Suriname to negotiate deal with bauxite multinationals

Negotiations between the government and multinationals BHP-Billiton and Alcoa regarding production of bauxite and aluminium in western Suriname will take place shortly, president Ronald Venetiaan informed parliament on Monday.

Explorations by the two mining companies were successfully concluded this year showing reserves of 325 million tons of bauxite.With this quantity, production of a minimum of 3 million tons of aluminium could continue for 40 years, said Venetiaan in his 2007 budget presentation during an Extraordinary Session of the National Assembly.

With regard to the construction of an aluminium smelter in Western-Suriname studies so far have yet to show economic feasibility and more research is necessary. Also with respect to the construction of a hydro-power plant in the area further research and studies are necessary.

In 2003 the government and the two joint-venture companies signed a Memorandum of Understanding to develop the bauxite reserves in the Bakhuys mountains. At the Lelydorp mines bauxite production has dropped, while at the Coermotibo site in eastern Suriname will also be terminated within a few years.

Earlier this year BHP-Billiton and Alcoa began production at the so-called Successor Mines in Kaaimangrasie and Klaverblad.

Production is estimated to last for about 12 years. The multinationals needed to expand their activities to other parts of the country since production in the traditional mining areas are coming to an end.