Chamber of Deputies: Barrick Gold contract revision cannot be put off

SANTO DOMINGO. The president of the Chamber of Deputies, Abel Martinez, said that it is invariably and impossible to put off a decision on the revision of the contract of the State with Barrick Gold, and he said that they would use all of the legal statutes, both national and international to achieve that the exploitation of the gold deposits is beneficial to the country.

He issued a call to the executives of Barrick Gold to sit down with the government to revise the contract for the exploitation of the Pueblo Viejo gold mine in Cotui in a friendly manner. The mine is located in Sanchez Ramirez province.

"We hope that their executives step up so that the Government and Barrick examine the contract; that they sit down with the government to find a way out which benefits the country. However, this revision cannot be delayed and in the Chamber of Deputies we have a firm decision to act in this way," said Martinez.

The head of the legislative organ authorized the permanent commissions of Justice, the Environment and Natural Resources, Hacienda and Energy and Mining to review the contract between the Dominican state and the Barrick Gold company.

"We have a firm and unbreakable conviction that the country should obtain better conditions from this mining venture, and that there exists a variation in the terms of the agreements, in order that they may be more favorable to the nation," he added.

The Justice Commission, which is chaired by Demostenes Martinez, will be charged with the legal review of the contract and recommendations to the plenary of the chamber about the steps to be taken, according to what is set forth in the Constitution and without affecting the state of law.

The Environmental Commission, whose chairman is Juan Jose Rosario, will study everything relating to contamination and the environmental impact of the exploitation of the mine.

The commissions of Hacienda, chaired by Marino Collado, and Energy and Mining which is led by Alejandro Jerez Espinal will look at the economic aspects.

The commission have one month in which to present their reports to the Chamber of Deputies.

Barrick explains the contract benefits the country

The company Pueblo Viejo Barrick Gold reported yesterday that the contract with the state is solid and foresees earnings for the country greater that in other jurisdiction in which they operate.

Sources in the sector said yesterday that the Executive Branch has not contacted the executives of Barrick regarding a possible revision of the contract as suggested by some sectors, including the president of the Chamber of Deputies, Abel Martinez.

Jorge Esteva, the communications director for Barrick, reported yesterday that the contract with the state is solid, fair, "and they recognize and trust in the state of law that prevails in the Dominican Republic."

He said that a sample of this is that they have made an investment of US$4.0 billion in order to build the plant. Esteva said that one of the virtues of the Barrick contract is that everything is negotiated in percentages.

"The state is going to receive exactly the same benefits that the company receives," he said.