Suriname bauxite company in debt

Bauxite mining company Suralco is in the red and needs to change its policy drastically to be able to compete on the world market. Production costs have to be cut, but although this may look like a difficult task, it is not unachievable, says the new Managing Director Ruben Halfhuid. He is ready for the challenge. “The company’s future is very clear: Suralco is here to stay. We’re not a hit and run company.” Halfhuid, barely a month after his appointment, is completely at home at Suralco. “I have an enormous job ahead of me: the world market price for aluminum has hit rock bottom while our production cost keep rising. This means we’re deep into the red and we’re not making profit,” the new man at the helm says. But despite the many challenges, Halfhuid knows he can beat the odds.

The Suralco executive estimates that there is bauxite for at least the next 50 years in Suriname. “We’ll have to explore new mines, the ones that are not in the ordinary places.” The Bakhuys range is an attractive option, but the company does not have a concession for that area. “However, the Suralco knows that area inside out, so it won’t be long before it applies for a concession. In the meantime, the company focuses on the Nassau range, although it is not really attractive. Nassau will be depleted in ten years. Bakhuys has enough bauxite for the next forty years and that’s an avenue to invest in.”

While the long term plans are being drafted, exploration for the red ore continues. New reserves are explored in the Coermotibo area near Moengo. Suralco also wants to give back concessions, because with 60,000 hectares in concessions, the company has the largest footprint in the world, although only 10 per cent of its concession is used for mining operations. “We want to give back depleted areas, as well as land that has not been used and the rehabilitated mines near Moengo.”

The many concessions cost a lot of money. Halfhuid began his career at the Suralco as industrial engineer in 1980. He toured several plants, including in the Netherlands, Haiti and Nigeria, but now he is back home, ready to take the former industrial trendsetter to great heights again.