Gold mining contract questioned.

Suriname wants to renegotiate its contract with a Canadian mining company because of soaring gold prices, reports AP (May 5, 2008). Natural Resources Minister Gregory Rusland said prices have risen beyond expectations since the government signed a contract with Rosebel Gold Mines NV in 2005. Suriname

receives 2% royalties on Rosebel's production and payments for the use of a hydroelectric dam that vary according to gold prices. Rosebel spokesman Roy van Aerde said the subsidiary of Toronto-based IAMGold is open to discussions. Gold, now trading at over US$900 an ounce, was around US$400 when Rosebel signed its contract.