After a century, Alcoa negotiates exit from Suriname

Aluminum producer would turn over dam, pay up to $400M for environmental cleanup

Alcoa and a Suriname government commission have negotiated an agreement governing the Pittsburgh aluminum producer’s departure from the South American country, where it has operated since 1916.

The proposal calls for Alcoa to turn over a hydroelectric dam that powered its former operations there, with the exchange coming 14 years ahead of schedule, according to Rudi Dilip Sardjoe, Suriname’s leading business magnate and the head of the government commission.

Mr. Sardjoe said the confidential agreement also requires Alcoa to spend between $300 million and $400 million on an environmental cleanup of its former alumina refinery, aluminum smelter and mining areas.

“Alcoa did a fantastic job for this country. It’s going to cost them a lot of money, but they did a fantastic job,” Mr. Sardjoe said in a telephone interview.

Mr. Sardjoe’s estimate exceeds what Alcoa has disclosed will be spent on environmental cleanup, demolition, and other costs associated with ceasing operations in the little South American country.

Suriname has been roiled in recent weeks by accusations that its executive branch has been concealing information about its dealings with the metals company. Those complaints were aired Monday at a raucous session of the National Assembly, the legislative branch of Suriname’s government.

Assembly members had