Surinamese Business Sector Criticizes 'Selling off of Resources' to Chinese Mining Giant
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World
December 7, 2024 11:00
paramaribo, suriname - Suriname's business sector expresses disapproval of the government's agreement with Chinese mining giant Chinalco, stating concerns over the export of unprocessed bauxite and its environmental impact.
Following criticism from environmentalists, opposition leaders, and indigenous Surinamese, the business community has voiced serious discontent with the preliminary agreement reached by President Chan Santokhi's government with Chinese mining giant Chinalco on the night of November 25.
The Surinamese Business Association (VSB), the largest employers' organization, describes the export of unprocessed bauxite as a 'sale of high-value resources.' 'No refinery, no deal!' the entrepreneurs firmly state.
Chinalco would transport the raw ore, a key ingredient for aluminum, unprocessed to China. VSB advocates for not only a mine but also an alumina refinery. This would increase the value of the ore by at least twenty times and create a minimum of ten times more jobs than just a mine would offer.
The organization highlights the detrimental environmental effects. The loss of 6000 hectares of primary forest would result in approximately 4 million tons of CO2 emissions, estimates VSB. Suriname could potentially lose 250 to 300 million US dollars in revenue from carbon credits: carbon offsetting.
The employers call for a thorough investigation into the environmental and human impacts and urge respect for local communities in the area. Apura, the village in the proposed mining area, is predominantly inhabited by indigenous people of Suriname.
Suriname expects substantial revenues from the offshore oil industry in 2028. Therefore, according to VSB, there is no rush to make a deal that only offers short-term benefits. President Chan Santokhi's government began approaching investors in November 2023, with interest also from Boskalis and Bosai Minerals Group.
Suriname opted for Chinalco, which would invest around 426 million US dollars in establishing a mine and infrastructure restoration. Suriname would receive a 13 percent stake in the upcoming businesses. The agreement with Chinalco still requires approval from the National Assembly, Suriname's parliament.