(de Ware Tijd) PARAMARIBO – The gold deals the government is about to sign with Iamgold and Newmont mean at least 50% of gold revenues will stay in Suriname, Public Works (OW) Minister Ramon Abrahams stated at an event in Voorburg, Commewijne yesterday.
After a presentation by the two negotiating commissions, the Council of Ministers approved the gold deals early Wednesday morning. Abrahams said Suriname will get 30% of the shares in its deal with Iamgold and 25% in the deal with Newmont. The tax rate of both multinationals is to be 36%. Suriname has 5% of the shares under the first agreement on the Rosebel mine. After the Venetiaan government had reached an agreement in principle with the multinationals, negotiations resumed after the Bouterse government took office. The negotiating teams reportedly have managed to obtain an additional share of 5%, in addition to more royalties than under the previous agreement.
Suriname must invest around US$402 million to participate in the two gold mines. Parliament must still approve the agreements. “Personally I would rather have Suriname establish its own gold company based on the Staatsolie model. Unfortunately, we cannot do this, as we lack the expertise, capital and access to and knowledge of the market,” is the first reaction of DOE legislator Carl Breeveld. To him, the transfer of technical and market knowledge to Surinamese is important too, so he calls for transferring knowledge to Surinamese who will be involved in the operations.
Says Breeveld, “Under this deal with Newmont, I would strive for at least a majority share for Suriname. But if the deal is as reported, I think we now have a better deal than the one made with Iamgold then. I can live with it, but believe Suriname should keep a close eye on things.” The politician adds that the duration of the agreement must be kept in mind so “developments can be anticipated in time for Suriname to benefit from those.”
