Caribbean’s first gold refinery expected to earn billions for Suriname

Caribbean’s first gold refinery expected to earn billions for Suriname

Gold bars

Gold bars

Suriname produces an average of 40 tons of gold a year, but until now it has had no large scale refining capacity.

Suriname, Monday March 18, 2013 – The Government of Suriname has embarked on a joint venture with the Kaloti Group of Dubai to establish the first gold refinery in the Caribbean.

The refinery that is being built near the village of Wit Santi, close to the country’s International Airport, is expected to start operating by next year and produce as much as US$2.77 billion worth of refined gold.

On March 16,  President Desi Bouterse joined Kaloti Chairman Munir Kaloti in expressing high expectations of the facility.  The US$20 million plant should make Suriname into a “centre of excellence for the region’s gold and precious metals industry,” a joint release said.  

The Government entered into a joint venture with the precious metal refiners out of Dubai last year, and over the weekend the start of the construction of the smelting and bullion manufacturing plant was announced.

The Kaloti Group is one of the world’s largest gold and precious metals refiners and trading houses. The company, its subsidiaries and associates employs 300 people  and is also located in  Singapore, Hong Kong, Miami and Istanbul and a gold and precious metals refinery in Sharjah (UAE).

Suriname produces an average of 40 tons of gold a year, but until now it has had no large scale refining capacity. The new refinery will be called Kaloti Suriname Mint House and will be the first of its kind in Suriname and the region, the company boasted.

The refinery is expected to produce as much as 60 tons of refined gold when it is fully up and running in 2016. Initial refining is scheduled to begin by the middle of next year. It will focus on melting and producing gold bars to international purity standards of 999.9%.

“We are pleased to have been handpicked by Suriname’s government to construct its first gold and precious metals refinery and mint house as they push ahead with their efforts of regulating, monitoring and modernizing the country’s gold and precious metals sector,” said Kaloti Group Chairman Munir Kaloti. ”

It is a real testament to our international reputation and market leadership position based on more than 25 years of continuous operation in emerging markets and more than 17 years of collaboration with Suriname gold traders.” He said the joint venture strengthens his company’s position as a global provider of refined gold and increases its presence in the western hemisphere.

President Bouterse said the joint venture is meant to maximise the value of Suriname’s mineral assets. “This collaboration will bring significant value to Suriname and its mining industry in terms of international reputation, knowledge and experience of gold and precious metals refinery and bullion trading,” he said. (Caribbean 360).

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Notes: In 2012 Guyana recorded historical levels of declared gold production by surpassing 416,000 ounces. Gold is now the highest revenue contributor to the economy.

It has been reported that substantial amounts of gold is not declared. Also gold is smuggled  from nearby Guyana and French Guiana and declared in Suriname, due to its comparatively lower duties on declared gold.  Therefore Suriname’s average gold production of 40 tons/year may include gold smuggled from Guyana, French Guiana and other countries.

Gold is measured in Troy ounces and 1 Troy ounce equals 1.0971428571 ounces.

  • 1 metric tonne = 32,150.746 Troy ounces
  • 1 short ton of 2000lb (US) = 29,166.667 Troy ounces
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Comments

  • wycs  On April 21, 2013 at 9:41 pm

    Would the opposition Party in Suriname behave as stupidly as our Opposition here in Guyana? I don’t think so as they know what is good for their people when Investments are made for the benefit of all. The opposition parties in Guyana have bird brains and at this point in time do not know what harm they are doing ot they know, but just do not care. It is just a matter of time before another election is urgently done to reduce the number these parties. The people of this country are very disgusted with the way they are cutting important Investments. The Govt will have the last laugh.

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