It’s not very often that two majors get together for a grassroots exploration campaign, but that’s exactly what Alcoa (AA-N) and Newmont Mining (NEM-N) are doing in Suriname, with a particular focus on gold.
The U.S. aluminum giant has been present in the country, a former Dutch colony in northern South America, since 1916 and now operates there through its subsidiary Suriname Aluminum Co. (Suralco).
Suralco produces approximately 5,350 tonnes of alumina per day at its hydro-powered Paranam facility, a joint venture between Suralco (55%) and a BHP Billiton affiliate (45%).
While Suralco was carrying out bauxite exploration programs on its Witlage and Merian concessions, which total 65,000 ha and can be expanded to 100,000 ha, the company found some gold anomalies and decided to bring in Newmont, the world’s biggest gold producer.
The new joint venture between the two calls for Newmont to spend up to six years exploring for gold on the concessions, after which time the gold major will complete a feasibility study, if warranted. Newmont would then have an equity stake in the project related to its past expenditures.
"This is a very long term project with minimal financial impact in the near term,” says John Sibly, president of global manufacturing for Alcoa World Alumina and Chemicals.
Be the first to comment on "Alcoa and Newmont team up in Suriname"