Gold accounts for roughly 80% of Suriname’s annual exports, making it central to the country’s economic prospects. The nation’s most notable Western multinational investor is Newmont. The Denver, Colorado-based mining company has invested $1.2bn in Suriname since it began exploration activities back in 2004.

At its open-pit Merian goldmine, about 175km from the nation’s capital Paramaribo, Nemont has produced 3.1 million ounces of gold since starting commercial operations in October 2016. The mine is expected to continue production for another 10 years. 

Mark Rodgers, the managing director of Newmont in South America, tells fDi about the company’s experience investing in Suriname and the efforts being made to reduce the environmental impact from mercury used by artisanal miners.

Q: What is your assessment of the business and investment climate in Suriname?

A: Newmont is Suriname’s largest direct foreign investor and plays a significant role in supporting and progressing the nation’s economic development. Ongoing contractual stability and partnership with the government remain foundational for sustainable and responsible mining and natural resource development to continue in this Caribbean nation.

The Merian mine operates under a Mineral Agreement, which was signed with the government of Suriname in 2013 and approved by the Surinamese parliament prior to construction of the mine in August 2014. The agreement establishes the legal framework that governs various aspects of the operation including taxes and royalties, hiring and labour conditions, import and export requirements. An essential part of this agreement is the definition of projects and programmes for creating and sharing value generated by the mine with the operation’s various stakeholders.

Q: What are the main challenges Newmont has faced with investing and operating its mine in Suriname? 

A: Suriname is experiencing high levels of national debt to foreign creditors along with persistent and high inflation rates. Significant devaluation of the Surinamese dollar against the US dollar in recent years has resulted in an increase in the prices of many goods and services.

We are working closely with the government to maximise the benefits of our operation. Newmont Suriname remains committed to generating value for Suriname by serving as a catalyst for economic and social development, sharing knowledge, building capacity, and contributing to meaningful partnerships to enhance positive development outcomes.

Q: Does small-scale informal and artisanal gold mining present challenges to Suriname?

A: Artisanal and small-scale gold mining (ASM) is a source of income for many in the interior of Suriname and often leads to environmental degradation and extreme safety hazards for those working in ASM.

Around 25,000 people in Suriname make their living from ASM which has been active in Suriname for more than 300 years. The government of Suriname is very supportive of Newmont’s proactive work to improve the safety and environmental conditions of those engaging in ASM in the vicinity of the Merian mine. In addition, the government has signed the Minamata agreement to ban the use of mercury in ASM.

Newmont has introduced a comprehensive ASM strategy that aims to protect Newmont’s people and assets while still recognising ASM’s cultural and livelihood importance, especially to the neighbouring Pamakan community. In parallel, Newmont is working to create an offset to compensate for biodiversity impacts and completed a pilot for the reforestation of land affected by ASM within Merian’s mining claim.

Q: Any final thoughts?

A: Newmont has a long history of investment in Suriname beginning in 2004 when we initiated our exploration activities. Our experience of investing and operating in Suriname has been very positive and we look forward to expanding our business in the Guiana Shield encouraging future growth and economic development.

This interview has been edited for clarity and brevity.