UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT
MULTI-YEAR EXPERT MEETING ON COMMODITIES
AND DEVELOPMENT
9-10 April 2014
The Mineral Sector of Suriname:
Employment Creation and Capacity Building
by
Mr. Glen Gemerts
Senior Geologist
Chairman, Intergovernmental Forum on Mining Minerals
and Metals (IGF)
The views expressed are those of the author and do not necessarily reflect the views of
UNCTAD.
The Mineral Sector of Suriname:
EMPLOYMENT CREATION
AND CAPACITY BUILDING
Glenn Gemerts, M.Sc. &
Preciosa Simons, M.Sc.
Geneva, Switzerland
April 10, 2014
1
Outline
1.
2.
3.
4.
5.
6.
7.
8.
Suriname at a glance
The mineral sector & commodities
Employment
Capacity building
Options for employment creation
Options for capacity building
Growth
Sustainable development
2
1. Suriname
at a glance
BASIC INFORMATION
Area :
163,270 km²
Population:
534,189
Language
Dutch + 10 more
Political
system
Parliamentary/
Presidential
Literacy
90%
Per capita
income
US$ 9,100
Economy
Oil, gold, bauxite,
agriculture, forestry
Power
production
180 MW
(100 MW hydropower)
3
2. The Mineral Sector & Commodities
•
•
•
•
•
•
•
•
Hydrocarbons
Gold
Bauxite
Building materials
Kaolin
Granite (under development)
Educational institution
Training Institutions
4
Overview Exports
5
3.Employment
o Growth in recent years has been driven by private sector growth.
o Public sector employment has grown only moderately.
o Unemployment rate below industrialized country levels.
100
Private and public sector employment (in thousands) and
unemployment rate (in percent of workforce) 2005-2012
Private sector employment
75
15,0
12,5
Unemployment rate (right axis)
50
10,0
Public sector employment
25
0
7,5
5,0
2005
2006
2007
2008
2009
2010
2011
2012
6
3. Employment/4. Capacity building
SECTOR
EMPLOYMENT
EDUCATION/TRAINING NEEDS
Hydrocarbons
1000 (1700 indirect)
University geologist & engineering,
mid- and lower-level technical skills
Gold (large-scale
mining)
Iamgold 1200 direct, 2000
indirect (Newmont/Surgold
will double this figure)
University geologist & engineering,
mid- and lower-level technical skills
Gold (small-scale
mining)
15,000 direct & 25,000
indirect
Small/medium enterprise
management, mid- and lower-level
technical skills
Bauxite
700 direct & 600 contractors Alternative employment for about 1
thousand employees & contractors
Building materials
1000 direct and 1000
indirect
Small/medium enterprise
management, mid- and lower-level
technical skills
Kaolin & granite
50 & 50 indirect
University geologist & engineering,
mid- and lower-level technical skills
Education/training
Tertiary 500 and Senior &
junior secondary 1000
Upgrading of teaching and technical
skills – advanced degrees (Ph.D.) 7
5/6. Options for Employment Creation
& Capacity Development
SECTOR
NEW JOB OPPORTUNITIES
ACTION ITEMS
Hydrocarbons
Expanded refinery comes
on line
Gasoline/diesel units added, highly
skilled managers/workers needed to
manage more complex plant
Hydrocarbons
Potential for off-shore
discovery is high
Total transformation of sector, highly
skilled policy makers, technical managers, finance managers & highly skilled
workers (new off-shore industry)
Gold (largescale mining)
Iamgold expansion and
new Newmont/Surgold
plant & other prospects
Highly skilled policy makers, technical
managers, finance managers & highly
skilled workers
Gold (smallscale mining)
Thousands of job opportunities for more sustainable
mining operations
Total transformation of the sub-sector,
highly skilled policy makers, technical
managers, finance managers & skilled
workers for mercury free mining
Other
Bauxite sector needs
revival, kaolin & granite
have growth potential
Aggressive revival policy & strategy,
incentives to develop sectors; high
level policy & investment skills training8
7. Growth
• Macro-economic indicators per sector
Hydrocarbons
(State Oil Company’s
Refinery)
Gold (e.g. small scale
mining)
Bauxite (Suralco (Alcoa) Mine
Operations)
9
Staatsolie has continued to perform strongly on both operational as well as financial
dimensions
Annual crude production sustained
x 1 MMBBLS
6.0
5.9
5.9
5.8
6.0
5.9
6.0
Financial Performance has continued to impress
x USD mln
Net Revenue
1200
80%
5.0
69% ROE
1000
4.0
1043
600
400
548
565
46%
40%
360
414
28%
50%
46%
33%
434
479
298
2008
250
200
2009
2010
2011
Contribution to the State has been significant
x USD mln
Taxes
Dividend
2012
150
2009
2010
199
Staatsolie
1800
153
159
58
2013
Outsourcing
1600
740
1200
94
2012
1400
126 122
100
2011
Creating increased opportunities for employment
x 1 FTEStaatsolie
Outsourcing
169
145 144
0%
2008
2013
30%
10%
0
-
40%
20%
181
200
1.0
60%
771
413
2.0
70%
EBT
800
3.0
1014
101
1000
800
66
670
590
610
765
785
865
960
695
2009
2010
2011
2012
2013
510
535
665
2008
600
50
400
200
0
0
2008
2009
2010
2011
2012
2013
Suriname’s offshore acreage divided into blocks
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GOLD PURCHASING AND PRODUCTION IN SURINAME
(Estimates based on LSM production and SSM purchasing figures)
VALUE LSM
V
a
l
u
e
VALUE SSM (x 1000)
TOTAL VALUE (x 1000)
4000000
3500000
3000000
2500000
(
x
1
0
0
0
2000000
)
0
1500000
1000000
500000
Year
Not all SSM gold purchased by licensed gold buyers was
produced in Suriname.
Rosebel Goldmines (Iam gold) started production in 2004
12
Bauxite
13
Overview of Bauxite & Alumina
6 000 000
Bauxite (bdmt) Production
4 000 000
3 000 000
Alumina (mt) Production
2 000 000
2012
2011
2010
2009
2008
2007
0
2004
1 000 000
)
Year
700
704
600
500
400
300
716
642
413
450
440
491
360
323
200
Alumina Exports
Value(US$)
100
2012
2011
2010
2009
2008
0
2007
U
S
$
800
2006
Millions
Alumina Exports Value (US$)
2005
(
m
t
2006
Quantity Exported Alumina(mt)
2005
T
o
n
5 000 000
2004
M
e
t
r
i
c
Year
14
8. Sustainable Development
•
•
•
•
•
•
•
•
•
Sovereign fund
New mining law
Environmental law
NIMOS, National Environmental Foundation, should
become a much stronger agency
Mining Agency urgently needed
Improved fiscal regime
Tribal issues need to be resolved (chieftain and land
rights)
Migrant workers issues need to be managed
Education and training – aggressive policy and actions
15
• SOVEREIGN WEALTH FUND (SSSF)
In the future, the Government will only budget a partial
and stable portion of all mining revenue.
All other revenue - with all its volatility – will be
deposited into the SSSF;
The SSSF law and its management and
governance structures are being put in place.
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• New Mining Law:
Renewal of the outdated Mining Law of 1986 based
upon the current and future developments in the
Mining Sector.
• Environmental Law:
 It has been submitted to the National Assembly for
approval;
 For the time being the International Standards of the
World Bank are being used as guidelines;
 Suriname has signed several International Conventions
regarding the environment.
17
• Mining Agency:
 Suriname is in the process of transforming the
Geological and Mining Services, Bauxite Institute and
the Commission of Regulating the Gold Sector into a
Minerals Institute.
• Improved Fiscal Regime:
Create attractive investment climate for domestic and
foreign private investors for both small and large scale
mining projects.
• Tribal Issues:
 The government is looking at ways to establish land
right issues and
 to establish an economical zone (mining, forestry,
hunting, agriculture) for the different tribes.
18
• Migrant Workers Issues:
 Addressing issues regarding the migrant workers in the
Small Scale Gold mining Sector.
• Education and Training:
 Cooperation between SURMAC and NATIN for training
teachers, alumna and students in heavy machinery;
 Polytechnic College is also working closely with local
companies in providing special practical courses
depending on their request.
19
Suriname
“A Way Forward”
Thank you!!
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