Minister of Mines Joel Santos has been touting the high price of gold in his support of more gold mining in the Dominican Republic. He is an advocate of granting exploitation rights to mining companies. But Santos has not focused on the revenues the government is missing out of for lack of action.
Dominican economist Jaime Aristy Escuder has once again issued a stark warning regarding the national government’s fiscal relationship with Barrick Pueblo Viejo, asserting that the Abinader administration’s lack of action is allowing the mining giant to capture nearly all of the “windfall” profits generated by record-breaking gold prices.
In a series of recent analyses, Aristy Escuder argues that the failure to renegotiate the Annual Minimum Tax (IMA) —which is intended to be reset every three years— has left the Dominican state with a significantly diluted share of its mineral wealth.
Contractual conditions enable the government to change the present situation whereby the government is receiving 13.39% in taxation, instead of 38.55%, if actions are taken.
As of early May 2026, global gold prices continue to hover near historic highs of US$4,600 per ounce, having briefly surpassed the US$5,500 mark earlier this year.
Aristy Escuder contends that while the current effective tax rate for the mine sits at just 13.39%, the “original design” of the 2013 Special Lease Agreement (SLA) was intended to scale with price escalations. Under that logic, he argues, a gold price of US$5,000 should trigger an effective rate of 38.55%.
The hundreds of millions of dollars in missing revenue are described by Aristy Escuder as “crucial for the sustainability of public finances and macroeconomic stability.” Aristy Escuder insists the time is now to act as the country bears the burden of increased fuel prices due to the conflict in Iran.
The two phases of the “diluted” yield
The shift from the landmark “win” for the Dominican state in 2013 to the current perceived disadvantage is defined by two distinct political and economic eras:
The 2013 “original design” (The goal)
Following a period under the Leonel Fernández administration where the state famously received only US$3 for every US$100 in gold exports, a ratio deemed “unacceptable,” then-President Danilo Medina forced a “redo” of the contract. The original contract allowed the company to promptly recover its entire $4 billion investment plus a 10% return before paying Net Profits Interest (NPI).
The 2013 renegotiation, led by the Danilo Medina administration, eliminated the 10% return requirement and established the IMA. That agreement was signed by Gustavo Montalvo (Minister of the Presidency) and Manuel Rocha (then-president of Barrick Pueblo Viejo). The amendment introduced a “staircase” model via the IMA. The goal was to ensure that as gold prices rose, the government’s share would escalate to maintain a roughly 50/50 split of the mine’s benefits.
The 2020 “advanced tax” shift (The change)
The framework shifted in October 2020 when the newly inaugurated Abinader administration faced a massive fiscal deficit compounded by the global pandemic.
The agreement was spearheaded by President Luis Abinader and his cabinet, specifically Lisandro Macarrulla (then-Minister of the Presidency) and Antonio Almonte (Minister of Energy and Mines). It was signed by Juana Barceló (president of Barrick Pueblo Viejo) and Mark Bristow (CEO of Barrick Gold).
To secure immediate liquidity of US$108 million for Covid-19 relief, the government accepted advanced payments for taxes and royalties. Critics, including Aristy Escuder, argue this move “decoupled” the tax yield from the 2013 escalators, essentially exhausting the state’s leverage just before the historic bull market in gold.
Total payments for 2020 reached US$385 million, including royalty advances for 2021, 2022, and 2023.
While this provided immediate liquidity for hospitals and social programs, critics argue it “rented out” the future. By paying in advance when gold was lower, the company may have secured tax credits or stabilized its obligations just before the historic price surge of 2025–2026, where gold has hit US$5,000 per ounce.
The current conflict: A failure to reset
Aristy Escuder’s central critique is that the contract established that the IMA rate must be reset by mutual agreement every three years to reflect market realities. By maintaining the status quo, the Abinader administration is currently receiving the 13.39% rate, effectively granting Barrick a “corporate advantage” during a period of extraordinary profitability.
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CDN
Diario Libre
Barrick
7 May 2026