Suriname ‘bauxite industry languishing’

(de Ware Tijd) PARAMARIBO – Natural Resources Minister Jim Hok is sad about the bauxite industry’s languishing existence. ‘When this Administration came to office employment in the sector was dropping, the smelter had been closed, and in fact the bauxite industry is dying.’ Despite the dark prospects for Suralco, Hok considers it necessary that his ministry breathes new life into the industry. The American multinational celebrated its 95^th birthday yesterday. Suralco seems to be at a crucial point in its existence, while there is an urge to safeguard bauxite operations in Suriname. Operations have dropped to a low level; mines are almost depleted and the government is urging for revision of the Brokopondo Agreement. ‘Our policy is not aid but trade,’ says Hok, who hopes soon there will be positive prospects for both Suralco and the nation. The Suriname Bauxite Company, later to be renamed Suralco, was established some years after the abolition of slavery. The industry boomed while plantations were gradually deteriorating. World War II was especially a booming period when the Allied air-fleet was built from aluminum made from Surinamese bauxite. The profitable years justified the Brokopondo Agreement, a hydro-electric dam in exchange for concessions. In his address to Parliament last September, President Bouterse pointed out that the agreement needs revising, arguing that Suriname is still presented a large electricity bill, while after 50 years Suriname should own the electricity generated at the dam. The President claimed that due to the halted operations, Suralco cost more than it generates. In order to keep its refinery at Paranam operational, Suralco had to cut down mining operations in Suriname and incidentally import bauxite from Brazil. To keep production going until 2024 the company has casts its eyes on the Naussau Range. Eventually plans to mine in the Bakhuys mountain range will be polished. The project was frozen when partner BHP Biliton terminated its operations in Suriname. Managing director Peter de Wit, in his New Year address for 2011, had promised a rosy future, stating that Alcoa had been in Suriname for almost 100 years and had plans to continue for yet another 100 years. De Wit announced his resignation for private reasons after 16 years with the company. He served three years a managing director.