NF government made a blunder with Billiton bauxite deal

If the New Front government had not made a blunder during the negotiations with BHP-Billiton in 2008, Suriname would still have a bauxite industry that would also help other sectors to contribute to the nation’s economy. President Desi Bouterse recently concluded that the then government made a huge blunder. “Nobody knows or maybe they do why the then government made those decisions”, said President Bouterse who added that the plan which Billiton had presented would save Suriname’s bauxite industry and make a contribution to the further sustainable development of Suriname.

Billiton proposed a joint venture with Alumsur and 100% of the shares would belong to the State and Billiton. The multinational had already out aside $ 800 million for the development of a bauxite mine at Bakhuys, the Construction of a train loading station, the purchase and installation of a crusher, the Construction of a railroad between Bakhuys and Apoera for the annual transportation of 13.7 million ore, the construction of an offloading station and bargeloading harbor at Apoera, the dredging of the Corantijn River and the estuary of the Nickerie River and the construction of new bauxite offloading facilities at Paranam. “Alumsur would participate for 10% in the projects without having to contribute capital and Billiton just wanted to secure 68 million tons of bauxite of the available 760 million tons located in the Bakhuys area”, said President Bouterse.

If the then government had accepted Billiton’s proposal in 2008, the infrastructure would have been handed over to the State in 2011. Biliton asked for 3 million ore of the available capacity of 13.7 million ore on annual basis as compensation for its investments. The rest would be for Suriname.

“The MOU that Billiton had signed was based on a bankable feasibility study which Billiton had $ 90 million for. If the then government had signed the MOU, the bauxite-alumina industry would have been secured for the next 100 years”, said President Bouterse who added that “closure of the bauxite industry in Suriname was the direct result of failure to sign the MOU in 2008.”