Capital costs are $900 million to $1 billion with the Suriname government having the option to earn a 25% fully funded ownership stake.
 
Newmont said it would fund the project through its cash balance and projected cashflow.
 
The mine is expected to come online in late 2016.
 
The project will produce 400,000-500,000 ounces of gold per annum at all-in sustaining costs of $750-850 per ounce in the first five years.
 
Average annual production over the 11-year life will be 300,000-400,000oz at AISC of $825-960/oz, based on a 4.2 million ounce reserve at 1.22 grams per tonne gold.
 
The company said it established a new gold district with plenty of exploration potential.
 
“We have forged a more efficient approach to developing Merian while upholding our leading safety, technical, social and environmental standards,” Newmont president and CEO Gary Goldberg said.
 
“This decision marks an important milestone in our portfolio optimisation process – we have divested nearly $800 million in non-core assets to help fund the next generation of lower-cost projects in our portfolio.
 
“Equally important, we established community agreements and are working with experts to minimise our impact on the environment – getting it right from the beginning is critical.”
 
Meanwhile, the company delivered June quarter attributable net income from continuing operations of $182 million, compared with a loss of $2.1 billion in the same quarter of last year, and adjusted net income for the second quarter of $101 million, compared to a $90 million loss last year.
 
Gold production rose 5% to 1.22Moz, while copper production rose 4% to 20,200 tonnes.
 
Costs applicable to sales dropped 17% to $744/oz gold and by 67% to $2.53 per pound of copper, while AISC dropped to $1063/oz and to $3.69/lb.
 
Operating cashflow for the quarter was $378 million and free cashflow was $124 million, with $359 million shaved off AISC.
 
Australian and New Zealand gold production rose 12% to 468,000oz, while AISC dropped 35% to $926/oz.
 
At Boddington, gold production dropped 2% due to lower grades, while Tanami output surged 53% due to higher grades and improved mining rates and Waihi production jumped 64% due to increased mining and throughput.
 
At the Super Pit, production rose 5% to higher ore grades and recovery, improved throughput and higher concentrate production, while cash costs dropped 46%.
 
The company has upped its group guidance for the year after the strong June quarter.
 
Newmont now expects to produce 4.7-5Moz gold, up 2%, at cash costs of $720-760/oz, down 3%.
 
The company reported no progress on the Indonesian export dispute, which has left its Batu Hijau mine on care and maintenance and unable to export copper concentrate, but said it continued to work towards a solution.