Suriname announces establishment of new aluminum company
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| Published on Tuesday, July 15, 2008 |
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By Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com
PARAMARIBO, Suriname; Officials here have disclosed that the Suriname government is set to establish a new state-owned aluminum company aimed at advancing the industry. The announcement came during a press conference of the Council of Ministers headed by vice president Ram Sardjoe.
Minister of Natural Resources and Energy, Gregory Rusland, noted that he presented a proposal to the government to establish the entity. However the Council of Ministers has yet to sanction these plans.
Rusland further explained that he is opting for a new company, which would partner with either BHP-Billiton or Alcoa/Suralco or with both multinationals together to develop the bauxite deposits in the Bakhuys Mountains in West-Suriname.
The Suriname government is aiming for an integrated aluminum industry in West Suriname, including hydro-power facilities and a smelter. Negotiations with the joint-venture partners BHP-Billiton and Alcoa/Suralco have so far failed to produce an agreement on this issue.
According to the minister the two mining companies seem only interested in mining the bauxite in West Suriname for processing in the Paranam refinery several hundred miles east.
“We are not abandoning our aspirations to establish an integrated aluminum industry in West-Suriname, while at the same time keeping the Paranam refinery in operations,” Rusland said in an invited comment.
Asked whether the government could finance the establishment of its own aluminum company, the minister disclosed that production of the West Suriname deposits will cost some US$800 million.
“The intention is that Suriname comes in with the bauxite deposits and infrastructure and the partner with the required capital,” said the official.
He further disclosed that an international consultancy bureau is currently making an assessment of the existing infrastructure in the mining area, including roads and bridges, a rail track and port facilities.
“All these assets represent a certain capital value and that will be our contribution in this venture,” said Rusland.
The government is aiming at signing an agreement for development of the West Suriname project as soon as possible, since current deposits in East Suriname will be depleted by 2010.
While the government is still engaged in talks with BHP-Billiton and Alcoa/Suralco, it is also entering in talks with other interested parties, as months of negotiations with these companies have not produced any positive results.
So far only BHP-Billiton has presented a proposal to the government. The China Aluminum Company has indicated a possible interest in taking part in the West Suriname project but parties have not entered into talks as yet.
Just last week, a delegation from Swiss company, Glencore International AG, visited Suriname to discuss possible investments in the bauxite industry.
While he welcomed the company's interest, vice president Sardjoe noticed that the government is not only looking at financial benefits for the country if it is to enter into an agreement with foreign investors. The government is also focusing at the reliability of its partners, sustainability and continuity, he argued.
“Glencore has many possibilities to offer. We must examine now how to match these with our needs,” said the vice president. | | | | Reads : 249 |
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