Sustainability in Suriname

Situated on the north coast of South America, Suriname is rich in natural resources and has significant hydropower potential.

Alcoa started operations in the country in 1916, and today has become the main supplier of bauxite, alumina, and hydro-energy in the country through its local subsidiary, Suriname Aluminum Company (Suralco). Suralco is a part of Alcoa World Alumina and Chemicals (AWAC), a joint venture between Alcoa and Alumina Limited, with Alcoa holding 60 percent.

In July 2009, Alcoa World Alumina acquired BHP Billiton’s bauxite and alumina refining interests in Suriname. Suralco and N.V. BHP Billiton Maatschappij Suriname (BMS), a BHP Billiton subsidiary, were joint venture partners in the country since 1984.

With this acquisition, Suralco became an even larger player in Suriname’s bauxite industry (mining and refining). The exit of BHP Billiton, whose direction was to cease in-country mining operations, required a policy shift from a closure-oriented strategy toward a strategy focused on continuing the country’s bauxite industry.

To address this shift, Suralco created a dedicated community relations department to help realize its corporate social responsibility goals and objectives. In 2010, the new department developed an integrated community relations strategy that resulted in a road map and objectives for 2011.

The strategy has the following essential elements:

• Compliance with Alcoa standards, international best practices, and national legislation and guidelines through engagement with local communities and their representative organizations to establish and maintain a mutually beneficial relationship;
• Engagement with the Bauxite Institute Suriname (BIS) and the National Institute for Environment and Development in Suriname (NIMOS);
• Achievement of meaningful and systemic environmental sustainability; and
• Engagement of the workforce in volunteer projects and events, which results in a more motivated, innovative, and productive workforce.

In 2010, Suralco integrated sustainability and social responsibility into its business model. One result is improvement in the Alcoa volunteer program, with 39% of the total workforce participating in 2010 compared to 24% in 2009.

Other sustainable activities undertaken in 2010 include the following:

• Alcoa Foundation partnered with Rotary Club Paramaribo on a three-year project to help the village of Gujaba produce its own biodiesel from the Jatropha curcas plant so it would be self-sufficient in electrical power generation. The village’s 600 households currently are provided with energy for the evening through diesel generators that are subsidized and fueled by the national government.
• In Suriname’s remote interior region, Alcoa Foundation partnered with Medische Zending (Medical Mission) Primary Health Care Suriname to integrate cervical cancer screening and early treatment services into the organization’s 57 health centers in the interior. The three-year project, which began in 2008, was necessary since Suriname has no organized cervical cancer screening program for the interior and some ethnic groups in the region seem more likely to develop cervical cancer. By the end of 2011, all staff members at these 57 centers will be trained in cervical cancer screening and early treatment via cryotherapy, with both becoming part of the basic and primary health service provided.

Economic Impact

We recognize that Suralco represents a very significant part of the overall economic foundation for Suriname, and we take our economic responsibilities most seriously.

In 2009, Suralco accounted for roughly 16% of the export value of Suriname and 8% of Suriname's gross domestic product—more if multiplier effects are taken into account.

Suralco employed 922 full-time equivalent employees, and payroll totaled nearly US$34 million in 2010. The company also provided more than US$6.9 million in pension payments to former employees. Other economic contributions included US$41 million spent for around 1,328 contractors, miscellaneous supplies from local vendors, and medical specialists. The company also bought about US$145 million in oil from the State Oil Company and paid nearly US$10.3 million in taxes. In addition, Suralco produced about 106 megawatts of electricity for the Suriname government—roughly 85% of the electricity needs of the country's capital city of Paramaribo.

Suralco also provided approximately US$205,000 in scholarships for children of its employees, and Alcoa Foundation provided around US$257,000 in grants for improvement projects in education, the environment, and health services. These grants are focused on sustainable development in the communities of the indigenous and semi-indigenous populations through the support of clean water and the improvement of schools and education equipment.

Case Studies

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Employees & Sustainability

“Sustainability begins with you. If every individual knows and takes personal responsibility for their actions—social and environmental—I think we can have more sustainability. That is why I am happy to notice that Suralco is investing in people and providing them with tools and training. The company only has a future when everybody takes personal responsibility and is encouraged to be creative and innovative.”

Jency Kasandikromo-Kowlesar

Administrative Technician

“Sustainability means meeting the needs of the current generation while not compromising the needs of future generations. This is not easy. It is one of the challenging ways of thinking and planning. I believe that there are enough tools and training available, but they are not fully implemented in our systems. I think we are committed to getting there.”

Faid Khodabaks

Mine Engineer

“To me, sustainability means that business-related activities must be carried out in such a way that they do not harm the environment. Hence, production should take place in a sustainable way. This includes the community and the people living there should not be affected negatively by the operations. This way, we can preserve nature so that not only we can enjoy it, but our children and grandchildren can as well.”

Kenneth Rensch

Senior Environmental Technician

“If we talk about sustainability, then there are three important elements, called the “three Bs” in Dutch (Behouden, Bewaren, and Beheren): maintain, preserve, and manage. Using these three Bs in the implementation of activities will ensure a solid basis for the next generations, meaning that what we have maintained and managed efficiently shall be continued by our offspring, and thus preserved. If we use this approach in all areas of our life, then we can say that we are implementing the philosophy of sustainability.”

Robert Kasdiran

Environment, Health and Safety Area Coordinator

“If you purely look at the meaning of the word sustainability, it is namely durability and solidity. As such, sustainability means having a system or procedure in place to manage your company or organization. The necessary checkpoints should be embedded in this system for continuous improvements in not only the system but also in the implementation (for example, the Alcoa Business System’s plan-do-check-act rule). Only if you have a solid system can you manage your business or organization sustainably and finally achieve success.”

Imro Nibte

Master General Mechanic

“To explain what sustainability is, it is easier to relate sustainability with the life of, for example, a piece of equipment. With proper maintenance and use according to procedures (one-point lesson, standard work instruction, and safety), the maximum lifetime of the equipment is guaranteed.”

Marcia Amatoeloes

Electrical/Instrumentation Mechanic

Related Link

Alcoa in Suriname