Gold bars representing Dominican Republic gold mining (photo: Jingming Pan / Unsplash)

Dominican Republic Gold Mining: Exports Jump 80%

Dominican Republic gold mining exports leapt 79.6% in the first three months of 2021, in a sign of the country’s economic reactivation following the turmoil of the global pandemic.

Zona Colonial in Dominican capital Santo Domingo. You may be interested in Dominican Republic gold mining.
Zona Colonial in Dominican capital Santo Domingo

According to Pedro Esteva, the president of the Oil Mining Chamber of the Dominican Republic (Camipe), the entire mining sector grew 16.2% during that period, while exports hit $574.4 million — a 3.4% increase compared to the same period in 2020 (all figures in USD).

While gold was the standout performer, ferroalloys saw an 18.4% increase in exports, while copper exports rose 1.6%, and zinc ore exports grew 0.5% during the period.

SEE ALSO: Register a Company in the Dominican Republic

Speaking on July 1, Esteva was keen to highlight that these strong results were due to improved productivity and current market conditions for gold and other mining in the Dominican Republic, rather than reflecting a reactivation of the sector.

“The mining sector continued to operate at full capacity [during the pandemic] and to this we added the increase in mineral prices and the proactivity of the projects, which we can with great pride say provide examples of new technology, and sustainable management,” Esteva was reported as saying.

According to Esteva, the strong results being reported for the extractive industries, and particularly Dominican Republic gold mining play into a general trend for growth in the economy, which has seen the construction sector grow 54%, free trade zones grow 30.1%, and manufacturing grow 15.9% during the same period.

Dominican Republic gold mining: an overview

While the Dominican Republic is perhaps more famous for its tourism sector, as well as its production of agricultural goods such as coffee, tobacco, and sugar, as Esteva pointed out, the mining sector is the number one source of revenues generated by export goods.

Among the minerals extracted, Dominican Republic gold mining is by far the most important in terms of volume and value, with the Pueblo Viejo gold mine, located in the north-central Sánchez-Ramírez Province, being the largest gold mine in the Americas, and third-largest in the world.

In 2020, Barrick Gold, a Canadian firm that has a 60% stake in the mine, announced that the lifespan of Pueblo Viejo would be extended beyond 2040. Those plans include an investment of $1.3 billion to expand the processing plant and tailings facility, with the potential to increase the value of exports to $22 billion, and generating an estimated $4 billion in extra taxes. 

Those figures are based on a gold price of $1,500 per ounce. Prices have not dropped below that level since June 2019. At the time of publication, the value of gold stood at approximately $1,777 per ounce, suggesting that the potential for the expansion could be even more lucrative.

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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Craig Dempsey

Craig Dempsey

Craig is a seasoned business professional in Latin America. He is the Managing Director and Co-Founder of the Biz Latin Hub Group that specializes in the provision market entry and back office services. Craig holds a degree in Mechanical Engineering, with honors and a Master's Degree in Project Management from the University of New South Wales. Craig is also an active board member on the Australian Colombian Business Council, and likewise also active with the Australian Latin American Business Council.

Craig is also a military veteran, having served in the Australian military on numerous overseas missions and also a former mining executive with experience in various overseas jurisdictions, including, Canada, Australia, Peru and Colombia.

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