“Not all money is good money,” says the old saying. Yet, with gold prices at record highs, many are insisting this is the time to exploit gold in the mountain valleys of the Dominican Republic.
Mountain valley inhabitants, environmentalists, academia and priests have been protesting the government authorizations that could lead to the green light for gold mining operations in an area in San Juan de la Maguana where communities fear it will impact water sources.
The Dominican Academy of Science experts say that the project would affect water resources because the proposed mining site would be located 900 to 1,000 meters above sea level and above the confluence of the San Juan and La Guama rivers that discharge their waters into the Sabaneta Dam. The Academy of Sciences opposes any mining operation at 500 meters above sea level.
The venture remains a point of high tension in the Southwest. GoldQuest explains that it has operated in the country for 24 years, investing approximately US$50 million in exploration and social programs since 2002, yet it has not yet been able to move beyond the exploration phase. Past governments have acknowledged the high risks of impacting water sources. GoldQuest has announced the mine has capacity to produce 840,000 ounces of gold and 980,000 ounces of silver. Gold broke the US$5,600 ounce mark in January 2026.
Executives from GoldQuest are intent on getting the permits. They are encouraged by the pro-business Abinader administration. The Ministry of Environment under Paino Henriquez authorized the company to pay for an environmental study that would pave the way for the government to issue the exploitation permit. Paino Henriquez was a prominent corporate lawyer until accepting to be Minister of Environment.
GoldQuest has contracted AECOM, a globally recognized environmental consulting firm, to lead the Environmental Impact Assessment (EIA) process for the Romero Project and prove the project can be environmentally sustainable enough to get the environmental license. According to Luis Santana, CEO and spokesperson for Goldquest in the Dominican Republic, the results of these comprehensive environmental impact studies are expected to be ready by August 2026. The study specifically evaluates the “Category A” classification of the project, focusing on the company’s claims that the underground mine will not impact the San Juan River or the Sabaneta Dam.
In a recent press conference, Goldquest complained that it has been working for the gold exploitation rights in the San Juan de la Maguana province for two decades. The company is encouraged by the high prices of gold and is now doubling down on efforts to secure a “green light” from the Dominican government. Past successive administrations have prioritized environmental preservation and the water needs of the local population over industrial interests. Goldquest continues to insist its proposed “Romero Project” is environmentally sustainable.
GoldQuest has no past history exploitating a mine. While the company promotes itself as a mining company, its primary role is to get the permits.
Historically, the Executive Branch in the DR has withheld the definitive exploitation permit, citing the potential risk to the San Juan River and the Sabaneta Dam, which are vital for the region’s agricultural valley.
In the past, social pressures impeded Falconbridge Dominicana from developing mining reserves in the Loma de Miranda mountain.
In the past, Goldquest made headlines for its proposals to use rainwater for its mining operations. Alexander Medina, director of Mines at the Ministry of Energy and Mines under the Leonel Fernandez administration, had gone on record in 2018 accepting the promise of the company to use rainwater for the mining operations. While the Ministry of Energy and Mines at the time gave its blessing, the permits were not issued for the procedure to continue after major local rejection of the rainwater proposal.
GoldQuest has submitted to the Dominican Government a design for a subterranean mining project that would harvest rainwater and that it will not use water from the San Juan River. The proposed operation plan argues the mining operation will rely on efficient water use and recycling and will not discharge anything into the San Juan River.
Environmental guarantees and “underground” strategy
During a recent press briefing, GoldQuest CEO Luis Santana sought to address the long-standing fears regarding water security. Santana emphasized that the Romero Project is designed as an underground operation rather than an open-pit mine. He asserted that the process would exclude the use of cyanide or mercury and would not require tailings dams, technologies often associated with high-risk environmental contamination in the Dominican Republic.
According to Santana, the company is currently conducting Environmental Impact Studies (EIS) based on international standards, with results expected by August 2026. This stage is a critical legal hurdle under Environment Law 64-00, yet it does not guarantee a final exploitation license.
GoldQuest is working to “override” the social pressure through a communications strategy and proposed local investment. To sweeten the proposal, the company announced:
• A US$11 million plan to manage the San Juan River basin over five years.
• A commitment to an “Environmental Strategic Evaluation” for the Southwest, a study not strictly required by current law but seen as a move to appease academic and scientific critics.
The US$50 million persistence
The company’s timeline highlights a saga of persistence against regulatory and social barriers:
• 2002–2012: A decade spent proving the viability of mineral resources.
• 2012–2016: Technical feasibility studies.
• 2017–present: The current “permitting phase,” characterized by frequent delays as the Ministry of Environment and other authorities maintain oversight on logistics, while the Ministry of Energy and Mines balances economic potential against strong local opposition.
Economic promises vs. public opinion
GoldQuest estimates that moving to the exploitation phase would require an additional investment of US$300 million (bringing the total initial investment to over US$400 million). The company projects that the mine would generate US$3.5 billion in exports and over US$1 billion in tax revenue for the Dominican state.
In terms of local impact, speaking for Goldquest, Santana claims the project will create 6,000 direct and indirect jobs. Goldquest says its proposal would increase the allocation of profits to the municipality and promises US$326 million for local development.
However, the “social license” remains elusive. Santana admitted that the company has struggled to communicate its vision effectively. Internal surveys cited by the company suggest that while 50% of the community may favor the project, 30% remain staunchly opposed and 20% are undecided. This 30% opposition is largely comprised of vocal agricultural groups and religious leaders who argue that mining in the “Granero del Sur” (the South’s Granary) is an existential threat to the region’s water-dependent economy.
The Dominican government continues to face the familiar challenge of weighing substantial foreign direct investment against the non-negotiable demand for water sovereignty expressed by the people of San Juan de la Maguana.
Even if the permits are issued, the mining operation may still be opposed in court. Back in 2018, Luis Scheker Ortiz, then president of the Academy of Sciences, said the project violates Article 15 of the Constitution, on water resources, which states that “water constitutes a strategic national patrimony for public use,” and prioritizes human consumption over any other use. The case could go to the Constitutional Court.
Meanwhile, community and environmental groups continue to carry out protest activities against the government issuing the exploitation permit. They argue if the exploitation permit is granted, the Abinader administration would be the first to sell out the water security of the entire San Juan de la Maguana province.
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