Amazone Resources obtains right for abstraction and export of
Paramaribo July 1, 2014
We have obtained the right to abstract and export fresh water from Surinamese rivers. This right is set out in a Presidential Decree (PD) of 16 March 2012 and was thereafter specified by a Memorandum of Implementation of 17 June 2014.
A Presidential Decree was necessary because Suriname lacks specific laws for the commercial exploitation of surface water. The granted right – for forty years of exploration and exploitation – obligates us to pay royalties and legally established tax to the Government. During the first five years of operations (until 2017) Amazon Resources will pay 15 percent on the earned revenues in royalties. In the five years thereafter this increases to 23 percent, while in the eleventh to fifteenth year this rises to 30 percent of earned revenues. For the last 25 years royalties will climb to a rate of 38 percent.
The arrangements project amongst others an ESIA-research (Environmental and Social Impact Assessment). We will be allowed to abstract and export fresh water commercially, only when the Surinamese authorities approve the ESIA-report.
As part of our social commitments to the people of Suriname we have also agreed to set up a fund, which will receive 10% of our net profit bookings to use for a social developmental programs around the country.
Update 2016
In 2016, the Government announced they would start to draw several water laws. These are expected to be ready for public hearing in the National Assembly by the second quarter of 2017. It is expected that extraction of fresh water from the Surinamese rivers, as a new sector, will also be included. We hereby assure that Amazone Resources will adhere to any legislation that comes into effect, as was agreed upon in the Memorandum of Implementation (2014).