Alcoa, Newmont announce gold exploration JV

Pittsburgh-based aluminum giant Alcoa (NYSE: AA) and US gold miner Newmont (NYSE: NEM) signed a joint venture agreement on Monday (August 9) which will see Newmont explore for gold in Suriname. Alcoa's subsidiary in Suriname, Suralco, recently identified some gold anomalies in the course of exploring for bauxite at its concessions. Suralco holds the Witlage and Merian exploration concessions in the country totalingl 65,000 ha, with the possibility of expansion to 100,000 ha. The joint venture agreement calls for Newmont to spend up to six years exploring for gold in the concessions. At the end of the exploration period, Newmont will complete a feasibility study which would describe the reserves of gold and the nature and extent of mine facilities needed to tap it. In exchange for their investment, exploratory work and operational management of the process, Newmont will receive an equity interest in any potential gold mining operation. Alcoa's presence in Suriname extends back to 1916. The business originally focused on mining bauxite. In 1958, Suralco signed an agreement with the Suriname government to develop the country's hydropower and bring the aluminum industry to the country. Today, Suralco produces approximately 5,350t/d of alumina at it Paranam facilities. Suralco and an affiliate of BHP Billiton own 55% and 45% respectively of the plant.