Suriname 3.

0:
Natural Resource Exploitation in
the 21st Century

Sustainable Management
of Natural Resources

Daniël A. Lachman
Presentation Overview

1. Brief Overview
2. Developments over Time
3. Conditions for Strategizing
4. Highlighted Option
5. What to do next?
No. of slides: 48

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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
7/20/20
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
1. Brief Overview – cont’d

 Role for approx. 100 years

 94% of export revenue
 40% of GDP
 Bauxite: 15% of GDP, 70% of export till ‘16
 Hundreds of millions locally spent
 Thousands directly, indirectly and induced
employed
 Tremendous spin-off to basic constituents of
the economy (infrastructure, education &
research, standards, etc.)
9 Mar '19 D. Lachman
Natural
Resource exploitation in the 21st Century
6
 MOP 2006-2011

10
12
6
7
6
4
2
2

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Natural
Resource exploitation in the 21st Century
 MOP 2012-2016

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Natural 1
Resource exploitation in the 21st Century
1. Brief Overview – cont’d

 Ministerie van NH
 BWKW
 Mijnbouwwet
 Course Petroleum Engineering &
Mineral Geoscience
 Stake in SurGold
 Etc.
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Natural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

9 Mar '19 D. Lachman 10

Natural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

 Fysiek arbeid
 Weinig kennis input
 Nauwelijks opwaartse sociaal-economisch
mobiliteit
 Weinig aantrekkingskracht

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Natural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

 Margin = Price – Cost

However, for commodities:

 Price = Margin + Cost

 Price ↓ : Margin and / or Cost ↓

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Natural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

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Natural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

 Resource Curse
 Industries of Decreasing vs Increasing Returns
 Low value add
 Lack of Rules and Regulations
 Conflict
 Dutch Disease
 Growth vs Progress
 Regimes vs Niches

9 Mar '19 D. Lachman 19

Natural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

 Industries of decreasing returns vs.

increasing returns

$1000: bauxite

B
A

$1000: windows 8

When you scale up, bauxite will yield diminishing returns

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whereas country B scales up with little to no extra cost
Natural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

Source:
Lachman 2010

7/20/20
9 Mar '19 D.D.Lachman
Lachman, PhD CMRP 21
Applied Intellect - SurimepNatural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

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Natural
Resource exploitation in the 21st Century
2. Developments over Time – cont’d

 Nickerie
 Wageningen
 Marienburg
 Jarikaba
 Alliance
 Moengo
 Onverwacht, Onverdacht, La Vigilantia,
Accaribo, Simonspolder
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
3. Conditions for Strategizing –
cont’d

Resource Base
Inside-Out Perspective (Stock of Assets)

Outside-in Perspective
Activity System
(Value Chain)

Product Offering
(Value Proposition)

Markets
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
3. Conditions for Strategizing –
cont’d

 Sustainable competitive advantage

o Inherently present

o Marketable
o Difficult to copy, emulate

China’s large low-cost population, Port

of Rotterdam, Egypt: ancient artifacts
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Natural Resource exploitation in the 21st Century
3. Conditions for Strategizing –
cont’d

 Identify Sustainable Competitive

Advantage
 Use SCA to diversify economy
 Utilize SCA to further develop natural
resource sector
 Further supply chain development
 Downstream value chain
development
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
4. Highlighted Option
Orinoco ACCESSIBILITY

Amazon

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Natural
Resource exploitation in the 21st Century
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Trombetas Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
4. Highlighted Option – cont’d

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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
4. Highlighted Option – cont’d

 Havendiensten
 Scheepswerven
 Op- en overslagbedrijven
 Onderhouds- en reparatiediensten
 Toeleveranciers van goederen
 Logistieke dienstverlening
 Natural resource – supplying companies
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
 4. Highlighted Option – cont’d

 Freezones
 Inzet: diepgang rivier, luchthaven, business
environment, natuurlijke hulpbronnen
 Diverse footloose industries
 Geen Surinaams tax regiem
 Werkgelegenheid en aankopen buiten de zone wel
voor Suriname
 Minimaal 10+ hectare
 Verdere downstream verwerking van Surinaamse
natural resources (steenslag, olie, kaolien, bauxiet,
9 Mar '19 D. Lachman 41

hout, silica sand, etc.)

Natural
Resource exploitation in the 21st Century
 Entertainment

4. Highlighted Option
Processed
Foods
– cont’d
Apparel Hospitality &
Tourism
Forestry
Jewelry and
products
precious
Construction
metals
Materials
Biopharma-
ceuticals
Gold Gold
Agricultural refinement
Chemical and bullions
products
Products

Carbon
Fiber Oil & Gas Logistics Silica
Plastics Sand Glass
fibers
Machine
and Specialty
equipment Water materials
parts and Bauxite
products Rolled, Energy
Extruded Aluminum
products Silicon
Alumina Bottled based
Water solar
cells

Hydrate Ceramics
Refractory Abrasives Specialty
Water

Ceramic
9 Mar '19 D. Lachman products 1 US$ ct  sky is the42limit
Natural
Resource exploitation in the 21st Century
5. What to do next?

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Natural
Resource exploitation in the 21st Century
5. What to do next? – cont’d

 Ministerie van NH
 BWKW
 Mijnbouwwet
 Course Petroleum Engineering &
Mineral Geoscience
 Stake in SurGold
 Etc.
9 Mar '19 D. Lachman 44
Natural
Resource exploitation in the 21st Century
 5. What to do next? – cont’d

 Strategy with long-term (10+) commitment

 Alignment with education, foreign policy, ICT,
public sector reform, zoning plans, etc.
 Combined public-private-academia planning
 Create benchmark business environment
 Incentivize sectors to engage in business
clusters
 Incentivize business clusters towards
benchmarking (prod. instit. + MinFin)
Engage in new BMs for zero upfront costs
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 Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
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Natural
Resource exploitation in the 21st Century
“Every Epoch dreams its
Successor”
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Natural
48

Resource exploitation in the 21st Century