“The challenge for Rosebel has been the transition of its existing operations to process harder rock at the current power rate of 20 cents/kWh,” said Iamgold executive VP and COO Gord Stothart.

“There have been two important developments that allow Iamgold the potential to access more soft rock and better power rates. The first development, announced on April 15, established a new joint-venture growth vehicle targeting softer ore at 11 cents/kWh in areas surrounding the current mine operation. And now, we have concluded an agreement to reduce existing power rates, which will allow us to potentially reduce our costs by up to $50/oz and the government of Suriname and our shareholders to benefit from much better operating margins and a longer mine life,” he said.

Iamgold President and CEO Steve Letwin added, “These new agreements will be incorporated into the feasibility assessments of several expansion scenarios for presentation to the company’s board at the end of the third quarter and will lead to an announcement detailing the future plans for Rosebel.”

The Rosebel mine is owned 95% by Iamgold and 5% by the Republic of Suriname. The mine produced 171,000 oz of gold at total cash costs of $745/oz and all-in sustaining costs of $1,100/oz during the first half of 2013. Full-year 2013 production is forecast to fall in the range of 365,000 to 385,000 oz.