Santo Domingo.- A State holding from China has snapped up a majority stake in the Dominican Republic-based mining company Cormidom, a transaction which violates the country’s Mining Law that bans such permits to another state, newspaper Diario Libre reports.
Cormidom has rights to mine gold and silver at Cerro Maimon, nickel at Loma Mala and Loma Cumpié and Managua, in addition to filed requests to exploit nine other sites.
According to a Cormidom statement, the Australian company Perilya Limited acquitted 100% of its shares in 2011, and that 53% of Perilya shares belong to the Chinese company Shenzhen Zhongjin Lingnan Nonfemet Company Limited.
Diariolibre.com, quoting a statement disclosed by the Australian company in February 2009, reveals that Nonfemet’s purchase of Perilya shares for US$45.5 million occurred two years before the latter’s acquisition of Cormidom. “Despite the timing of these transactions, the Mining Agency has no record of the participation of these companies as concessionaires of a state asset.”
Current records show Cormidom’s former owner Sarmin, together with Globestar, as stakeholders. “Mining director Alexander Medina Herasme said he’s unaware of the scope of the negotiations, but warned that he will immediately start an investigation to determine the legal implications.”