Canadian gold producer Iamgold has signed an agreement with the government of Suriname for the expansion of its Rosebel gold mine in the country, as well as extension of a partnership to develop the mine until 2042.

Iamgold chief executive officer Steve Letwin was quoted by Reuters as saying that the gold mining operations across the world were facing challenges such as declining prices and increasing operating costs.

Despite the challenges facing Rosebel, the company is confident due to the strength of its partnership with the government, Letwin said.

Located in the Brokopondo district in north eastern Suriname, Rosebel gold mine produced 385,000oz of gold in 2011, and has a mine life of more than 19 years.

In April 2013, Iamgold received approval from Suriname parliament for the agreement it earlier signed with the South American country for the expansion of Rosebel mine.

Suriname comprises deposits of gold and bauxite, and has a promising oil industry.