Minister of Energy and Mines Antonio Isa Conde said that the low ranking of the Dominican Republic in the Fraser Institute 2018 annual survey of mining and exploration companies is due to the objectionable history of some mining companies that has led to a generalized rejection of mining operations in the country. The Dominican Republic is ranked 76th of 83 countries as one of the least attractive jurisdictions for mining in the world. Sharing the bottom 10 with the Dominican Republic are Neuquen, Nicaragua, Guatemala, Panama, China, Ethiopia, Dominican Republic, La Rioja, and Bolivia.
The survey is described by the institute as an attempt to assess how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment. The survey responses rank provinces, states, and countries according to the extent that public policy factors encourage or discourage mining investment.
Energy and Mines Minister Isa Conde explained the low ranking: “”The difficulties for investment in the mining sector have been generated by the anti-mining culture, fed by some political sectors and by environmental fundamentalists and that has its origin in a traumatic past, which has done a lot of damage to the this country and potential investors.
The Minister refers to the “the law of the funnel”, in which the state has historically received little and the communities around these mines even less, as compensation for the exploitation of the riches of the earth. This has resulted in creating distrust among the local people and has affected the willingness of investor to commit.
In his opinion, another unfavorable factor has been the environmental liability left by the unchecked mining of the past. He said companies now are applying new technologies and production practices that impact less on the environment, allowing remediation at a quicker pace. He explained the Ministry is working on progressive legislation to give way to sustainability in the extractive industry.
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Fraser Institute
Ministry of Energy and Mines
5 March 2019