Dominican Republic to get US$11.0B from Barrick Gold mine
Santo Domingo.- The head of Barrick Gold’s local operation affirmed Monday that during its mining contract period the country will receive an estimated US$11.0 billion, based on current gold prices.
Barrick Gold Pueblo Viejo CEO Manuel Rocha said the agreement with the Dominican Government includes a percentile distribution, for which higher gold prices benefit both parties.
He confirmed recent reports that mining has already begun, with a projected extraction of one million ounces of gold this year. The mine’s proven reserve is 25.3 million ounces of gold, 88 million ounces of silver and 455 million ounces of copper.
Interviewed by eldia.com.do, Rocha said prior to the start of the work, Barrick Pueblo Viejo made an equity investment of between US$3.6 billion and $3.8 billion, the largest in the country’s history.
He said as a publicly traded company, all of Barrick Gold’s financial information ha to be confirmable.
He affirmed that the Dominican government will receive 3.2 percent of gross production, 25 percent for income tax and 8.75 percent from net earnings.
As an example the executive cited other benefits for the country, such as the mine employees paid more than RD$900 million in income tax during construction.
Good intentions, bad information
As to criticism of the Barrick contract, Rocha said, “many people have acted with good intentions and bad information” so that the company is ready to provide all data on its financial operations.
Fix the previous miner’s damage
Rocha said Barrick Pueblo Viejo has spent US$75 million to mitigate Rosario Dominicana’s environmental damage, which he described as years of inappropriate extraction. “The first environmental remediation phase was completed in the area where the previous operation worked, which was closed without taking the required processes into account.”
He added that 11,000 direct jobs were created during the mine’s construction phase, with 1,900 direct and 10,000 indirect jobs during operations.
Category: DR News |