The impact of mining taxation revenues on government finances is evident this year. As reported by Analytica, Barrick Pueblo Viejo Dominicana mine contributed US$1,208.7 million to last year’s GDP. The impact of the mine on total exports in 2013 was US$1,214 million. The company reports making an investment of US$4.47 billion during the 2009 to 2012 period. The report was presented in an event headed by Barrick president, Manuel Rocha, who highlighted that mining is profitable and the benefits were not only for the company but also for the Dominican Republic. The company sponsored the report. The report also shows that the company made a 2% direct and indirect impact on growth in 2013, accounting for 50% of total growth. It reports net income of US$814 million in hard currency. It says that as a result of the operation, 236 new companies were created in the local economy in Sanchez Ramirez province. It also claims that more than 11,000 direct and indirect jobs were created because of the mining operation.
Barrick Pueblo Viejo says that RD$12,412 million in tax was paid in the first year of operation, accounting for 4.4% of the total internal revenues for the period.
The Medina administration has been supporting increased mining operations in the country, motivated by the short-term taxation benefits.
http://www.dgm.gov.do/Noticias/Dominican_Republic_Focus_Redwood_MJ140124.pdf