Good article.Will DomReps Abinader oversee a new wave of mining growth? Bnamericas Published: Tuesday, July 07, 2020 Open pit mining Gold Politics Types of mining Elections Will DomReps Abinader oversee a new wave of mining growth? Dominican Republic president-elect in-waiting Luis Abinader aims to establish the country as a mining-friendly jurisdiction and secure a new wave of growth in the sector. Abinader, a former business leader and co-founder of the center-left PRM party, claimed victory in the first round of elections on Sunday, on a progressive agenda focusing on healthcare reform and support for small businesses. He is not expected to need a second round on July 26. On the mining front, Abinader has indicated plans to get the investment ball rolling following years in which uncertainty and a lack of policy clarity have weighed heavily on the sector. Mining could play an important role in the countrys post-pandemic recovery, with higher gold prices expected to deliver a substantial tax windfall. PUEBLO VIEJO EXPANSION In a key decision for the mining sector, Abinader has already indicated he will approve Barrick Golds US$1.30bn expansion at Pueblo Viejo Latin Americas biggest gold mine. Barrick and 40% JV partner Newmont are planning to expand the processing plant and tailings facility, in a move which will extend operations beyond 2040. Output will be maintained at around 800,000oz/y after 2022 under the proposals. Barrick has pushed hard to promote the economic and social benefits of the expansion, which will be particularly important as the Dominican Republic seeks to bounce back from the COVID-19 pandemic and limit the size of a recession. S&P expects a 2% GDP contraction in 2020 still one of the strongest figures in the region, down from pre-pandemic estimates of around 5% growth. The expansion will secure thousands of jobs at Pueblo Viejo the countrys biggest source of tax revenue. Strong gold prices currently in the US$1,700-1,800/oz range could further boost tax receipts. OTHER PROJECTS Abinader also has his sights set on delivering a wider expansion of the countrys mining sector. His main priority, as set out in a draft policy, is on creating the conditions necessary to bring at least three new projects into production within a decade. Top contenders include GoldQuest Minings Romero gold project, which has been held back by permitting delays something the president-elect will be keen to overcome. Earlier-stage projects which could advance to production include Precipitate Golds Pueblo Grande, in which Barrick has an option to earn up to a 70% interest, and Unigolds Neita gold concessions. A less likely possibility is Americano Nickels Loma Miranda project, which has been held back by environmental concerns. POLICY PROPOSALS How will Abinader transform the Dominican Republic into an attractive mining jurisdiction? A key step will be ending years of policy uncertainty. Mining projects have been held back by the lack of clearly defined policies under the current administration, according to the PRM draft policy. A proposed overhaul of concession rules was annulled by the constitutional court in 2018. Previous attempts to reform the mining code have failed to progress, with miners paying a diverse mix of taxes and royalties which vary by company, according to the Extractive Industries Transparency Initiative (EITI). The draft policy calls for new measures to incentivize exploration and support development projects and win over international investors, while ensuring operations benefit local communities. Special attention must be given to small and medium-sized miners and artisanal producers, the document says. Current and proposed legislation will be revised to ensure it serves as an instrument to attract investment, and is consistent with global standards and best practices, it adds. The proposals also include promoting mining clusters and strategic mining districts and delivering 5% of the net benefits of mining operations to local governments, as established in existing laws. If his victory is confirmed as expected, Abinader will take office August 16.