President Danilo Medina needs to ratify the exploitation green light awarded by the Ministry of Energy and Mines for the exploitation of an underground gold mine (Romero Project) in San Juan de la Maguana province in the southwest. GoldQuest has said the mine has a seven-year exploitation potential, but the agreement contract with the government is for 75 years, according to a GoldQuest press release.
The deal calls for a Tax Stability Agreement that provides tax incentives for the project for a minimum of 25 years protected under the current Mining Law. The agreement also calls for the government to receive “economic benefits at forty percent (40%), taking into account the Royalty, Income Tax and Municipal Contributions, and a Voluntary Contribution that the company has committed to pay to the state, if warranted, under a formula.”
Alicia Ortega investigative news program aired an around one-hour four part video with presentations by GoldQuest representatives Felix Mercedes and Julio Espaillat and several local people speaking up for the San Juan de la Maguana province. The program addresses concerns such as use of water sources, imported labor, and potential damage to health and agriculture. The province’s major source of income is farming.
The Ministry of Energy and Mines says that the company has met all the legal, economic and technical conditions, and the project is considered to be in the national interest. The Ministry of Energy and Mines says that the company has provided a sworn statement that it will not affect water sources in the province. During the Alicia Ortega video, the company executives, nevertheless admitted to using water from a local river source for the exploration efforts.
The Ministry says they have secured a contract with 8% more income for the government than established in the 50-year old mining law. The Ministry has said the mining operation would mean US$224 million in revenues for the state over the announced seven-year exploitation period of the 75 year exploitation contract.
The Ministry of Energy and Mines has issued dozens of exploration permits for other mines in the western mineral belt of the country with areas located besides two of the most important protected areas of the country and sources of water. Many of these are to GoldQuest for other sites from Padre las Casas to Dajabón. GoldQuest has underway a major public relations campaign to share the benefits of the mining project.
The granting of the mining exploitation concession is conditional on the ratification of the Exploitation Permit issued by the Ministry of Energy and Mines by President Danilo Medina and the carrying out an Environmental Impact Study, and subsequently obtaining an Environmental License, including the local social license by the affected community.
In a press release, the company explains that its 50-km-long land package hosts multiple targets areas including the multi-million-ounce gold/copper Romero Project, 22 km to the northwest that has received approval from the Ministry of Mines for a 75-year Exploitation License.
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Noticias SIN
7 Dias
GoldQuest
19 February 2018
