Chamber of Deputies will undertake the revision of the contract with Barrick
Diario Libre
SANTO DOMINGO. The Chamber of Deputies will undertake the issue of the contract to exploit the mine at Pueblo Viejo in Cotui by the Barrick Gold Corporation and do everything within its power for it to be revised for more favorable terms.
The leader of the Chamber, Abel Martinez Duran, upon offering the information, explained that the National Congress, according to article 93 of the Constitution can "approve or disapprove the contracts submitted by the President of the Republic according to what is authorized by article 128, numeral 2, inset d, as well as the later amendments or modifications that alter the conditions that originally were established in said contracts at the moment of their legislative approval."
In this sense, he said that they would try to get more favorable terms for the Dominican Republic in the contract and therefore protect the national interests.
"In view of the fact that the initial factors that gave origin to the approval of this contract have changed, it becomes no longer possible to put off for the good of the national patrimony and the interest of the nation that those terms be reviewed and in the Chamber of Deputies we will not rest until the country receives what is fair for this exploitation (of the mine)," said Martinez.
The legislator assured reporters that there exists a consensus among the different blocs of legislators from all the parties for them to proceed to a revision of the State Contract with Barrick Gold, the company that announced the start this month of the sale of gold on the International Market.
One of the points to be reviewed is the one that consigns that when the company has recovered all of its investment and has obtained a return on investment of 10%, they will begin to pay the state 28.75% of the net earnings and 25% tax on income.
Another aspect that should be examined is that the multinational was allowed to increase its total investment from US$700 million to US$1.5 billion, and not satisfied with that, they raised it to US$2.585 billion and that with no objections from its principal partner the investment was increased to US$3.5 billion.
At the present time there is talk of reaching US$4.0 billion, without taking into consideration the consequences for the Dominican state.
When the original contract was signed, gold on the international financial markets was priced at some US$300.00 a troy ounce, and at the present time it is quoted at US$ 1,654 per ounce.
Requests by other blocs
Deputy Carlos Gabriel Garcia submitted, last year, a resolution in which it was requested that the President of the Republic should review the contract for the exploitation of the mine at Pueblo Viejo, Cotui, with the Barrick Gold Corporation.
And the Social Christian Reformist Party (PRSC), through their secretary general Ramon Rogelio Genao, proposed the start of a broad based social movement to start renegotiations of the contracts that the Dominican state has with the Barrick Gold mining company.
The leader of the Chamber, Abel Martinez Duran, upon offering the information, explained that the National Congress, according to article 93 of the Constitution can "approve or disapprove the contracts submitted by the President of the Republic according to what is authorized by article 128, numeral 2, inset d, as well as the later amendments or modifications that alter the conditions that originally were established in said contracts at the moment of their legislative approval."
In this sense, he said that they would try to get more favorable terms for the Dominican Republic in the contract and therefore protect the national interests.
"In view of the fact that the initial factors that gave origin to the approval of this contract have changed, it becomes no longer possible to put off for the good of the national patrimony and the interest of the nation that those terms be reviewed and in the Chamber of Deputies we will not rest until the country receives what is fair for this exploitation (of the mine)," said Martinez.
The legislator assured reporters that there exists a consensus among the different blocs of legislators from all the parties for them to proceed to a revision of the State Contract with Barrick Gold, the company that announced the start this month of the sale of gold on the International Market.
One of the points to be reviewed is the one that consigns that when the company has recovered all of its investment and has obtained a return on investment of 10%, they will begin to pay the state 28.75% of the net earnings and 25% tax on income.
Another aspect that should be examined is that the multinational was allowed to increase its total investment from US$700 million to US$1.5 billion, and not satisfied with that, they raised it to US$2.585 billion and that with no objections from its principal partner the investment was increased to US$3.5 billion.
At the present time there is talk of reaching US$4.0 billion, without taking into consideration the consequences for the Dominican state.
When the original contract was signed, gold on the international financial markets was priced at some US$300.00 a troy ounce, and at the present time it is quoted at US$ 1,654 per ounce.
Requests by other blocs
Deputy Carlos Gabriel Garcia submitted, last year, a resolution in which it was requested that the President of the Republic should review the contract for the exploitation of the mine at Pueblo Viejo, Cotui, with the Barrick Gold Corporation.
And the Social Christian Reformist Party (PRSC), through their secretary general Ramon Rogelio Genao, proposed the start of a broad based social movement to start renegotiations of the contracts that the Dominican state has with the Barrick Gold mining company.
Diario Libre
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