The Gold Marketing Chain in Suriname - WWF, Abu Dhabi unveil ...

addition, the system was not properly ventilated because the fan was losing charge. As a result,
mercury levels in the air inside the shop ranged from 30,000 to 65,000 ng/m3. Considering that
the WHO guidelines suggest maximum level for worker’s exposure working 8h/day 25,000
ng/m3 these levels of mercury were exceedingly high. The researchers report that: “The
manager showed his concern and promised to change the exhaustion process increasing power
of the fan and reducing the size of the ducts and water tanks.” (UNEP Surimec report 2008)
Gold buyers themselves may determine the price they pay for gold offered to them. The price
paid to gold miners depends on:
The World Market Price (London bullion market)
The purity of the gold (London price is determined for 24K)
The overhead charges taken by the buyer (typically + 2%)
Royalties that need to be paid to the CBvS (1%)
The world market price of gold changes constantly. The London gold fixing, which is a generally (in
Suriname) used standard for world gold prices, occurs twice daily (see 5.11). In order to determine a
buying price for the day, the buyer calls with the exporter and the two fix a price, depending on
the LME price of that moment. The fixed price will be applied to a certain agreed weight in gold.
For example, if the world market price is 20 USD/g Au, the buyer and the exporter may fix the
price on 18 USD/g for one kilo. This procedure guarantees the buyer that he will be able to sell
the next kilo of gold he buys to the exporter for the fixed price (in this example: 18 USD/g).
Because of fluctuation in the world gold price, there is a continuous interaction between the
buyer and the exporter. This situation allows buyers and exporters to speculate by stocking gold
when the price is low and selling it when the price is high. In practice though, few companies
have sufficient reserve to stock gold for more than 2 or 3 days.
In order to reach their quota, gold buyers establish relationships with certain gold miners,
concessionaries, or businessmen, who they may tie to their business by offering a slightly better
price. The gold buyers/exporters also may help one another to reach their respective quotas.
Whether or not gold buyers may also sell gold remains unclear. According to a senior official at
the CBvS, the gold buyer’s contract of mandate (lastgevingsovereenkomst) only provides a right
to buy gold, and not to sell it to third parties other than those mentioned in the
purchase/export license. Following this line of thought, selling gold to jewelers, which occurs
regularly, is allowed by law. The consulted juridical team, however, was informed that licensed
gold buyers may also sell gold to “natural persons” (that is; any individual), including jewelers
(See Ch. 6). A representative of one of the gold buying houses said that they only sell to the
exporter and not to individuals because it is “too much hassle” and not profitable to sell to
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