According to EFE, Newmont Mining Corporation will invest $1 billion in the development of Suriname’s Merian gold mine, which the US company expects to produce an average of 300,000 to 400,000 ounces of gold annually over 11 years.
“Suriname’s favorable geologic conditions and stable investment climate provide a unique opportunity to build and operate a profitable new mine that will create shared value for the people and government of Suriname, as well as our employees and shareholders,” Omar Jabara, Newmont’s chief of corporate communications, told EFE on Monday (September 22).
COMMENT: The mine is to be operated by the Newmont subsidiary Surgold.
Production costs are expected to run between $750 and $850 per ounce for the first five years of operation.
The Merian mining site covers approximately 5,000 hectares (12,300 acres) and contains gold reserves of 4.2 million ounces.
During the construction phase, the company expects to employ 2,500 people.
“With the Merian project, we also have an opportunity to possibly expand our operations in the region to potentially establish a new gold mining district,” Jabara said.
In June 2013, Suriname’s government signed an agreement authorizing Newmont to extract gold for 11 years. The accord gives the government the option to earn a 25% equity interest in the Merian project.