From The BNAmericas siteReferences to GQC, Unigold and PRG highlighted in yellow below : "Dominican Republic president-elect Luis Abinader aims to oversee a sharp rise in mining output while ensuring local communities get a fair share of the benefits, according to a senior politician.
Miguel Pea, Abinader’s pick for an energy and mines cabinet post, laid out details of the incoming government’s priorities for the sector, which he hailed as a key source of income during the COVID-19 pandemic.
Aims include delivering major production growth and ending a permitting freeze, through overhauls of the mining code aimed at attracting foreign investment, Pea told local daily El Caribe.
The mining-friendly approach has not gone unnoticed in the sector, with industry leaders welcoming Abinader’s election victory ahead of his inauguration next week.
STABLE OPERATIONS
Mining has been a key plank of the Dominican Republic’s economy during the COVID-19 pandemic, providing a stable source of revenue as other sectors were hit by lockdown measures.
“Mining has been the most resilient [sector], and has continued producing, allowing the economy to continue generate cash flow dollars,” Pea said.
Operations at the Pueblo Viejo mine – a 60:40 JV between Barrick Gold and Newmont and Latin America’s biggest gold producer – have continued without interruption.
Barrick’s share of output was 111,000oz in Q2, down from 124,000oz in the same quarter last year, impacted by planned maintenance work.
Against the backdrop of pandemic-related global economic turmoil, supporting responsible and environmentally-friendly mining operations will be a top priority for the country.
GROWTH AIMS
The aim of the incoming administration is to double mining’s contribution to GDP in the coming years, Pea said.
This will involve lifting gold equivalent production to around 2Moz/y in 2024 from around 850,000oz/y, he added.
This aim builds on the target outlined in a draft policy by Abinader’s center-left PRM party of creating the conditions necessary to bring at least three new projects into production within a decade.
Along with Pueblo Viejo, the Dominican Republic’s main mining operations are Americano Nickel’s Falcondo nickel operations and the Cerro Maimn copper-zinc mine, where Cormidom is investing US$1bn in a mine life extension.
Achieving 2Moz/y gold equivalent production is an ambitious target.
While Abinader has already signaled plans to approve Barrick’s US$1.3bn Pueblo Viejo Expansion, this is expected to maintain output at around 800,000oz/y gold from 2022, lower than mid-point 2020 guidance of 925,000oz.
Dominican Republic mining projects listed in BNamericas’ database include GoldQuest Mining’s US$159mn Romero gold asset and Tireo property, and Unigold’s Neita gold concessions.
Precipitate Gold is also advancing exploration at the Juan de Herrera and Ponton gold projects.
REGULATORY OVERHAUL
Key steps to delivering on Abinader’s mining growth aims include an overhaul of the country’s mining code.
A priority will be to avoid a collapse of the sector, Pea said.
Under President Medina, the exploration and exploitation permitting process has been effectively stalled, with companies such a GoldQuest having faced long delays.
A previous draft mining bill was dropped after failing to win industry support.
The bill was criticized by Pea for clobbering miners with tax rates of up to 65%.
“This would make any mining investment in the country financially unviable,” he warned at the time.
Any overhaul of the Dominican Republic’s mining code is likely to be aimed at making the country more attractive to investors while ensuring operations are conducted in an environmentally-friendly and transparent manner.
Specific proposals could include bolstering local institutions by involving international bodies, such as the EITI (extractive industries transparency initiative), and creating a mining policy commission.
COMMUNITY SUPPORT
A key failing of the incumbent administration has been in delivering benefits from mining to local communities, according to Pea.
“[President Medina] tricked the communities, they feel frustrated. The government has turned its back on these communities,” he added, saying that many people are living in poor conditions in areas close to the Pueblo Viejo mine.
But the politician hinted at the need for better use of mining revenues by authorities rather than imposing additional taxes or royalties on the sector,
“You have a corporation which religiously pays its taxes, but on the other hand the government which receive those taxes dissipates them in national budgets and through all we have seen from this outgoing government,” Pea said."