The mining sector of the Dominican Republic is a great catalyst of the national economy, generator of foreign exchange, promoter of technologies, and creator of jobs. Even during the pandemic, which effects have not been unrelated to our country, this sector has remained resilient and has been a key supporter for the economy by providing income that has helped mitigate the impact of confinement and paralysis of productive activity.
In this sense, it should be noted that the modernization of the mining sector has been framed precisely among the main objectives of this new government. Among the main lines of action proposed is the review of the current regulations of the sector, in order to enact a new Mining Law of the Dominican Republic that satisfies current needs, which come from the 50 years that the law that governs the sector. It is expected that it will reinforce the existing guarantees for transparency, the environment, legal certainty, as well as better tax treatment to encourage investment.
Likewise, since the community and environmental issues are decisive factors for mining growth ambitions, it has been proposed to bring in investments and approve other series of initiatives. One of them is the Draft Law on Territorial Organization, approved in the first reading in the Chamber of Deputies. This project seeks to establish the sustainable organization guidelines of the country and the criteria for assigning the use of mining land, in order to achieve sustainability and not harm the country socially or environmentally. In the same way, it seeks to propose an extraction system that allows us to efficiently take advantage of the economic wealth that we have and represents a way to effectively develop the regions, according to the mineral deposits in exploitation that are located throughout the entire national territory.
Definitely, the capacity of the mining sector in this country and its importance is undeniable. As stated by Mr. Pedro Esteva, president of the Chamber of Petroleum Mining (CAMIPE), “the mining sector is a great catalyst for the global economy, while in many countries some sectors have had to close their operations, mining is still active, influencing the contribution of basic inputs for different industries, with the highest technology, industrial safety, and environmental controls. We are the suppliers of all the industries and an essential part of the development of the medical equipment that at the moment are so in demand… from scalpels, serums, special beds, and medicines”. Likewise, he highlighted how the mining sector “is essential to provide raw materials for the communications, energy, chemical industry, construction, and agriculture sectors.”
DMK Abogados, being one of the leading law firms in the Dominican Republic, over the years has stood out for providing comprehensive legal advice in areas such as foreign investment, intellectual property, tourism, environment, energy, mining, and others. Within the mining sector, we have been representing prominent mining companies in the Dominican Republic, such as Globestar Mining Corporation, Barrick Gold, and CORMIDOM, providing them with comprehensive advice on reference issues.
By: Patricia Guzmán Parra
Director of the Environment Department.
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