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Government to get US$350M from Barrick Gold pact before year end

Santo Domingo.- Economist Jose Luis de Ramon on Wednesday said the government will get at least US$350 million in revenue before year end from the amended contract with Barrick Gold for the Pueblo Viejo (central) mine.

“The renegotiation of the agreement with Barrick Gold to exploit the gold mine at Pueblo Viejo is the largest deal that has been done in Dominican Republic’s history,” he said.

He stressed that now, instead of the US$377 million the previous contract called for, the country will receive US$2.2 billion in four years.

He said the negotiation was important because the government will receive funds immediately, in addition to Barrick recovering its investment in 10 years, starting from 2014. “Barrick Gold is a company that as of today becomes a partner of the Dominican State.”

“The fact is that this mine (Pueblo Viejo) can produce gold for 35 years, so far, therefore, the expectation is that there are more deposits. The economic percentage which the Dominican Republic will receive depends on gold’s price in the market,” said the economist and government adviser, interviewed on La Nota (95.7 FM).

A contract clause stipulates that regardless of gold’s price fluctuation or increased costs, the Dominican government is guaranteed a minimum tax on its sale.

Source: DT

Category: DR News |

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Last updated March 29, 2017 at 11:04 PM
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