Chinese state company acquires rights to exploit mines in the Dominican Republic
The Dominican Mining Corporation ceded all of their concessions
SANTO DOMINGO. By means of purchase acts, a state company from the Popular Republic of China is now the majority owner of the concessions held by the Dominican Mining Corporation (Cormidom), a contravention of the Mining Law which prohibits this type of permits to another state.
The purchase by Nonfemet of the shares of Perilva occurred two years before Perilva acquired Cormidom, according to what can be learned from a communiqué that was sent out in February 2009 by the Australian company, reporting the operation for the sum of US$45.5 million.
In spite of the time of these operations, in the books of the Directorate General of Mining, there are no signs of the participation of these companies as concessionaires of a state asset.
The registers that exist refer to the shareholder participation of the Sarmin company, the former owner of Cormidon, together with the Globestar company.
Consulted regarding this, the Director of Mining, Alexander Medina Herasme, said that he did not know the extent of the negotiations, but he warned that he would immediately begin an investigation to determine the legal implications that they might have, in accordance with what is ordered in Article 9 of the Mining Law, 146.
This article says: "The mining concessions cannot be granted to foreign governments, nor directly, nor through intermediaries whether they are persons or corporations. In cases properly justified and with prior approval of the National Congress, the Executive Branch can carry out special agreements with foreign mining companies which are partially or totally state owned."
Median Herasme says also that he does not know if the Dominican tax agencies had any knowledge of the transaction between Globestar and Perilva in order to determine whether or not there was a payment of taxes since this operation happened before his appointment to the job.
The purchase by Nonfemet of the shares of Perilva occurred two years before Perilva acquired Cormidom, according to what can be learned from a communiqué that was sent out in February 2009 by the Australian company, reporting the operation for the sum of US$45.5 million.
In spite of the time of these operations, in the books of the Directorate General of Mining, there are no signs of the participation of these companies as concessionaires of a state asset.
The registers that exist refer to the shareholder participation of the Sarmin company, the former owner of Cormidon, together with the Globestar company.
Consulted regarding this, the Director of Mining, Alexander Medina Herasme, said that he did not know the extent of the negotiations, but he warned that he would immediately begin an investigation to determine the legal implications that they might have, in accordance with what is ordered in Article 9 of the Mining Law, 146.
This article says: "The mining concessions cannot be granted to foreign governments, nor directly, nor through intermediaries whether they are persons or corporations. In cases properly justified and with prior approval of the National Congress, the Executive Branch can carry out special agreements with foreign mining companies which are partially or totally state owned."
Median Herasme says also that he does not know if the Dominican tax agencies had any knowledge of the transaction between Globestar and Perilva in order to determine whether or not there was a payment of taxes since this operation happened before his appointment to the job.
En portadaVer todos