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New pact with Barrick Gold almost ready, Dominican official says

Santo Domingo.- Economy minister Temistocles Montas on Wednesday said the new agreement with the miner Barrick Gold Corp. is almost ready, and that everything will defined once the legal representatives from each side conclude the talks.

Speaking to reporters in the National Palace, the official said however Presidency chief of staff Gustavo Montalvo is the one who can provide information on the negotiations.

In early May Barrick agreed to renegotiate the contract for the gold mine at Pueblo Viejo, Cotui (central), to immediately start paying taxes and royalties to the Dominican state and not wait until it recovers its total investment and for profits reach 10%.

Still, Congress as well as Barrick Gold must approve the amendment, via which the country will receive some US$2.2 billion from 2013 to 2016, while the original pact provided only US$377.8 million during that period.

The new agreement includes a “minimum tax” levied according to gold prices, and also raises government revenue by US$1.5 billion during the contract’s 25-year period.

Source: DT

Category: DR News |

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Last updated March 29, 2017 at 12:43 AM
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