Newmont Mining announced plans to invest as much as $1 billion to build a mine in Suriname.
Plans to develop the Merian gold mine in the South American nation have received strong local support, the gold mining company claimed.
It expects the new mine in begin production in late 2016, pending government clearances. Merian contains gold reserves of 4.2 million ounces and is expected to yield an average of 300,000 to 400,000 gold ounces annually over a mine life of 11 years.
The approval marks the first for a gold project of its size since gold’s 28 percent plunge last year spurred producers to rein in spending, delay expansions and sell less profitable assets to shore up their balance sheets reports Bloomberg.
The government of Suriname has the option to earn a 25 percent fully-funded equity ownership stake, including all project capital and operating expenses and an initial earn-in contribution. Newmont expects to fund its share of development through available cash balances and project cash flows.