Newmont Suriname delivers strong performance to generate shared value in first full year of operation
On 1 October 2017, Newmont Suriname celebrated its first full year of safe, efficient and responsible production at the Merian gold mine in the mid-eastern part of Suriname.
During this period, Newmont Suriname reported generating US$34 million in royalties to the government, paid direct wages of US$12 million, and purchased US$2.2 million in goods and services from local vendors and suppliers. Of the nearly 1,300 Newmont Suriname employees, 90 percent are Surinamese nationals, among whom 228 are Pamakans. Staatsolie manages the government of Suriname’s 25 percent equity interest in Merian as part of the Joint Venture arrangement with Newmont.
“Thanks to the skill and hard work of our employees and business partners, we are creating value and improving lives through sustainable and responsible mining for all of our stakeholders.” said Adriaan van Kersen, Newmont Suriname’s Managing Director. “We look forward to building on our partnership with the government and people of Suriname to generate more opportunities for safe, profitable and responsible economic and social development.”
Newmont Suriname continues to explore opportunities to safely, efficiently and responsibly grow its business in Suriname. This includes Phase 2 construction at Merian which will continue through the third quarter of 2018. This new investment includes engineering, procurement and construction for a primary crusher to allow the processing of fresh rock, the expansion of the power plant, and the tailings storage facility expansion.
To increase reserves and mine life, Newmont Suriname’s exploration team continues surveying and drilling in prospective areas. In addition, the Sabajo Environmental Social Impact Assessment (ESIA) is in its final phase of completion and the company expects to submit the assessment to the government next year.
The Cooperation Agreement Newmont Suriname signed with the Pamaka Community in June 2016 provides a mutually-agreed framework based on respect, shared value and open communication. The agreement also provides for preferential employment and procurement of Pamakan services, along with other objectives.
In August 2016, Newmont created the Pamaka Community Development Foundation (CDF) . to implement development projects in the Pamaka area. In support of the Foundation, Newmont Suriname will voluntarily contribute US$1 per gold ounce sold. The Board of Directors of the CDF consists of two representatives of the Pamaka community, two Newmont representatives and two from the government.
Newmont Suriname also has built partnerships with and provided funding support of US$350,000 to the Anton de Kom University of Suriname, the National Institute for Environment and Development in Suriname (NIMOS), the Commission Planning Gold Sector, the Public Health Office and the National Coordination Center for Disaster Management.
“Newmont Suriname will continue to explore ways to promote sustainable development in our host communities and to create additional value through safe and responsible mining,” said van Kersen.
The Merian gold mine is located approximately 60 km south of Moengo, Suriname and is predominantly in the Pamakan area about 15 km west of the Marowijne River.
Newmont Suriname, LLC, (previously known as Suriname Gold Company, LLC) is a fully-owned subsidiary of Newmont Mining Corporation, which operates the mine on behalf of Suriname Gold Project CV, a Suriname limited partnership (the “CV”). Newmont Suriname is the managing partner, owning a 75 percent interest in the limited partnership, and Staatsolie Maatschappij Suriname N.V., Suriname’s State-owned oil company owns the remaining 25 percent interest. Construction of Merian commenced in August 2014, and commercial production was achieved on October 1, 2016. Merian’s focus is on delivering safe, efficient and responsible gold production while generating sustainable value and opportunity for employees, local communities, the local and national governments, and
the CV’s owners.