In-kind flows and sale of state’s share of production and financing of mining companies

In-kind flows and sale of state’s share of production and financing of mining companies

There were no in-kind flows and sale of the state’s share of mining in 2017 reported, nor has any Government financing towards companies been reported.

Through NV1, state owned entity, the Republic of Suriname gains a 30% participating interest in the Saramacca project based on the Letter of Agreement (LOA) dated August 30, 2016, as amended on December 12, 2016 (1st Amendment LOA), and as further amended December 8, 2017 (2nd Amendment LOA) regarding the Saramacca-deal.

As far as the payments are concerned the following purchase price was agreed:

  1. Payment of the sum of USD 200,000 by RGM to the MOF/Government, upon execution of the LOA and the payment shall be considered as payment for i.e. the data package as mentioned in Section 5.1 of the Original LOA;
    – Paid in 2016 by RGM and received by NV1 in 2016.
  2. Payment of the sum of USD 10 million by RGM to the MOF /Government, upon registration of the Notarial Deed transferring the Saramacca Right of Exploration from NV1 to RGM and delivery of all other consents and documentation necessary to make such transfer binding and effective under the laws of the Republic of Suriname;
    – Paid in 2016 by RGM and received and confirmed by NV1 in 2017.
  3. Transfer of 3,125 million IMG common shares to NV 1 in 3 tranches:
    a. First tranche of 1,041,667 IMG shares 12 months after the date of transfer of the Saramacca right of exploration from NV 1 to RGM;
    – 2017: RGM has transferred this tranche in December 2017/ NV1 has confirmed this transfer.
    b. Second tranche of 1,041,667 IMG shares 24 months after the date of transfer of the Saramacca right of exploration from NV 1 to RGM; and
    c. Third and final tranche of 1,041,667 IMG shares 36 months after the date of transfer of the Saramacca right of exploration from N.V. 1 to RGM;
    d. Final payment regards the Adjustment Amount of maximum of USD 10 million subsequent to a NI 43101 compliant resource estimate for the Saramacca concession.
    – 2017: USD 5 Million was paid by RGM in 2017 and received and confirmed by RGM.

Opposed to 2017 the cash payments made by RGM in 2016 were presented as part of the reconciliation between MOF and RGM.

Subsidies

By permission of the Council of Ministers, its missive of January 13, 2015, it was approved that RGM payments conditioned under the PPA1 to MONR, could be transferred to the N.V. Energie Bedrijven Suriname (EBS/Suriname Energy Companies) for capital investment by the latter. EBS is a fully State-owned power company. Subsequently the Government has agreed that these RGM payments are ceded to EBS. Therefore, MOF recognizes it in mining revenue and has reported accordingly for SR-EITI purposes. In its publicized data, MOF also places it under subsidies to EBS. The net effect on the budget balance is neutral, but MOF presents both the credit and debit streams on a gross basis. Opposed to 2016 these cash payments by RGM are recognized in 2017 under the GFS-registration and are a part of the reconciliation between MOF and RGM.

2020-02-12T00:31:32-03:00Thursday 23 January 2020|EITI Suriname Report 2017|