Suriname gold mine officially commences commercial production
This week the Merian gold mine in Suriname, South America, was opened and is expected to significantly boost the economically struggling country.
Suriname President Desi Bouterse and Newmont Mining Corp Chief Executive Gary Goldberg officially inaugurated the gold mine on Thursday 17 November, citing it as a “significant contribution” to the economy.
"This significant investment of a multinational of a magnitude and capacity like Newmont, proves that our small economy is able in bearing huge foreign direct investments which are indispensable to meet with the challenges and requirements of our economy in these days,” Bouterse said.
The Merian gold mine
Located 66 kilometres south of Moeng in Suriname, the Merian gold mine is an open-pit mine.
It has an estimated gold production of around 400,000 – 500,000 ounces of gold per year over the first five years of its mine life.
That mine life, is for 11-13 years.
Newmont began operating the project in 2004 and began construction in August 2014.
The mine consists of two open pits, a gold ore processing plant, camp accommodations, a power generating facility and related site infrastructure.
Newmont signed “The Cooperation Agreement” in June 2016, an agreement which will see Newmont promote preferential employment for the Pamakan Community as well as procurement opportunities for local businesses.
There is also the Community Development Fund, which is a fund dedicated to the sustainable development of the local Pamakan Community.
During construction, around 2,900 jobs were created and with commercial production now beginning there are around 1,100 people in employment – 20 percent of whom are Pamakans.
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Zimbabwe targets £8.8bn mining industry by 2023
Zimbabwe’s government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas under the Ministry of Mines and Mining Development as part of wider measures to achieve a £8.8 billion mining industry by 2023, according to a senior government minister.
Information Minister Monica Mutsvangwa said other plans include stopping the issuance of special grants in the reserved areas under the Ministry of Mines and Mining Development until the exploration and evaluation is complete and a robust value addition program for diamonds is implemented.
Mutsvangwa was speaking at a post-cabinet media briefing on December 15.
She adds that the issuance and renewal of special grants for energy should also be based on the financial and technical capacity to value add all types of coal, as well as for ideal exploration of Coal Bed Methane.
For renewal of special grants, consideration should take into account the period the Special Grant has been held as well as plans with milestones for value addition of the special grant, Mutsvangwa says. She adds that the Zimbabwean government expects gold to drive the mining sector in order to achieve the ambitious target, with the precious metal expected to contribute approximately £2.96 billion to the overall target.
Mining is one of Zimbabwe’s major contributors to its economy, alongside agriculture, which is the mainstay. The mining sector accounted for more than 60 percent of the country’s foreign currency receipts in 2019, and contributed around 16 percent to national Gross Domestic Product, the Chamber of Mines says.
The country’s mining industry is focused on a diverse range of small to medium mining operations. The most important minerals produced in Zimbabwe include gold, asbestos, chromite, coal and base metals.
Zimbabwe expects its economy to expand by 7.4 percent in 2021 from a projected contraction of 4.5 percent this year, due to the effects of drought and the COVID-19 global pandemic.
When presenting the 2021 National Budget in November this year, Finance and Economic Development Minister, Professor Mthuli Ncube, said that the mining sector is projected to rebound by 11 percent next year after surviving a COVID-19 induced shock that saw the sector contract by 4.7 percent in 2020. In September, mining bans in national parks were introduced, according to news agencies.
He added that the National Budget would allocate £1 billion towards the operations of the ministry for planning, promotion and exploration, data capturing, and automation, among other key mining processes.
Other factors necessary for the achievement of the £8.8 billion target include a stable macroeconomic environment, policy consistency, and availability of long-term capital to fund mining projects along the entire mineral value chain, the minister said.
Stopping "illicit financial flows" from gold smuggling is another key issue to address, according to media reports.