The Canadian mining company, GoldQuest Mining Corporation issued a press release on 29 October 2018, in which it makes known that it has not yet received the Presidential endorsement of the exploitation license for its Romero Project. The company needs the endorsement to commence the formal environmental and social impact assessment (ESIA) process where environmental and social issues would be addressed.
In a press release, the company announced:
“After delays of over three years, and with no clarity from the DR’s government on any timeframe for receipt of the license, the company is taking steps towards a cash conservation policy and is proactively seeking opportunities in other countries to deploy its cash and expertise to maximize benefit to shareholders.
“GoldQuest looks forward to deploying its capital and expertise to other jurisdictions,” commented Bill Fisher, GoldQuest’s CEO.
“With regret, the company has determined to reduce its staff in the DR to a minimum and is suspending community programs. From a maximum of 180 employees, our subsidiary GoldQuest Dominicana has been forced to reduce to a skeleton staff to protect our assets and represent our interests,” announced the company.
In the press release, the company explains that under DR law, any environmental and social studies can only be formally executed by the company once it has received formal Terms of Reference from the Ministry of Environment (“MoE”). The MoE cannot write these Terms of Reference until the long awaited License has been granted, so any environmental or social concerns regarding the project cannot be addressed until then.
The underground gold exploitation proposed by the company had met with much opposition on grounds that it would affect important water sources that are used for farming and human consumption in the area. The company had committed to use rainwater, but the area is affected by constant drought.
GoldQuest announced that it would continue to monitor the political situation in the Dominican Republic and that any progress towards Presidential endorsement of the license, as it seeks other opportunities in mining friendly jurisdictions.
GoldQuest discovered the main Romero gold/copper deposit in May 2012 and in October 2015 applied for the License. After over two years delay, on January 23, 2018, the Project was finally endorsed by Minister Isa Conde, the Minister of Energy and Mines and sent to the Office of the President for ratification. In August 2018, the Project was again endorsed, unanimously, by the public/private National Competitiveness Council (“CNC”). The CNC includes the Minister of Presidency, Jose Ramon Peralta, Minister of Finance, Donald Guerrero, Minister of Energy and Mines, Antonio Isa Conde, Minister of Environment, Angel Estevez, President of CNC, Rafael Paz, the President of the Industrial Association of the Dominican Republic, Campos de Moya and President of National Council of Private Enterprise, Pedro Brache. The Project was, once again, presented to the Office of the President by the CNC for ratification on October 11, 2018. The Company has no information as to whether the Office of the President has decided to accept or reject the application.
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Globe Newswire
Globe Newswire
1 November 2018
