Canadian company to develop solar plant in Suriname

Published: Thursday | December 5, 2013 Comments 0

Canadian gold miner, IAMGOLD, says it will develop and operate a solar plant in Suriname at a cost of US$14 million.

"The project will help meet the electricity requirements of the mine in district Brokopondo, and at the same time free up power for use by other customers in Suriname," the company said.

The five-megawatt plant is expected to be commissioned during the third quarter of 2014.

"IAMGOLD is fulfilling a prior commitment to the Government of Suriname through this green project," said the company, which has been operating the Gros Rosebel gold mine since 2006.

In April this year, the company signed a new agreement with the Suriname government, which reduced IAMGOLD's 90 per cent stake to 70 per cent and effectively made government a partner in Rosebel Gold Mines NV, the operating company for the mine.

Rosebel produced nearly 385,000 ounces of gold in 2011.

This year, IAMGOLD reported a big drop in third-quarter revenue and earnings, due to lower prices for gold and higher operating costs.

Net earnings plunged 68 per cent to US$25.3 million or seven cents per share. Revenues fell 13 per cent to US$293.5 million from US$336.2 million, as lower gold prices were only partially offset by a higher volume of sales.

The release said the solar project is expected to reduce energy costs, which should provide a boost to the company's margins.

"During the course of mining for gold, the transition process from soft rock to harder rock deposits requires a high amount of power to crush and grind the ore," the company said.

- CMC


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