Local August 18, 2026

TSA cancels Falcondo mining concessions after nearly seven decades

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TSA cancels Falcondo mining concessions after nearly seven decades

Santo Domingo.- The Superior Administrative Court (TSA) has canceled the mining concession contracts between the Dominican State and Falconbridge Dominicana (Falcondo), ending a nearly seven-decade contractual relationship over the Quisqueya I concession, covering 22,392 hectares between La Vega and Monseñor Nouel.

The Second Chamber of the TSA issued the ruling on August 12, following an action filed in July 2025 by the Patrimonial Fund of Reformed Companies (FONPER) on behalf of the Dominican State. The case cited breaches related to mining operations, economic and labor obligations, and the submission of technical reports required under Dominican law.

The court found that operations at Quisqueya I had been suspended since November 17, 2023. It also noted that Falcondo had failed to submit required semiannual progress reports for 2023, 2024 and 2025, as well as annual operational reports for 2023 and 2024.

According to the TSA, the breaches involved essential obligations tied to the concession, particularly the effective exploitation of mineral resources and keeping authorities informed about mining activities. The court determined that the prolonged inactivity and violations were serious enough to justify terminating the contracts and rejected arguments seeking to dismiss the State’s case.

The decision comes amid significant economic and labor consequences following Falcondo’s shutdown. More than 900 workers were laid off in 2024, while former employees whose contracts ended in March 2026 have reported outstanding claims of approximately RD$300 million. Contractors, suppliers and businesses in Monseñor Nouel have also reported substantial unpaid obligations and economic losses linked to the closure.

The TSA ruling is separate from Falcondo’s ongoing commercial restructuring process under Law 141-15 on Restructuring and Liquidation of Companies and Individual Merchants. That proceeding, initiated by creditors, will continue independently to address the company’s outstanding debts and liabilities.

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