New deal DomRep-Barrick Gold increases significantly government revenues

DOMINICAN REPUBLIC - In Brief 13 May 2013 by Pavel Isa
Last week, the governmentof the Dominican Republic and Barrick Gold Corp. announced that they reached apreliminary agreement in order to change the terms of their 2009 contract forthe exploitation of the gold mine in Pueblo Viejo. The new contract will significantly improvethe government’s cash flow for the next few years. It will also increase itsparticipation in the net revenues of the project. President Medina’s administrationhas been pushing hardly Barrick Gold Corp. to agree on an amendment of thecontract based on the fact the gold prices have skyrocketed since 2009 and thathis administration, which ends in 2016, would get very low amount of resources.The new terms willincrease government revenues in USD 1.5 billion over the period of 25 years, inaddition to the USD 10 billion it will get based on the initial terms of thecontract. Moreover, in the period 2013-2016, the government will get USD 2.2billion instead of USD 377 millions set by the 2009 contract. We will provide more details in a GSP upcoming report.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.