By Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com

PARAMARIBO, Suriname: The Suriname government is growing impatient with the lack of progress being made in negotiations with mining multinationals Alcoa and BHP-Billiton to sign a multi-billion bauxite mining contract Natural Resources minister Gregory Rusland announced last week.

Suriname is seeking to secure continuation of the bauxite industry, including development of new mines and establishment of an integrated aluminum sector, since current resources would be depleted by 2010.

“We were trying to negotiate in a relaxed manner, but the government is losing its patience with the lack of progress and we arrived at a point that we will communicate this to the companies,” said the minister in an invited comment.

He further added that, if talks with Alcoa and BHP-Billiton don’t produce results shortly, the government will look into other options and invite other possible investors.

The Suriname government is aiming at establishing an integrated aluminum industry, including bauxite mines, an aluminum smelter and hydro-power facilities in West-Suriname, while the two multinationals are only willing to operate bauxite mines in the said region.

Warren Pedersen, general manager of Suralco, a local subsidiary of Alcoa, said recently that, due to developments on the international markets, investment costs for the West Suriname operations have increased to nearly US$5 billion.

Suriname wants to keep the current alumina refinery in Paranam, since several hundred people are employed there, but it also wants to develop an integrated aluminum industry.

“If that seems impossible with the current companies we will certainly try to implement those plans with other partners,” the minister warned.

“We have some ideas but the situation is not that easy since we are talking about multi-billion investments and there are not a lot of companies that could mobilise that amount of money,” Rusland added.

On April 3, a top delegation of Alcoa traveled to Paramaribo to discuss several issues with the government after joint-venture partner BHP-Billiton reportedly presented a unilateral proposal to the government without consulting Alcoa/Suralco.

Several years earlier, the two companies signed a Memorandum of Understanding for the West Suriname operations. Feasibility studies have indicated some 325 million tons of bauxite in the Bakhuys Mountains in West-Suriname.

Meanwhile, Member of Parliament Winston Jessurun reiterated earlier views urging the government to look for other investors, since according to him the mining companies are deliberately delaying the negotiations.

According to the politician, Suriname should look after its own interest and seek ways to interest other possible investors for the project.

In August 2007, a Chinese business delegation, including officials from the China Development Bank, China Aluminum Company (Chalco), Sino-Hydro and China Grid, traveled to Suriname for talks with the Suriname government.

According to Rusland, the Chinese companies had also shown interest in investing in the bauxite sector.