NewsWhore
11-03-2009, 04:10 PM
The 29 October issue of Clave newspaper reports that Barrick Gold will invest US$3 billion to exploit the gold reserves estimated at 13.4 million troy ounces. Placer Dome had estimated the reserves at 1.2 million troy ounces. Once the company reaches a 10% level of profitability, after recovering its initial investment in 7 years, the state will be able to share in the profits. The government would also receive 3.2% of the sales minus costs (RNF) and 25% income tax.
The original contract did not condition government revenue to the 10% profitability. Edwin Ruiz explains that Barrick Gold (60%) and Goldcorp (40%) now make up Pueblo Viejo Dominicana Corporation (PVDC) after purchasing the rights from Placer Dome in 2005. Plans are to extract 600,000 to 650,000 ounces of gold a year at a cost of US$275-US$300 per ounce for the first five years, according to Clave.
The amount of gold has changed from the days of Placer Dome to those of Barrick. Journalist Edwin Ruiz reports that while in September 2005 Placer Dome announced an investment of US$1.35 billion to extract 800,000 ounces of gold during the first six months of operation, and 12 million ounces in 20 years. Nevertheless, three months after purchasing Placer Dome, on 27 February 2009 Barrick Gold announced that the proven reserve of the Montenegro mining reserve was 22.4 million ounces of gold. It announced an investment of US$2.7 billion, and an additional US$300 million to expand the plant's processing capacity from 18,000 to 24,000 tons per day.
The government needs to relocate two entire towns, Los Cacaos and El Llagal, at a cost of US$19.5 million.
While in the previous contract, the Dominican government was responsible for environmental damage caused by Rosario Mining Company and Rosario Dominicana since 1975, the PVDC will now share the cost of recovering the area. The Dominican government needs to contribute US$37.5 million to complement Barrick's announced investment of an equal amount. The Mejita and Margarita rivers and the subterranean streams are loaded with sulphur and heavy metals left by past gold mining operations.
Fernando Sanchez Albavera, executive director of Barrick in Pueblo Viejo, says that the company has been very generous. "We have found an environmental disaster. We are making a gift of US$37.5 million to the state because they told us they did not have the resources," he told Clave.
Barrick is expected to start operations in September 2011. The company purchased the Monte Rio generators and two Seaboard barges currently on the electricity grid for its operations.
More... (http://www.dr1.com/index.html#6)
The original contract did not condition government revenue to the 10% profitability. Edwin Ruiz explains that Barrick Gold (60%) and Goldcorp (40%) now make up Pueblo Viejo Dominicana Corporation (PVDC) after purchasing the rights from Placer Dome in 2005. Plans are to extract 600,000 to 650,000 ounces of gold a year at a cost of US$275-US$300 per ounce for the first five years, according to Clave.
The amount of gold has changed from the days of Placer Dome to those of Barrick. Journalist Edwin Ruiz reports that while in September 2005 Placer Dome announced an investment of US$1.35 billion to extract 800,000 ounces of gold during the first six months of operation, and 12 million ounces in 20 years. Nevertheless, three months after purchasing Placer Dome, on 27 February 2009 Barrick Gold announced that the proven reserve of the Montenegro mining reserve was 22.4 million ounces of gold. It announced an investment of US$2.7 billion, and an additional US$300 million to expand the plant's processing capacity from 18,000 to 24,000 tons per day.
The government needs to relocate two entire towns, Los Cacaos and El Llagal, at a cost of US$19.5 million.
While in the previous contract, the Dominican government was responsible for environmental damage caused by Rosario Mining Company and Rosario Dominicana since 1975, the PVDC will now share the cost of recovering the area. The Dominican government needs to contribute US$37.5 million to complement Barrick's announced investment of an equal amount. The Mejita and Margarita rivers and the subterranean streams are loaded with sulphur and heavy metals left by past gold mining operations.
Fernando Sanchez Albavera, executive director of Barrick in Pueblo Viejo, says that the company has been very generous. "We have found an environmental disaster. We are making a gift of US$37.5 million to the state because they told us they did not have the resources," he told Clave.
Barrick is expected to start operations in September 2011. The company purchased the Monte Rio generators and two Seaboard barges currently on the electricity grid for its operations.
More... (http://www.dr1.com/index.html#6)