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Suriname

Legislation

  • Mining Decree 1986
  • Environmental Framework Act 2020

Regulatory Risk Rating

Severe
Regulatory Risk

Regulatory Corruption Risk

Extremely High
Regulatory Corruption Risk

Corruption Exposure Risk

Moderate
Corruption Exposure Risk
Regulatory Risk Rating Factors Risk Level
First Come / First Serve Subscribe
Application Critiera Subscribe
Duration Subscribe
Right to Renew Subscribe
Competing Licences Subscribe
Mineral Coverage Subscribe
Right to Mine Subscribe
Criteria for Mining Rights Subscribe
Tenure Subscribe
Surface Rights Subscribe
Government Take Subscribe
Transfer Rights Subscribe
Change of Control Subscribe
EIA Process Subscribe
Power to Revoke Subscribe
Age of Legislation Subscribe
Other Factors Subscribe

Few international investors and operators have or will opt to pursue a project or investment in Suriname under the terms of the Mining Decree alone, which is outdated and unsuitable for the regulation of modern industry. Instead, they will need to make use of the ability to enter into Mineral Agreements which must be negotiated with the State and are passed as standalone laws in the country. A solid and seasoned negotiating team will be able to take advantage of this opportunity and circumvent the many issues and risks posed under the Mining Decree – ultimately creating an investment environment which poses a far lower degree of legal risk than that posed under the Mining Decree alone.

Contents

Legislation

  • Mining Decree 1986
  • Environmental Framework Act 2020

Regulatory Risk Rating

Severe
Regulatory Risk

Regulatory Corruption Risk

Extremely High
Regulatory Corruption Risk

Corruption Exposure Risk

Moderate
Corruption Exposure Risk

Overview

There is little doubt that Suriname’s economy is dominated by the extractives industry, with oil and gold accounting for more than 80% of exports and 27% of government revenues (EITI). The country was formerly a major bauxite producer – with bauxite the primary mineral export prior to 2008 when gold took over (IGF). In fact, the bauxite industry in Suriname dates back to 1916 and experienced major booms through the First and Second Word Wars. The main bauxite reserves were, however, largely depleted by 2012; though there has been some discussion about reinvigorating the bauxite industry, the investment required to locate new deposits in more remote areas and therefore deal with infrastructure, transport and water issues has not been forthcoming from the private sector and is seen to be too high risk for the government to pursue alone.  Suriname is also believed to have small deposits of nickel, copper, iron ore and diamonds, though none of these minerals are currently being mined. Artisanal gold mining has been known to account for more than half of the country’s gold production (IGF) and is a major source of employment in Suriname.

As with most countries where the economy is overly reliant on its natural resource industries, changing commodity prices can cause major economic impacts in Suriname. The fall of global commodity prices in 2014 and subsequent closure of various bauxite mines and associated infrastructure (processing plants, refineries etc.) contributed heavily to the devaluation of Suriname’s currency – causing economic problems as recession hit the country. Though it seems clear that economic diversification is required, numerous Surinamese governments have failed to adequately handle this task. Besides the issues faced by Suriname from an economic viewpoint, other mining related challenges arise mainly from the artisanal sector, with deforestation, mercury contamination and water pollution amongst major environmental issues.

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