June 19, 2008

Discussions Start Over New Gold Mine in Surinam

Text of report by Caribbean Media Corporation news agency website

PARAMARIBO, Surinam, CMC - Suriname officials have started talks with the United States-based Newmont Mining Corporation and Alcoa Inc. regarding the establishment of a second large-scale industrial gold mine in the country.

Surgold, which is a subsidiary of joint-venture partners Newmont and Alcoa, has over the past four years been conducting exploration activities in the Nassau Mountains 120 kilometres, south of the capital Paramaribo.

Company officials said a feasibility study will be completed shortly, but preliminary results indicate that reasonable amounts of gold have been found to justify the construction of the mine.

Natural Resources Minister Gregory Rusland said that sufficient gold had been discovered to start industrial production.

Observers say Surgold is likely to face difficulty in obtaining a licence since the government is under tremendous pressure to ink a better deal with Canadian-based Cambior which is also seeking to construct a gold mine in the Brokopondo district.

But Rusland said he was optimistic that an agreement could be reached before year end.

Originally published by Caribbean Media Corporation news agency website, Bridgetown, in English 1630 18 Jun 08.

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