Mining market in Suriname

Suriname has long had a history of gold and bauxite mining, Canadian and U.S. firms lead investment in large-scale projects; the state is a minority shareholder. Rosebel mine, a major gold mine owned by Canadian company IAMGOLD Corporation and the Suriname government, and Merian mine, owned and operated by Surgold (subsidiary of U.S.-based Newmont Mining Corporation), are the largest productions. The gold sector includes numerous artisanal and small-scale (ASM) gold mining operations. ASM operations produce 60% of Suriname’s gold and are a major source of employment. Other notable projects include:

• gold recovery from ore and gravel exports to the Caribbean by state-owned Grassalco
• the Kaloti Precious Metals (U.A.E.) joint venture with the government and local gold traders for a gold refinery

Key opportunities for Canadian mining suppliers

Mineral processing

Industrial gold represents a continuously promising opportunity both for private companies and government. With both Rosebel and Merian mines operating large-scale projects in the region, and the ASM gold mining operations accounting for a major source of gold production, there are opportunities for Canadian mining suppliers offering services and solutions in:

• specialized drilling services
• geological studies and surveys
• training of mining operators and mining services
• underground mining
• data management (mining concessions)
• corporate social responsibility (that is, providing advisors)

Health and safety

Most workers in ASM operations do not abide by general occupational safety and health regulations but large-scale mining companies do. Demand for personal protective equipment, engineering equipment to improve biochemical and physical hazards, organization of health and safety practices and safety training continue to be needed by suppliers and service providers.

Notable challenges for Canadian mining suppliers in Suriname

• Businesses from the Netherlands have a built-in advantage in this former Dutch colony due to their common language, similar legal systems and common history. Engineers in Suriname who work for the government tend to have trained in the Netherlands or the United States. As a result, they are comfortable with the standards and these are the basis for which projects are designed.
• In Suriname, there is a heavy presence of Chinese companies operating in various sectors, often with the backing of the Chinese government (such as generous concessional loans for infrastructure projects in return for China providing the labour and construction services). This can make the market uncompetitive for Canadian companies.
• Although article 4.1 of the Suriname’s mining decree specifically mentions that “all mining activities (…) should take into account prevailing norms concerning safety and health of workers,” workers are not protected because these regulations are generally not complied with nor enforced.
• There is no air transport agreement between Canada and Suriname, nor is there a bilateral tax treaty or tax information exchange agreement.

Suriname business landscape

• Canadian companies in the region hold a good reputation. IAMGOLD Corporation’s Rosabel is the largest gold mine in Suriname. IAMGOLD investments have extended the operational life of the mine for at least 30 years.
• Numerous commercial advantages encourage foreign investments in the mining sector, including:
  • a moderate income tax rate
  • duty exemptions on imports of capital equipment
  • favorable depreciation rates
  • stability clauses in the exploration and exploitation phase
  • access to mining concessions by foreigners
  • Merchandise imports are primarily iron and steel products, machinery, electronics, electrical machinery and equipment.

Request a meeting

To learn more about the mining industry in Suriname, contact Jake Thomas (Jake.Thomas@international.gc.ca), Senior Trade Commissioner and Counsellor (Commercial), at the High Commission of Canada to Guyana and Suriname.