PARAMARIBO, Suriname — THE Suriname government says the Canadian-owned Iamgold will be adopting new measures to cut operational costs at its Rosebal gold mine to deal with what it claims to be “challenging circumstances”.

A government statement quoted Iamgold’s chief executive officer Steve Letwin, who paid a visit to the country last weekend, as informing President Desi Bouterse of his company’s intention to cut costs by US$100 million.

The statement gave no details as to how that would be achieved, but indicated that government is looking into Iamgold’s application for other areas for mining than Rosebel, where there is soft rock that holds higher grade ore.

“Refining this type of ore will have positive influence on the costs of the company,” the statement said, noting that Bouterse and Letwin also discussed the increase of illegal mining activities that have negatively impacted both the country’s and the company’s income.

“The illegal activities are serious points of concern for the safety and the environment,” the release stated, noting that both parties have expressed their willingness to guarantee continuance of the Rosebel mine, where 2,000 people are employed.

The Rosebel Gold Mine is jointly owned by IAMGOLD (70 per cent) and the Suriname government. The mining concession covers 170 square kilometres.

The company recently completed construction of its US$12 million solar plant -the largest in Suriname- and hailed as an environmentally friendly way for the mines to generate their own power.