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Why did mining decrease -8.3% in 2022?
The Central Bank indicates that the country's main mining company awaits permits to build a tailings dam to guarantee its expansion
The "exploitation of mines and quarries" was the only one of the 17 productive sectors and subsectors that did not register growth during the past year. On the contrary, it suffered a decrease of -8.3%, according to the most recent report from the Dominican Central Bank (BCRD).
But, to what is this fall attributed? According to the economic report of the financial institution, the reduction in the production of gold and silver is associated with the decrease in the level of mineral concentration in the extractions carried out.
In addition, there are the delays of the government authorities in granting the necessary permits and authorizations to carry out expansions, especially from the mining company Barrick Pueblo Viejo, located in the Snchez Ramrez province, which operates the main gold deposit in the country.
"A project to extend the useful life of the Pueblo Viejo mine until the year 2044 is currently underway," the BC report indicates.
He adds that the mining company is waiting for the corresponding permits from the ministries of Environment and Natural Resources and Energy and Mines, as well as the National Institute of Hydraulic Resources (Indrhi).
The granting of these permits is so that the Pueblo Viejo mining company can build a new tailings dam, essential for the expansion of its production in the years to come.
"This will allow to increase the levels of extraction, as well as the volume of production and export, which in turn would translate into higher foreign exchange earnings and tax collections," adds the explanation of the Central Bank.
less income
The fall in mining production in the country has also caused a significant reduction in the State's collections for taxes on this sector.
The General Directorate of Internal Taxes (DGII) reported that in January-November of this year the income contributed by the activities of the mining sector totaled RD$9,493.4 million, an amount much lower than the RD$22,326.5 million contributed in 2020 (year of the pandemic). .
Likewise, it is less than the RD$28,721.5 million of last year 2021. The fall is also associated with the fact that in the previous two years, the mining company Barrick Pueblo Viejo made tax advances to the Government and in 2022 it began to discount them.
Mining exports, supported mainly by a single mine (Pueblo Viejo) represent around 20% of the value of the country's total exports, and no less than 40% in nationally produced exports, when free zones are excluded.