SITUATION ANALYSIS OF THE SMALL-SCALE GOLD ... - WWF

Chapter V
SMALL SCALE MINING AND THE STATE
This chapter reviews three key issues that need to be addressed in order to create
an enabling environment for SSM: policy, legislation and institutional
development. The first section of this chapter reviews the national SSGM policy of
Suriname. The absence of an integrated gold mining policy has been noted, and
the causes for this absence are reviewed. Suggestions are made on how to initiate
an interactive SSM policy development cycle that will create enabling conditions
for legal and administrative reform that are required to create a viable subsector.
The absence of a SSGM policy has stymied the legislative drafting initiatives.
Three attempts have been made to create draft laws, but none of these three
attempts have rallied a broad support base. Moreover, recent developments such
as the “concession leasing enterprises” and “larger SSM operations” have been
noted in the explanatory memorandum of the latest draft law, but the draft law
contains no provisions to define and regulate these developments in the field. So it
is critical that these areas be developed further before the new draft law is
debated and approved. It is suggested that functional legislation be developed on
the basis of the results of an interactive policy development effort and reliable
information from the field.
It is argued that if the new laws and regulations do not reflect realities in the
field, the new regulatory efforts will fail. It is critical, therefore, that any new
legislation will reflect the dynamic nature of the sub-sector and which anticipates
the required institutional framework needed to bring the sub-sector under control.
Practical and feasible regulations are not enough, a strong institution is needed
to monitor and control the sub-sector. Sustainability of the institutional effort can
only be guaranteed if revenues are channeled back on a regular basis from the
sub-sector into the administrative infrastructure. This is also the only way to
ensure that the State receives a fair take from the sub-sector.
5.1 The current gold mining policy
In the Policy Note of 2001-2005 the government has produced a number of statements
regarding the gold mining sector. 17 This note indicates that in the year preceding 2001
US$ 150 million was invested in the gold mining sector and that this is a significant
indication of the export potential of the sector, especially in the context of favorable
world market prices. The policy note stipulates that “one of the priorities of the
government is to create a favorable investment climate for both large- and small scale
mining project funded by international and national investors. “ Moreover, it is the
17 Summarized from the report of the SPS (SPS; National Planning Foundation) entitled “Developments in
the gold sector from the 1990s onwards” (2002).
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