Financial Crime World

Regulating Small-Scale Mining: Suriname Takes a Step Towards Sustainable Development

Introduction


The government of Suriname has taken steps to restore its authority over the small-scale mining sector, improve environmental performance, and recover tax income. This effort is crucial for ensuring sustainable development and protecting the environment.

The Gold Sector Regulation Commission (OGS)


In September 2020, the OGS was reinstalled as a commission under the administration of the Vice-President of Suriname. The primary goal of the OGS is to:

  • Register previously unregistered miners
  • Expel small-scale operations from areas of conflict

State Decree and Database Development


A state decree was issued in October 2021 for the development of an inventory and registration of those active in small-scale mining and their mining equipment. This database will be used during a three-year transition period to:

  • Formalize actors working illegally in the sector
  • Gradually criminalize illegal mining by both Surinamese and migrant miners

Importance of Regulation


The government recognizes the importance of regulating the small-scale mining sector to ensure sustainable development and protect the environment. The lack of an adequate legal and regulatory framework has led to:

  • Environmental degradation
  • Social conflicts

Community Engagement and Transparency


A Community and Engagement Unit was established within the Ministry of Natural Resources (MNR) in July 2020 to provide guidance for community engagement in natural resource development. The government is also pursuing a transparent policy, including the principle of Free Prior Informed Consent (FPIC).

Collaborative Approach


The Surinamese government is working with various stakeholders, including:

  • Tax authorities
  • Ministry of Justice and Police
  • Ministry of Spatial Planning and Environment

to achieve an integrated approach to problems in areas such as:

  • Taxation
  • Safety and security
  • Environmental degradation
  • Lawful citizenship
  • Labor

World Bank Study


A World Bank study found that Suriname’s regulatory framework lacks adequate provisions for managing environmental and social impacts, creating risks for sustainable development and new private investors. The study also highlighted the need for improved transparency and capacity to monitor and enforce environmental and social regulations.

Project Update


The government is currently working on updating the mining decree and protocols with a project financed by the World Bank aimed at strengthening governance, transparency, and accountability in the mining sector.

Expected Outcomes


The efforts to regulate the small-scale mining sector are expected to:

  • Improve the country’s ability to generate revenue from the sector
  • Address environmental and social concerns

By implementing these measures, Suriname is taking a crucial step towards sustainable development and protecting its natural resources.