The Dominican Mining Chamber president, Luis Rafael Pellerano urged that President Leonel Fernández decide over the future of the Rosario Mining Company. The exploitation of the sulphide ore reserves are estimated at more than 100 millions tons, which could generate billions during the well over 30 years life span of the mine. In 1996, the Fernández government contracted Salomon Brothers to organize the tender whereby a foreign company would take over the exploitation. The contracting of the firm guaranteed transparency and attracted major mining companies. Sources say the process has been delayed after reportedly PLD sectors have proposed a change in the rules so that the exploitation of the mine is no longer attractive to bidding companies. Remaining interested in the bid is an Australian firm, a Canadian firm and a US firm, but these would probably only participate if the original conditions are maintained. A decision of whether to accept the proposal of the PLD sectors, whereby the state would now seek a 50% partner in the dividends, taxable by 50%, is not attractive to a company that would have to assume 100% of the investment and 100% of the risk, says lawyer Luis Rafael Pellerano. The company chosen would have to make an investment of US$700 million. Mining expert Romeo Llinás, alerted that the delays have a high cost to the country. He explained that the delays are occassioning environmental damages for RD$200 million a year. The contamination would not occur if a private company were entrusted with the project, as adequate controls would be instated. The decision as to the future of the Rosario Mining Company has been postponed since 1986. The delay is also said to cost tax payers RD$1,000 million a year, in order to maintain an operation that is deficiitary. Llinás also explained that if the government decides not to exploit the sulphides would cost more than to do so. He said to seal the mine would cost RD$4,000 to RD$5,000 million.
