Economy January 13, 2021 - 10:18 am

Barrick’s Dominican operation hangs by a thread: report

The Pueblo Viejo mine is again starting production in 2012. Barrick holds a 60% interest and is the operator, of this mine and Goldcorp owns 40% of the mine. The mine is expected to operate for 25 years and produce and estimated 23.7 million ounces. This site was unsuccessfully mined by the Dominican government and their mining efforts caused major environmental contamination to nearby lakes and rivers.

Santo Domingo.-The Canadian miner Barrick’s Dominican Republic operation hangs by a thread as it seeks the support of various Dominican sectors to avert an eventual shutdown of the Pueblo Viejo mine, in Cotuí (northeast).

The mine’s potential lifespan is over 20 additional years to extract gold and silver.

Barrick’s open pit mine covers a mountainous area of 4,800 hectares in Sánchez Ramírez province since 2013, after an initial investment of US$45 billion, which the company claims it has yet to recover, despite having paid the Dominican State around US$2.3 billion in taxes and other concepts.

The global mining giant says the Dominican Gov. has kept 52% of the cash flows from the operation, while Barrick has obtained 48%, or US$2.08 billion.

“Just in 2020, Barrick Pueblo Viejo has accumulated tax payments for 385 million dollars and agreed to advance 95 million dollars corresponding to the 2021 tax burden, so that the government can face the emergency caused by the pandemic,” Diario Libre reports.

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