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DR looking to increase benefits from mines

The first draft of the National Mining Bill, now in public comments phase at the Ministry of Energy and Mines, proposes to establish a new series of benefits for the Dominican state on the exploitation of its mines, including a government profit sharing provision that ranges from 40% to 60%. The bill creates the concept of Participation in the State Mining Income that seeks to improve government earnings from mining.

According to the El Dia newspaper, this new concept will function inside the framework of a new tax regime that is described in the first draft of the legislation.

The bill draft establishes that for mining companies or refineries the Participation in the State Mining Income can in no case be less than 40% of the total mining income at each concession. The proposal also talks about state participation that might vary from 44% to as much as 60% depending on markets and other circumstances, in the case of exceptionally favorable prices, for example.

The proposal that is currently at the Presidential Ministry, also establishes the obligatory quarterly publication of the financial statements of the mining enterprises as part of a transparency program.

Illicit mining is also covered and can be penalized with as much as a 15-year suspension of any licenses or permits, plus indemnities.

The bill draft proposes a maximum duration of a mining concession be 25 years. In the current Mining Law 146 – 71 mining concessions can be granted for 100 years.

Source: DR1, Mem.gob

Oct 11, 2017

Category: DR News |

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Last updated December 17, 2017 at 1:23 AM
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