Suriname and Iamgold sign deal to expand Rosebel gold mine

June 06, 2013 6:38 PM
PARAMARIBO - Canadian miner Iamgold Corp and Suriname's government signed a deal on Thursday to expand the South American country's Rosebel gold mine and extend a partnership to develop it until 2042.
 
The mine is one of the Toronto-listed company's biggest, producing 385,000 ounces of gold in 2011. No details were made public, but Iamgold had previously proposed a seven-year program that would cost around $185 million.
 
Steve Letwin, the company's chief executive officer, told the ceremony the global gold mining business was facing falling prices and rising operating costs.
 
"Despite the challenges facing Rosebel, I have never been more confident ... due to the strength of our partnership with the government," he said, alongside President Desi Bouterse.
 
A sparsely populated former Dutch colony on the northeast shoulder of South America, Suriname produces gold and bauxite, which dominates the economy, and has a nascent oil industry.
 
On Friday, its National Assembly will continue discussing a draft law for a mineral agreement with U.S.-based Newmont Mining Corp to develop Suriname's Merian Gold Project. 
 
(Reuters)
 

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