Unlocking Suriname's Potential with a Vertically Integrated Aluminium Industrial Complex.pdf

Harnessing Suriname's
Hidden Treasures:
Unveiling a Vertically
Integrated Aluminium
Powerhouse
A Green Energy Approach to Boosting Economic
Growth and Sustainable Development
ABSTRACT
The establishment of a vertically integrated
aluminium industrial complex in Suriname harnesses
the country's bauxite reserves and hydroelectric
potential, promising significant economic growth and
sustainable development.
Errol Jaeger

HARNESSING SURINAME'S HIDDEN TREASURES:
UNVEILING A VERTICALLY INTEGRATED ALUMINIUM
POWERHOUSE
06/02/2023
ERROL JAEGER PAGE 1 OF 14
TABLE OF CONTENTS
Abstract ..................................................................................................................................................3
Executive Summary................................................................................................................................4
background.............................................................................................................................................6
Introduction............................................................................................................................................6
Challenges ..............................................................................................................................................7
Investment Costs................................................................................................................................7
Resource Availability ..........................................................................................................................7
Energy Requirements.........................................................................................................................7
Environmental Impact........................................................................................................................7
Regulatory Compliance ......................................................................................................................8
Market Conditions..............................................................................................................................8
Technical Expertise.............................................................................................................................8
Infrastructure Requirements..............................................................................................................8
Social Impacts.....................................................................................................................................8
Benefits...................................................................................................................................................8
Economic Growth...............................................................................................................................8
Resource Optimization.......................................................................................................................9
Energy Production..............................................................................................................................9
Market Influence................................................................................................................................9
Infrastructure Development...............................................................................................................9
Technology Transfer and Skill Development......................................................................................9
Foreign Exchange Earnings.................................................................................................................9
Environmental Management .............................................................................................................9
Proposed Execution Plan........................................................................................................................9
Stage 1: Concept & Feasibility..........................................................................................................10
Gate 1: Project Initiation Approval...............................................................................................10
Stage 2: Pre-Feasibility Study & Design............................................................................................10
Gate 2: Approval of Pre-Feasibility Study.....................................................................................10
Stage 3: Definitive Feasibility Study & Detailed Design ...................................................................10
Gate 3: Approval of Definitive Feasibility Study and Design........................................................10

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Stage 4: Procurement & Construction .............................................................................................10
Gate 4: Readiness for Construction..............................................................................................10
Stage 5: Commissioning & Start-Up .................................................................................................10
Gate 5: Operational Readiness.....................................................................................................10
Stage 6: Operation & Continuous Improvement..............................................................................11
Gate 6: Project Closeout and Handover.......................................................................................11
Recommendations................................................................................................................................11
Feasibility Studies.............................................................................................................................11
Regulatory Compliance ....................................................................................................................11
Stakeholder Engagement .................................................................................................................11
Sustainable Practices........................................................................................................................11
Risk Management.............................................................................................................................11
Project Management........................................................................................................................12
Workforce Training...........................................................................................................................12
Supply Chain Management ..............................................................................................................12
Infrastructure ...................................................................................................................................12
Innovation and Technology..............................................................................................................12
Local Content....................................................................................................................................12
Contingency Planning.......................................................................................................................12
Post-Completion Evaluation.............................................................................................................12
Conclusions...........................................................................................................................................12
Resource Potential ...........................................................................................................................13
Economic Impact..............................................................................................................................13
Efficiency and Control ......................................................................................................................13
Energy Production............................................................................................................................13
Environmental Concerns ..................................................................................................................13
Project Execution..............................................................................................................................13
Community Engagement..................................................................................................................13
Long-term Outlook ...........................................................................................................................13
Appendix...............................................................................................................................................14

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ABSTRACT
Suriname, rich in bauxite reserves and hydroelectric power potential, presents an ideal setting for a
vertically integrated aluminium industrial complex. This project, designed for an annual production
capacity of 500,000 metric tonnes of smelter grade alumina (SGA), leverages conversion ratios from
bauxite to SGA and from SGA to aluminium. The complex will harness the region's hydroelectric
power, alongside natural gas consumption, to fulfill its energy requirements, including aluminium
smelting and the Bayer process.
While fostering significant economic impacts such as job creation and GDP growth, the project's
implementation necessitates careful attention to potential environmental impacts and diligent
stakeholder engagement. It's crucial that the project follows a stage-gate execution process for
systematic progress and effective risk management. A sustainable, long-term perspective, aiming for
economic viability, environmental sustainability, and social acceptability, is essential for the project's
success. With meticulous planning, effective execution, and responsible management, this initiative
could be transformative for Suriname, promoting economic growth and sustainable development.

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EXECUTIVE SUMMARY
Unlocking Suriname's Potential with a Vertically Integrated Aluminium Industrial Complex
Suriname, endowed with substantial bauxite reserves and untapped hydroelectric power potential, is
a prime location for developing a vertically integrated aluminium industrial complex. This project,
aimed at an annual production capacity of 500,000 metric tonnes of smelter grade alumina (SGA),
could bring transformative economic growth, job creation, and infrastructure development to the
country. Yet, the intricate nature of this operation demands meticulous planning, systematic
execution, and careful consideration of potential environmental impacts.
Design and Operations
The aluminium production complex is envisioned to encompass the entire production chain - from
mining bauxite to refining alumina, and finally, smelting aluminium. This comprehensive approach
offers significant control over the production process, improving efficiency and cost-effectiveness. A
core feature of this project is the proposed use of the country's hydroelectric potential, along with
imported natural gas, to meet its substantial energy needs, which include the Bayer process for
alumina production and the aluminium smelting process.
Environmental and Social Implications
While such an industrial complex stands to offer numerous economic benefits, it also poses potential
environmental challenges. It is vital that comprehensive environmental assessments are carried out,
with a strong focus on minimizing impacts and implementing best-practice sustainable strategies. The
project should strive to achieve high environmental standards, ensuring it contributes positively to
Suriname's sustainability goals.
Moreover, proactive engagement with local communities and stakeholders is critical. The project
should aim to bring tangible benefits to the local populace and work to minimize any disruptions. The
establishment of positive, long-term relationships with local communities and key stakeholders will
contribute to the project's acceptability and success.
Execution Strategy and Long-term Outlook
For effective execution, a stage-gate process is recommended. This systematic approach ensures
phased progression, diligent risk management, and optimal resource allocation, crucial for a project
of this magnitude. Each stage would focus on specific objectives, followed by a review gate, allowing
for thorough evaluation and informed decision-making before moving on to the next stage.
Additionally, a long-term, sustainable perspective is crucial. Given the project's scale and potential
impacts, ensuring its economic viability, environmental sustainability, and social acceptability is
paramount. It's essential to foresee and manage risks proactively, ensuring the project's resilience
and longevity.

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06/02/2023
Dual Energy Solutions
The proposed project can be powered in two potential ways: one option is to generate steam and
power from a 535 MW hydro power facility, importing natural gas for stationary flash calciners.
Alternatively, a 465 MW hydro dam can generate power, with a Combined Cycle Power Plant (CCPP)
or co-generation combined heat and power plant generating steam and additional power, again
importing natural gas for the calciners.
Conclusion
In conclusion, the establishment of a vertically integrated aluminium industrial complex in Suriname
offers considerable potential benefits. By leveraging the country's bauxite reserves and hydroelectric
potential, this project could significantly contribute to economic growth, employment, and
sustainable development. Successful implementation will require careful planning, diligent execution,
and responsible environmental and social management. With these components in place, this project
could position Suriname as a significant player in the global aluminium industry, bringing substantial
benefits to the nation and its people.

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BACKGROUND
The South American country of Suriname is home to extensive reserves of bauxite found in the
Bakhuis mountains, located in the southwestern region. The estimated quantity of this bauxite
resource is at least 500 million metric tonnes. This bauxite contains approximately 38.5% available
alumina (AA) and 2.0% reactive silica (RS). The available alumina is in the form of gibbsite, chemically
represented as Al(OH)3, while the reactive silica exists as kaolinite, expressed as Al2Si2O5(OH)4.
Historical studies dating back to the early 1960s indicate that this southwestern region also boasts
significant hydropower potential, in close proximity to the Bakhuis mountains. The Kabalebo
hydropower project's generation capacity, contingent on the specifics of the project, could reach an
impressive 800 megawatts.
The purpose of this scoping study is to show the framework for a vertically integrated aluminium
industrial complex. This facility would leverage Suriname's vast bauxite resources and the region's
substantial hydropower potential. The objective is to tap into these dual resources - the bauxite
reserves and the hydropower potential - located in the southwestern part of Suriname, to facilitate
the effective and efficient production of aluminium.
INTRODUCTION
This document presents an overview of a comprehensive aluminium production facility, which is
designed to yield 500,000 metric tonnes of smelter grade alumina (SGA) per year. The conversion
processes are determined by the following ratios:
• 2.75 tonnes of dry bauxite is converted into 1 tonne of SGA.
• 1.93 tonnes of SGA is required to produce 1 tonne of aluminium.
The aluminium smelting process requires 13.5 megawatt-hours of energy per tonne of aluminium.
Additionally, the Bayer process, essential to aluminium production, utilises 1.5 tonnes of steam at 10
bar absolute pressure and consumes 200 kilowatt-hours per tonne of SGA. Stationary flash calciners,
powered by natural gas, require 3.35 gigajoules of energy per tonne of SGA.
At the bauxite mine, each tonne of dry bauxite requires 1.065 litres of diesel and 50 kilowatt-hours of
energy for the initial and subsequent crushing and grinding stages. The bauxite is then subjected to a
beneficiation process, primarily involving a water-based wash to reduce kaolinite content. An
estimated 10 kilowatt-hours of energy per tonne of dry bauxite is required for hydraulic transport.
Annually, this extensive aluminium facility yields:
• 1,375,000 metric tonnes of dry bauxite
• 500,000 metric tonnes of smelter grade alumina (SGA)
• 259,000 metric tonnes of aluminium metal
The complex also produces 95 tonnes of saturated steam per hour at 10 bar absolute pressure,
requiring 70.3 megawatts of electrical power. The total power demand of the facility is 535

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megawatts, inclusive of the electric boiler's consumption, which could potentially be sourced from
regional hydropower.
Alternatively, the complex can consume 81.3 million standard cubic feet of natural gas per day to
generate 535 megawatts of electrical power in a Combined Cycle Power Plant (CCPP). In addition,
around 4.9 MMSCFD of natural gas is required to produce 1,515 tonnes of SGA daily using stationary
flash calciners. If local gas resources are not available, the natural gas can be imported in the form of
Liquefied Natural Gas (LNG).
The complex includes a Combined Heat and Power (CHP) facility, which generates 95 tonnes of steam
per hour at 10 bar absolute pressure and 465 megawatts of power. This power is allocated between
the bauxite mine (2.2%), refinery (2.7%), and aluminium smelter (95.1%).
In summary, the complex can utilize two energy solutions:
A. Generate steam and power using 535 MW of hydropower, with an additional requirement of
4.9 MMSCFD of natural gas for the stationary flash calciners, which can be imported as LNG.
B. Utilize a 465 MW hydro dam for power generation, and produce steam and power through a
CCPP or co-generation Combined Heat and Power plant, consuming around 12.0 million SCFD
of natural gas. An added 4.9 MMSCFD will be needed for the stationary flash calciners, which
can also be imported as LNG.
CHALLENGES
Setting up a vertically integrated aluminium industrial complex presents a number of challenges:
Investment Costs
The establishment of such a complex requires a substantial financial investment. This includes capital
for the construction of the facility, procurement of machinery and equipment, land acquisition,
infrastructure development, and the cost of regulatory compliance.
Resource Availability
Bauxite mining, the first step in aluminium production, is heavily dependent on the availability of
bauxite deposits. The quality of these deposits, their size, and the ease of extraction can significantly
impact the profitability of the complex.
Energy Requirements
The aluminium production process is highly energy-intensive. Sufficient and consistent access to
affordable energy sources is crucial, which may be challenging in some regions. If these energy
requirements are not met, production costs can rise, impacting profitability.
Environmental Impact
The processes involved in aluminium production have significant environmental impacts, including
land degradation from mining, water pollution from the Bayer process, and air pollution from

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smelting. Additionally, the industry's high energy consumption contributes to greenhouse gas
emissions. Addressing these issues requires investment in environmentally friendly technologies and
practices, adding to the cost and complexity of the project.
Regulatory Compliance
The aluminium industry is subject to numerous local and international regulations regarding
environmental impact, worker safety, and product quality. Compliance with these regulations can be
complex and costly.
Market Conditions
Fluctuating global aluminium prices, impacted by supply and demand dynamics, can significantly
affect the profitability of the operation. Also, increased competition in the market can drive down
prices.
Technical Expertise
Operating a vertically integrated aluminium complex requires a skilled workforce trained in various
disciplines, including mining, chemical engineering, metallurgy, and power generation. Acquiring and
retaining this talent can be challenging.
Infrastructure Requirements
Efficient operation of a vertically integrated complex requires robust infrastructure, such as
transportation networks for moving raw materials and finished products, and utilities infrastructure
for energy, water, and waste management.
Social Impacts
The operations of a large industrial complex can have significant social impacts, including
displacement of local communities, impacts on local economies, and health and safety risks for
workers and nearby communities. Managing these social impacts requires careful planning and
communication.
Overcoming these challenges often requires a combination of strategic planning, technological
innovation, financial investment, skilled management, and strong relationships with stakeholders,
including regulators, local communities, and the workforce.
BENEFITS
Establishing a vertically integrated aluminium industrial complex can bring numerous potential
benefits:
Economic Growth
Such a large-scale industrial project can significantly contribute to the economy, creating direct and
indirect employment opportunities, stimulating local business growth, and contributing to the
national GDP.

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Resource Optimization
Vertically integrated operations can lead to more efficient use of resources, reducing waste and costs.
This is because the supply chain is fully controlled, from the extraction of bauxite to the production
of aluminium.
Energy Production
If the project is paired with a hydroelectric power plant, as suggested, it can contribute to the region's
energy production. This not only provides the energy needed for aluminium production but could also
supply excess energy to the local grid.
Market Influence
A large new player in the aluminium market can influence market dynamics. Given its control over the
full supply chain, the project could potentially offer competitive pricing and support more stable
operations, even under fluctuating market conditions.
Infrastructure Development
The project could stimulate improvements in local infrastructure, such as roads, utilities, and services,
to support the industrial complex. This could bring added benefits to the local community and other
businesses.
Technology Transfer and Skill Development
The project could lead to the introduction of advanced technologies and practices in the region. It can
also provide opportunities for skill development and professional growth for the local workforce.
Foreign Exchange Earnings
If the produced aluminium is exported, it could result in significant foreign exchange earnings for the
country.
Environmental Management
With proper environmental management practices, the project could set a high standard for industrial
environmental responsibility in the region. This could include practices like waste management,
emission control, land reclamation, and possibly even carbon capture and storage.
However, it's important to note that realizing these benefits will require careful planning, efficient
execution, effective management, and diligent environmental and social impact mitigation.
PROPOSED EXECUTION PLAN
The execution of a vertically integrated aluminium industrial complex can be effectively managed
using a stage gate process. Here's a proposed outline:

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Stage 1: Concept & Feasibility
Gate 1: Project Initiation Approval
• Establish the project scope, objectives, and feasibility.
• Initial resource estimation and allocation.
• Initial risk identification and mitigation strategies.
• Obtain approval to move to the next stage.
Stage 2: Pre-Feasibility Study & Design
Gate 2: Approval of Pre-Feasibility Study
• Detailed feasibility study, including market, technical, and economic aspects.
• Preliminary design of the complex.
• Detailed risk assessment and mitigation strategies.
• Secure land and environmental approvals.
Stage 3: Definitive Feasibility Study & Detailed Design
Gate 3: Approval of Definitive Feasibility Study and Design
• Finalize the design of the complex.
• Finalize business case, including detailed capital and operating cost estimation.
• Secure financing and regulatory approvals.
• Finalize project management and execution plan, including procurement strategy.
Stage 4: Procurement & Construction
Gate 4: Readiness for Construction
• Contract with suppliers and contractors.
• Develop a detailed construction schedule.
• Begin construction while ensuring compliance with safety and environmental standards.
• Monitor project progress, costs, and risks.
Stage 5: Commissioning & Start-Up
Gate 5: Operational Readiness
• Test systems and equipment, and correct any issues.

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• Train the workforce and establish operating procedures.
• Gradually ramp up production while monitoring performance.
Stage 6: Operation & Continuous Improvement
Gate 6: Project Closeout and Handover
• Finalize project documentation and conduct a post-project review.
• Formally close the project and hand over to the operational team.
• Implement a continuous improvement program to optimize operation and reduce costs.
At each gate, progress is reviewed by a steering committee or a similar decision-making body. If the
project is not meeting its objectives or if risks are too high, the committee can decide to stop the
project, saving resources and reducing potential losses.
RECOMMENDATIONS
To ensure the successful execution of this vertically integrated aluminium industrial complex, the
following recommendations should be considered:
Feasibility Studies
Conduct thorough feasibility studies, including technical, economic, environmental, and social
aspects. Understand the full implications of the project, including potential impacts on local
communities and ecosystems.
Regulatory Compliance
Ensure the project complies with all local and national regulations, as well as international standards.
This includes environmental, health and safety, and labor regulations.
Stakeholder Engagement
Engage with all relevant stakeholders from the earliest stages of the project, including local
communities, government bodies, investors, and non-governmental organizations. This can help to
identify potential issues early and build a positive relationship with the community.
Sustainable Practices
Incorporate sustainable and environmentally friendly practices into the project design. Consider the
potential for renewable energy sources, water conservation, waste reduction, and emission control.
Risk Management
Establish a robust risk management process to identify and mitigate potential risks. This should
include risks related to technical issues, market fluctuations, regulatory changes, and social and
environmental impacts.

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Project Management
Use effective project management techniques, including a stage-gate process, to ensure the project
stays on schedule and within budget. Regularly monitor progress and take corrective action if needed.
Workforce Training
Invest in training and development for the workforce. This can help to ensure safety standards are
met and improve the efficiency and quality of operations.
Supply Chain Management
Establish reliable supply chains for all necessary materials and equipment. Consider potential issues
such as transportation logistics and supplier reliability.
Infrastructure
Ensure that the necessary infrastructure is in place to support the project. This includes transportation
networks, utilities, and facilities for workers.
Innovation and Technology
Use advanced technology and innovative practices to improve efficiency and reduce environmental
impact. This could include automation, digital technologies, and advanced materials and processes.
Local Content
Utilize local content as much as possible, including local labor, materials, and services. This can help
to support the local economy and build community support for the project.
Contingency Planning
Develop contingency plans for potential issues such as delays, cost overruns, equipment failures, and
natural disasters. This can help to ensure the project can adapt and recover from unexpected events.
Post-Completion Evaluation
After the project is completed, conduct a post-completion evaluation to learn from the experience
and improve future projects. This should include feedback from all stakeholders and consider all
aspects of the project.
Remember, the key to successful project execution is careful planning, clear communication, effective
management, and diligent monitoring and control.
CONCLUSIONS
Concluding this overview, a vertically integrated aluminium industrial complex holds significant
potential for economic and infrastructural development. However, successful implementation
requires rigorous planning, analysis, and engagement with relevant stakeholders. Below are the key
takeaways:

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06/02/2023
Resource Potential
Suriname's vast bauxite reserves and hydroelectric power potential offer an excellent opportunity to
establish a vertically integrated aluminium industrial complex.
Economic Impact
Such a project would have considerable economic implications, fostering job creation, stimulating
local business growth, and potentially contributing significantly to the nation's GDP.
Efficiency and Control
A vertically integrated operation would enable greater efficiency and control over the production
process, leading to cost reductions and improved product quality.
Energy Production
Harnessing hydroelectric power for the complex not only caters to the project's energy requirements
but could also contribute to the region's power grid, promoting sustainable energy use.
Environmental Concerns
While there are significant benefits, potential environmental impacts should be diligently assessed
and managed. The project should aim to adhere to high environmental standards and implement
sustainable practices.
Project Execution
A stage-gate execution process is recommended for the project to ensure systematic progress,
effective risk management, and optimal resource allocation.
Community Engagement
Active engagement with local communities and stakeholders is critical. The project should strive to
bring tangible benefits to the local communities, minimize disruption, and foster long-term positive
relationships.
Long-term Outlook
A long-term, sustainable perspective is crucial. Ensuring economic viability, environmental
sustainability, and social acceptability is key to the project's success and longevity.
In conclusion, with meticulous planning, effective execution, and responsible management, the
establishment of a vertically integrated aluminium industrial complex could be a transformative
project for Suriname, promoting economic growth and sustainable development.

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APPENDIX
The Bayer process, founded by Karl Josef Bayer, stands as the foremost global method for refining
bauxite ore into alumina (aluminium oxide), a pivotal step in aluminium metal production.
This process commences with the 'Preparation' phase, during which bauxite ore undergoes crushing
and milling to achieve a fine particle consistency. This milled bauxite then combines with a sodium
hydroxide (caustic soda) solution in the 'Digestion' phase. The mixture is heated in a high-pressure
digester, catalyzing a reaction between the bauxite's alumina and caustic soda. This reaction forms a
sodium aluminate solution, separating the alumina from impurities, primarily iron oxides and silica.
Next is the 'Clarification' phase, in which the mixture is transported to expansive settling tanks. Here,
the impurities, often termed 'red mud,' gradually sink to the tanks' bottom, while the resulting
clarified sodium aluminate solution is carefully decanted.
The process advances to the 'Precipitation' phase, where the solution is cooled, triggering the
precipitation of aluminium hydroxide. The precipitation process is expedited by seeding the solution
with aluminium hydroxide crystals. Lastly, during 'Calcination,' the precipitated aluminium hydroxide
is heated in rotary kilns to eliminate water, leaving behind pure alumina.
A pivotal element in the Bayer process is caustic soda, which acts as a solvent to extract alumina from
bauxite ore. Its solution dissolves the alumina, facilitating the separation of alumina from the bauxite's
remaining components. This step significantly influences the overall efficiency of alumina extraction.
However, it's essential to note that reactive silica in the bauxite also consumes caustic soda, resulting
in system losses and subsequently diminishing the process's overall efficiency. Hence, effective
management and optimization of caustic soda consumption is a significant consideration in operating
the Bayer process.
The proposed SGA (Smelter Grade Alumina) refinery is projected to consume roughly 0.060 t NaOH/t
SGA or 30,000 t NaOH annually, translating to an import cost of approximately $13.5 million per year.
Incorporating a chloralkaline plant in the vertically integrated aluminium industrial complex could
realize substantial operational cost savings and should be considered in future studies.

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