price increases rather than the actual value of production.
This gap points to weaknesses in negotiating terms in favor of the state and a lack of guarantees for equitable wealth distribution.