Alcoa teams with Newmont

Two majors, Alcoa (AA-N) and Newmont Mining (NEM-N), are engaged in grassroots exploration for gold in Suriname.

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 about 5,350 tonnes of alumina per day at its hydro-powered Paranam facility, a 55-45 joint venture between Suralco and an affiliate of BHP Billiton (BHP-N).

Suralco found gold anomalies while exploring for bauxite on its Witlage and Merian concessions (total: 650 sq. km), whereupon it decided to engage Newmont, the world’s biggest gold producer.

Newmont will spend up to six years exploring for gold on the concessions, then, if warranted, carry out a feasibility study. Tha major would then have an equity stake in the project proportional to its past expenditures.

“This is a long-term project with minimal financial impact in the near term,” says John Sibly, president of global manufacturing for Alcoa World Alumina & Chemicals.