BHP-Billiton will cease Suriname mining operations by 2010
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| Published on Wednesday, October 29, 2008 |
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By Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com
PARAMARIBO, Suriname: The world’s largest bauxite mining company BHP-Billiton has announced that it will cease all mining activities in Suriname by 2010. Talks with the Suriname government to acquire a concession of 30,000 hectares and several tax benefits broke down recently, while also the US financial crisis has been taken into account to arrive at that decision, natural resources minister Gregory Rusland told reporters Tuesday at a press meeting.
The Australian-based company anticipates that deposits at its three mines in the country will be depleted by 2010. Effective immediately BHP-Billiton also stopped all its activities and investments into development of the Bakhuys deposits in west-Suriname where nearly US$90 million has been invested in exploration since 2003. With the closure of its mining operations in Suriname 1,100 jobs are at stake.
In a bid to temper concerns, the minister announced that the government is already taking steps to secure all jobs at stake including that of contractors. Bauxite is one of Suriname's top commodities, ranking third after oil and gold. BHP-Billiton holds a 45 percent stake in the country’s Paranam refinery while Suralco/Alcoa holds the remaining 55 percent.
According to Rusland, the BHP-Billiton shares are available to the government but it is still to be decided how the takeover should take place. BHP-Billiton is the first company in Suriname to close its operations due to the current global crisis among other things.
Sources indicate that BHP-Billiton’s managing director John Sew A Tjon has resigned after being informed of the closure by the company’s top official Frank Plantenberg, who came to Suriname to inform the government. Sew A Tjon reportedly resigned since, as a Surinamese national, he was reluctant to lay off workers in the period ahead. Company officials were not readily available to comment.
In an invited comment, Rusland disclosed that the government is examining several options, including cooperation with other multinationals. Just last week a delegation of Swiss company Glencore came to Paramaribo to discuss its interest to invest in Suriname’s bauxite sector.
According to the government official, Glencore will be contacted early next month for “serious discussions”. He also noted that he has extended an invitation to Chinese state-owned company Chalco who recently has also indicated its interest for establishing an integrated aluminum industry in west Suriname.
“We have several options to pursue our ambitions to develop the west Suriname bauxite deposits,” said Rusland. | | | | Reads : 1465 | | | |
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