Grassalco

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Grassalco

Grassalco Logo
Type	Public company
ISIN	🆔
Industry	Metals
Founded 📆	1971 (1971)
Founder 👔	Ministry of Natural Resources of Suriname
Headquarters 🏙️	Paramaribo, Suriname
Area served 🗺️	Suriname
Key people	Wesley Rozenhout (CEO)
Products 📟	Bauxite Aluminum Crushed stone Granite Sand Gold
Revenue🤑	SRD32 Million (Fiscal Year Ended December 31, 2016)
Operating income	SRD]16.4 Million (Fiscal Year Ended December 31, 2016)
Net income	SRD]12.2 Million (Fiscal Year Ended December 31, 2016)
Total assets	SRD35.9 Million (Fiscal Year Ended December 31, 2016)
Total equity	SRD88.9 Million (Fiscal Year Ended December 31, 2016)
Owner	State of Suriname
Members
Number of employees	133 (2016)
🌐 Website	grassalco.com
📇 Address
📞 telephone

Grassalco NV, Grasshopper Aluminum Company in full, is a Surinamese mining company. It is 100% state- owned and was established in 1971. Its main purpose is to extract minerals and ores from the soil, and it operates gold and stone quarries. In the 2010s, it expanded to the cultivation of ornamental plants.

History and background

Grassalco was founded in 1971 to mine the bauxite reserves in the Bakhuys region in western Suriname. These deposits were discovered in the early 1960s by the Geological Mining Service (GMD) and the Ministry of Natural Resources of Suriname. In Joint Venture with Reynolds the newly founded Grassalco investigated whether or not the Bakhuys bauxite met Reynolds criteria for building an alumina refinery to process the bauxite, namely: at least 50 million tons proven reserves with 50% available alumina. In 1975 Reynolds announced that the investigations had not shown sufficient quantities and grade of bauxite to satisfy the criteria for the construction of a Reynolds type alumina plant. Ultimately in 1976, the joint venture with Reynolds came to nothing. Nevertheless, in that year the construction of a railway line from Apoera to the bauxite area started. The Joint Commission was formed between the Government (Grassalco director), the Suralco and Billiton companies to look for an economically suitable alternative for the bauxite. Billiton proposed to substitute 325,000 Bdmt Onverdacht bauxite by 435,000 Bdmt Bakhuis bauxite and calcining the Onverdacht ore for refractory purposes. Suralco and Billiton decided to investigate the implications for the Paranam refinery. Following a pre-feasibility study on the matter Suralco recommended in 1980 to investigate the following two possibilities:

• Expansion of the refinery with 575,000 t/y, which equates to mining of 2 million tonnes of Bakhuys bauxite;
• Substitution of 325,000 Bdmt Onverdacht ore with 434,000 Bdmt Bakhuys ore.

Subsequently, BHP-Billiton concluded in a study (1977-1979) that the exploitation could not become large enough for the world market. After other options were explored, the government terminated the project, called "West Suriname Plan" in 1982. Ultimately in 2010 the BHP-Billiton company left Suriname after more than 70 years.

Grassalco then decided to diversify into other minerals. It took over a quarry in western Suriname, from which it produces products such as crushed stone. This accounted for almost half a million cubic pieces of stone, part of which was used for the construction of the railway, which later remained unused. In addition, part was used for the maintenance of the port of Apoera.

Rosebel gold mines

A joint venture was formed with Placer Gold to explore for gold in the Rosebel district of Brokopondo. From 1983 to 1986 it conducted this research independently. In a partnership with the Surinamese government and the Canadian Cambior, ownership was transferred to the working company Rosebel Gold Mines. The Rosebel gold mine grew to be the largest gold producer for Canada 's Iamgold. The annual production is about 300,000 ounces per year and reserves are estimated at 4 million ounces. In July 2017, Iamgold disclosed that they had increased their reserves by 80% and that the ounces they were adding would extend the life of the mine to 2028.

Bakhuys crushed stone operation

In 1972 and 1973 field work was carried out to select a suitable site for a rock quarry which should provide ballast material for the planned bauxite railroad between the Bakhuys Mountains and the village of Apoera on the Corantijn River. For the construction of the railroad at least 250,000 to 300,000 m3 of hard rock is needed, whereas after the completion of the railroad production has to be continued for maintenance and for harbor construction at Apoera. The minimum reserves of hard rock must therefore be about 400,000 to 500,000 m³. This was found at what is called Rosebel hill situated on the western border of the Bakhuys Mountains. Here Morrison–Knudsen (EMKAY), who held a contract to construct the railroad, opened a quarry to produce ballast material for that purpose.

Just in 1982 after transfer by the Foundation for Management and Redistribution Project Properties Railroad Western Suriname (Stichting Spoor) Grassalco received the equipment used by EMKAY to construct the railroad. With this equipment Grassalco could start exploiting the quarry which it also took over and opened in the vicinity of Camp 52 (Kamp 52, at 52 km from Apura).

Other mining rights and activities of NV Grassalco

NV Grassalco has several mining rights in its portfolio in Suriname. These become distinguished in rights to reconnaissance, exploration, exploitation, small mining and exploitation of building materials. The first three successive phases are mentioned granted by the Ministry of Natural Resources. The mining rights, also more known as concessions, the following areas are notably Maripaston in Para, Royal Hill in Brokopondo, Goliath in Para, Lely in Sipaliwini, Patamacca in Marowijne, Worsteling Jacob, Phedra, in Para, La Solitude in Commewijne and Camp 52, West Suriname in Sipaliwini.

• The exploitation right 'Maripaston', this is an area named after the Maripaston Creek, a tributary of the Saramacca River, located in the Para District. The company carries out within a size of 1375 hectares exploration for gold and exercises management acts related to the exploitation of gold and other minerals. In that context a Gravity Concentration Plant (GCP) was set up for processing of the waste left behind by the porknokkers (tailings, the so-called bakasanti) that contained enough gold to be profitable to exploit. The tailings were used until 2017. For replenishing of reserves for the GCP, as well as demonstrating an ore deposit of larger size, exploration continues.
• 'Royal Hill' is in the mining right of Rosebel Gold Mines NV (RGM) in the Brokopondo area. NV Grassalco has a processing agreement with RGM from their waste rock to crushed stone.
• The concession 'Goliath', named after the Goliath Mountains, is also in the district of Para. It is accessible by road to West Suriname. The size of this area is 26,000 hectares. Exploration work has been carried out here for gold and other minerals. The size of this concession is 200 hectares and it is located along the roadway to West Suriname. This mining right also contains many laterite occurrences.
• On the south-eastern part of the Van Blommestein reservoir in the district Sipaliwini, lies the Lely Mountains. Exploration work is underway in this 'Lely' area exported to gold, diamonds and other minerals.
• The 'Patamacca' area encompasses over 96,500 hectares (238,000 acres). This concession, 1200 hectares in size, is located in the Marowijne district along the road to Langatabiki. It is about 30 km (19 mi) from the bauxite town of Moengo. This concession was used for natural stone from 2009 to 2012. There were granite blocks mined with a volume of 1.5.x 1.5 x 3m. This material Grassalco exported to North Carolina in the United States of America.
• 'Worsteling Jacob' is located in Phedra in the Brokopondo district and is 394 hectares in size. After exploration, the intention is to set up an open mine for the production of boulders and/or crushed stone.
• 'La Solitude' is located 35 km (22 mi) from Paramaribo in the Commewijne District. It covers about 348 hectares (860 acres). Grassalco is planning to take on this concession to exploit sand.
• Right to exploit building materials at 'Kamp 52', this concession on the road to West Suriname, lies 52 km (32 mi) before Apoera and includes in total 1,340 hectares (3,300 acres). In the 1970s and 1990s, Grassalco has crushed stone and boulders produced on this mining right for major projects such as the construction of the sea dike in New Nickerie, the Jules Wijdenbosch Bridge over the Suriname River and the bridge over the Coppename River. Grassalco wants to pick up these production line in the near future again.
• Further searches for gold were made in vain in the north of 'Benzdorp'. The Surinamese government has the rights to gold mining in the Benz village and surroundings and has issued a concession to Grassalco, which provides contracts to the (Brazilian, Surinamese and French) gold miners for a monthly fee. Grassalco also undertook the excavation of natural stone at Patamacca. There is a large granite mine in the Patamacca resort which is operated by Grassalco.

Production

Under the leadership of later minister Sergio Akiemboto, Grassalco developed a new branch with InVitroPlants in the 2010s. With this, the company wants to grow ornamental plants and export them to the Netherlands, among others. In 2016, an average of 133 people worked for the company. The turnover amounted to 32 million Surinamese dollars, three quarters of which was realized with the sale of crushed stone and the rest was mainly gold. The raw gold is obtained from Rosebel and then sent to the Royal Canadian Mint where it is processed into 99.99% pure gold. This releases the by-product silver.

The main revenue is the royalties arising from the Minerals Agreement with IamGold. These are 80% directly passed on to the government, after which 20% remains for the company. This is by far Grassalco's main source of income and its level fluctuates with the amount of gold mined and the gold price on the world market.

External links

• IAMGOLD website
• Grassalco website

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