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

Iam Gold pays royalty to the Suriname government via the CBvS. 2.25 Percent of exported gold
is placed at the disposal of the Suriname state after refining in the Royal Canadian Mint. In
other words; the royalty payments of IAM gold are based on the pure gold value of the export,
are paid in 24K gold and are stored in Canada. The state can access this gold any time, or ask
the Royal Canadian Mint to sell it for them.
When the price of gold rises to more than USD 425,= /ounce, IAM Gold pays “Extraordinary
Royalties” (Buitengewone Royalty) of 6,5% in money over the amount above this price 34 . For
example, now the gold price has risen to 1,200 USD/ounce, Iam Gold pays additional royalties
of USD 50.38/ounce (6.5 %*USD 775).
Another tax (0.25%) is paid in gold and deposited in the REMIF foundation. This arrangement is
part of an agreement between the government and Iam Gold regarding the return of profits to
the sector. Other duties and taxes are related to the exploitation and daily operations and paid
in money, such as concession duties, exploration rights and exploitation rights. In addition, Iam
Gold pays income tax (inkomstenbelasting) 35 , which currently is 36 percent of net profit, and 25
percent tax on wages (loonbelasting).
The Gross Rosebel mine employs 1260 people and has a projected mine life of 12 years (until
2022). However, the exploration potential is still high and it is expected that new mineral
reserves will be added in the future
5.11 Other foreign companies and institutions
London bullion market
The London bullion market is a wholesale over‐the‐counter market for the trading of gold and
silver. Trading is conducted amongst members of the London Bullion Market Association
(LBMA), loosely overseen by the Bank of England. Most of the members are major international
banks or bullion dealers and refiners.
At the London bullion market price of gold is determined through gold fixing by the members of
the London Gold Market Fixing Ltd.. It is designed to fix a price for settling contracts between
members of the London bullion market, but in practice the price set at London is used as a
benchmark for pricing the majority of gold products and derivatives throughout the world's
34
See: Government of Suriname, 2003. Overeenkomst inzake wijziging en aanvulling van de
delfstoffenovereenkomst van 2 april 1994
35
The first few years of operations the company could write off its investments and, as a result, had no net profits
39