Iamgold and Suriname sign new deal on gold mine

Toronto-based miner Iamgold Corp. (TSX: IMG, NYSE: IAG) signed a deal Thursday with the Suriname government to expand its Rosebel gold mine and extend their partnership to develop it until 2042,

Rosebel is one of the miner's biggest operations, it produced 382,000 ounces of gold in 2012 and 385,000 ounces in 2011.

The company said it was confident in the operation, despite falling prices and rising costs.

Suriname, in the northeast of South America, produces gold and bauxite.

The value of the deal was not announced, although previously Iamgold had put forward a seven-year deal that would have cost about $185 million.

Iamgold owns 95% and the government owns 5% of the Rosebel mine.

Suriname is discussing a draft law for a mineral agreement with U.S.-based Newmont Mining Corp. (NYSE: NEW) to develop the Merian gold project in the country.

Image courtesy Iamgold