Suriname and Chinalco Sign Memorandum of Understanding to Mine Bauxite
Introduction
Suriname has signed a Memorandum of Understanding (MoU) with the Chinese-based Aluminum Corporation of China Limited (Chinalco) to mine bauxite in West Suriname.
The Agreement
The agreement was signed on Monday night by Stanley Raghoebarsing, Finance and Planning Minister; David Abiamofo, Minister of Natural Resources; and Dong Jianxiong, Vice President of Chinalco. In a statement, President Chandrikapersad Santokhi emphasized the great importance of these developments for Suriname.
Key Terms of the Agreement
- Initially, the mining operation will employ five hundred workers and over fifteen hundred contractors.
- The government will soon submit the MoU to the National Assembly to obtain the appropriate legislative support and approval.
- Chinalco will invest US$426 in the project, and Suriname will participate with 13 percent shares in the deal.
Development of the Bauxite Industry
The area contains an estimated 324 million tonnes of lower-quality bauxite. However, producing six million tonnes a year will take 50 years, while the deal is for 30. The three components of the mine’s value are community development, estimated at US$800,000 annually, equity and royalties of US$29 million per year, and the life of the bauxite mine, based on the current price, should yield more than US$30.
Conclusion
The signing of this MoU marks an important step in the development of the bauxite industry in West Suriname. The government’s intention is to create socio-economic opportunities and maintain the country’s green image.
FAQs
Q: What is the estimated value of the bauxite mine?
A: The estimated value of the bauxite mine is US$800,000 annually for community development, US$29 million per year for equity and royalties, and more than US$30 based on the current price.
Q: How long will it take to produce six million tonnes of bauxite per year?
A: Producing six million tonnes of bauxite per year will take 50 years, while the deal is for 30.
Q: What is the investment from Chinalco?
A: Chinalco will invest US$426 in the project.
Q: What is the role of local communities in the project?
A: The Santokhi government has stipulated that every potential investor continuously involves the local communities in the area’s activities.
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