PARAMARIBO--Surgold, a subsidiary of US mining multinational Newmont Mining Corporation, commenced commercial production at its Merian gold mine in district Marowijne on October 1.

 

After the Rosebel gold mine operated by Canadian gold miner Iamgold, the Merian mine is Suriname’s second industrial gold mine.

 

“We took an optimised approach to project development and benefitted from being one of the only gold producers investing in growth during the lower price cycle,” said Gary Goldberg, president and chief executive officer (CEO).

 

“Our team built Merian safely, on schedule and significantly below budget – and delivered our strategy to strengthen the portfolio by adding more than a decade of profitable production and creating a foothold in a prospective new gold district. This accomplishment is also the result of strong partnerships with the Government and people of Suriname.”

 

According to Newmont, stockpiled ore so far represents nearly 160,000 contained ounces of gold. Merian contains gold reserves of 5.1 million ounces and annual production is expected to average between 400,000 and 500,000 ounces at competitive cost in the first five full years of production. The mine has a predicted life span of between 11 and 13 years.

 

Government participates with a 25 per cent equity ownership stake in Merian; Suriname’s participation is managed through state oil company Staatsolie.

 

“I feel like a father watching his child graduate from college,” said Staaatsolie’s CEO Rudolf Elias. He noted that since the mine construction was completed at less than the initial cost predicted, Staatsolie is paying less for its 25 per cent stake.

 

Merian’s current workforce includes just over 1,100 employees, 20 per cent of whom are local residents, and 200 contractors. The company said that it has taken a proactive approach to minimising environmental impact and engaged experts to inform its biodiversity offset programmes. Newmont also signed an agreement with the local community for local hiring and procurement targets, as well as a community development fund.