Regarding the announcement of the Ministry of Energy and Mines on the draft amendment to the Mining Lawa piece of legislation in force for 50 years, the president of the Dominican Association of Exporters (Adoexpo), Elizabeth Mena, highlighted the need for this to encourage foreign investment and adjust to the reality of modern mining.
Mena explained that mining in the Dominican Republic is a sector that has a great growth potentialand with the limited number of companies, particularly in the metal area, it directly impacts the economy, made important contributions to the gross domestic product (GDP) and in 2022 it led total exports for an approximate amount of US$2.250 million.
“Given this scenario, Adoexpo considers that currently It is necessary to review the current mining law in such a way that it adjusts to the current reality of the sector as a benchmark of good practices and a generator of resources for other industries at the national level and that establishes legal certainty for investors”, he emphasized.
He said that “we understand that the legislation is necessary because, as an industry with great potential and that in the last decade has become a world example in environmental, safety, social responsibility and transparency practices, it is a generator wealth of vital importance for all production processes”.
The president of Adoexpo pointed out that, In the last decade, the industry has contributed more than US$136 million to the national treasury and third place as a recipient of foreign investment, equivalent to 15.3%, between 2010 and 2019.
The executive business leader stated that mining is an industrial activity that develops in the long term and that there are currently international references in environmental and social matters that have been adopted in the country by the mining companies established here.
Mena specified that minerals such as gold, ferronickel and copper have become the main export items of the Dominican Republic and that mining not only generates foreign exchange, but also provides basic inputs for other industries such as communications, energy, construction, agriculture and health.
“During the last few years the country has been recipient of significant foreign investment which in many cases have been slowed down by the lack of an adequate legal framework at present”, added the business leader.
Currently, the mining sector in the Dominican Republic is governed by a draft law that dates back 50 years, so it does not correspond to the current situation that contemplates a practice governed by strict international standards; more conscious in environmental terms, empathic with the communities and sustainable over time.
Recently, faced with the imminent economic crisis following the COVID-19 pandemic, the mining sector made available active resources to the Dominican State with a view to neutralizing the implementation of a tax reform that would affect all sectors of the national economy and Dominican families.