⛏️ Deaths at illegal gold mining operation

Happy Monday!

This week we cover the disaster at an illegal gold mine, an agreement between the unions and the government, and recent inflation statistics

Death of miners at illegal operation

• Fourteen bodies of gold miners have been recovered from the collapsed illegal gold mine on the Zijin gold company property in the Brokopondo district.

• President Chan Santokhi has announced a major operation to provide aid, with a cluster of ministers appointed for coordination, including ministers of Natural Resources, Defense, Justice and Police, Regional Development & Sport, and Finance & Planning. The Public Prosecution Service is responsible for central coordination.

• A technical team is conducting rescue work, body recovery, and forensic investigations, and an investigation team led by the Attorney General will thoroughly examine the incident.

• Options are being explored for requesting assistance from abroad, with Brazil being considered. Intensive consultation with the traditional authority is planned, and aftercare measures will be implemented.

• The government is shocked by the incident and offers condolences to the relatives. Measures are being taken to properly manage the situation, and resulted in declaring two days of national mourning.

• The incident occurred in an area where a gold vein had previously been discovered, and despite security measures, an illegal tunnel collapsed, burying many people.

Agreement between unions and the government

• The Council of Trade Union Confederations in Suriname (Ravaksur), comprising trade union federations CLO, C-47, PWO, OSAV, and FAL, emphasizes the persistent socio-economic challenges faced by society in recent years.

• Ravaksur has been engaged in discussions with the government since the initiation of the Recovery Plan, urging measures that don't disproportionately burden workers and suggesting the broadest shoulders bear the heaviest burden of economic measures.

• Ravaksur supports a social program for the poorest in society, acknowledging the necessity of adjusting benefits due to the sharp decline in the purchasing power of the Surinamese dollar (SRD) caused by devaluations and high inflation since 2020.

• Ravaksur, BvL, ALS, and FOLS have reached an agreement with the government, leading to several changes in tax policies.

• The tax-free income amount will increase from SRD 7,500 to SRD 9,000 starting in January, with an expansion of tax brackets.

• An additional SRD 1,000 net will be added to the initial SRD 2,500 purchasing power increase, resulting in a total increase of SRD 3,500.

• The agreement, valid until June 2024, includes a quarterly evaluation process.

• The tax brackets have been significantly expanded, with the 8% bracket increasing from SRD 946.40 to SRD 3,500, the 18% bracket expanding from SRD 659.75 to SRD 3,500, and the 28% bracket increasing from SRD 910 to SRD 3,500.

• The fixed deduction has been raised from SRD 100 to SRD 400, providing taxpayers with more disposable income.

Inflation cools down in Suriname

• Inflation in Suriname has been on a downward trend in recent months, despite rising prices.

• According to the General Bureau of Statistics (ABS), inflation last year was 42.9%.

• Economist Gerard Lau, analyzing with Marijn van Schaaik and Anthony Caram, notes that inflation from January to October is 26.9%.

• The average inflation rate from January to October is 2.7%, indicating a monthly increase of 2.7% on average.

• The average inflation rate for the 3rd quarter (July to September) is 1.5% per month.

• Projecting forward, an average inflation rate of 1.5% in the 4th quarter suggests a total annual inflation of 30.8% for 2023.

• Comparing December 2023 to December 2022 with the same 1.5% inflation rate, the projection is a rate of 36.7%.

• ABS reported an inflation rate of 60.8% in 2020, followed by 60.7% in the next year and 54.6% last year.

• In October 2023, consumer prices increased by an average of 1.0% compared to September.