Monday, 28th April 2008 (731 views)

The government of South American country Suriname is reportedly looking to renegotiate its royalties agreement with Canadian company Rosebel Gold Mines after gold prices rose "beyond expectations", according to reports.

Financial news site Forbes says the country's natural resources minister Gregory Rusland will seek to redraft the agreement because of the price of gold has more than doubled since the deal was originally signed in 2005.

Roy van Aerde, a spokesman for the Toronto-based mining company, said it was "open to discussions", according to the site.

Under the existing arrangements, Suriname receives a mining "royalty" equal to two per cent of Rosebel's output in the country. In also receives marker-linked payments for the use of a hydro-electric dam.

The deal centres of the Rosebel mine, which is 95 per cent owned by Rosebel Gold Mines with the remaining five per cent retained by the Surinamese government.

The project, which is located around 100 kilometres south of the country's capital Paramaribo, produced over 301,000 ounces of gold in 2006.

 

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