Investorideas.com – big ideas for global investors Search www.investorideas.com
   Member Access       Sign-up       Newsfeeds        Companies        Stock Directories       Research       Video       Funding   





Gold Carpet Treatment Promised for Miners in the Dominican Republic: Alexander Medina

Source: Peter Byrne of The Gold Report

Category: Investment, Gold, Mining

Ideas get bigger when you share them...

Visit this company: The Gold Report

January 25, 2013 (Investorideas.com Mining stocks newswire) The Gold Report caught up with Alexander Medina, the newly appointed director of mining for the Dominican Republic. With gold discoveries popping up all over Hispaniola—the country shares the metal-rich island with Haiti—Medina is a very busy government minister. But he was happy to spare a little time to talk to The Gold Report about what his office is doing to ensure that mining companies get the gold carpet treatment under the new administration.

Join Investor Ideas Members to access the Renewable Energy stocks directory, water stocks, biotech stocks, defense stocks directories and the Insiders Corner

The Gold Report: What is the main job of the director of mining management?

Alexander Medina: I oversee all the mining policies of the Dominican Republic. And I am in charge of granting mining permits and licenses to explore for precious and base metals and minerals.

TGR: What experience do you bring to this job?

AM: I have worked in mining operations, mineral processing and management for 35 years. As a chemical engineer, my background is in precious minerals and metals. I worked in the nickel business here in the Dominican Republic, first with Falconbridge then Xstrata Plc (XTA:LSE) when it took over Falconbridge.

TGR: Does the new administration of the Dominican Republic support responsible exploration and mining development?

AM: Investors and explorers in the Dominican Republic have the full support of the Dominican government. Actually, we are currently improving our processing methods in order to speed up the permitting of mining ventures. I am intent that exploration permits be granted within a few months of application, instead of a couple of years, as has often been the case, unfortunately.

TGR: Will it be easier for junior mining companies to get permits to conduct exploration and then to open up mining operations?

AM: It will be easier for exploration permits. The new president of our country, Danilo Medina, has instructed my office to speed up the permitting process for exploration. But licensing a mine for production can be much more complicated than exploring for resources. An environmental permit is required for going onto production, and that can take some time. There are many complex issues involved in making sure that the mines are environmentally safe and sound.

TGR: Can you briefly explain the permitting process, and what a firm has to do to be permitted to explore for metals and minerals?

AM: According to Dominican law, all foreign companies must have a local representative, an arrangement with a local company. And that local company can take charge of meeting with mining officials and submit a request for mining exploration license, providing the information necessary to obtain a permit from the government. We go over all of the data presented before determining if the project is a fit.

Under Mining Law 146, the terms of the formal arrangement between the foreign company and the local company must be legally registered with our office, because the venture is subject to taxation. In order to get the concession, the principals in the venture must declare what kind of minerals and metals they are searching for. They must describe in detail the geological features of the geographical area that they wish to explore. That's about it.

TGR: It is estimated that the Dominican Republic has $58 billion (B) in metal and mineral reserves. Can you talk about what firms are leading the way to develop this resource?

AM: The largest mining operation in the country today is Barrick Gold Corp.'s (ABX:TSX; ABX:NYSE) Pueblo Viejo deposit. It's an investment of $4B. It's a world-class deposit containing more than 24 million ounces (Moz) gold. It's a polymetallic deposit. Pueblo Viejo includes gold, silver, zinc and copper. All of these metals are going to be recovered in the life span of the mine. In addition to the proven reserves, it has now been inferred that there is another 10 Moz gold in the Pueblo Viejo deposit, which needs to be confirmed. That means that the operational life span of the mine could easily increase from 25 to 35 years.

The second largest operation is Xstrata's nickel property. It's a 40-year-old mine. It can produce 30,000 tons of ferronickel. It may be old, but it still has enough in proven reserves to operate for 20 years or more.

The third largest property is Perilya Ltd.'s (PEM:ASX) Cerro de Maimón mine. This operation has 10 years of reserves and produces copper, gold and silver. The fourth largest property is PanTerra Gold Ltd.'s (PGI:ASX) Las Lagunas mine. This operation recovers gold by processing tailings. It will take about seven years to recover 75,000 ounces of gold and 0.5 Moz of silver.

There is also a very promising exploration project run by GoldQuest Mining Corp. (GQC:TSX.V). That is the Romero project in the southwest of the country in San Juan Province.

Unigold Inc. (UGD:TSX.V) has a very promising exploration project too, located in the northwest of the country.

And Everton Resources (EVR:TSX.V; ERV:FSE; EVRRF:OTCQX) is doing successful exploration in an area close to the Pueblo Viejo mine.

In addition to these metal mining ventures, the Dominican Republic has an excellent deposit of bauxite. This mineral can be exported to China or the United States, dependent upon market prices and the terms of the sales contract.

TGR: Do these mining firms have all of the permits that they need?

AM: They already have all the permits and licenses that they need for exploration.

TGR: What happens when they are ready to go into production?

AM: My office will support them to get any permit they need in order to advance their projects. An application for an exploitation license should be submitted, including a feasibility study proving economics and feasible and proven operations for the proposed project.

TGR: Are there environmental issues? Some local groups are objecting to problems that occurred with Barrick's operation at Pueblo Viejo. How are you dealing with those issues?

AM: All of the environmental issues at the Pueblo Viejo deposit have been addressed by the new operation. The operation is now on the right path.

TGR: What is the difference between the previous administration and the new administration regarding mining?

AM: The largest difference is the interest that the new president has in providing full support to investors. We wish to have a transparent permitting and licensing process so that foreign firms and their local partners receive all the help and cooperation from the mining department that they need.

TGR: Are there any new rules and regulations for mining waiting in the wings?

AM: There are no new regulations up to now, just a clear attitude to help investors.

TGR: Given some of the historical problems with natural and manmade mining disasters, why should foreign investors feel safe putting their money into firms working in your country?

AM: First of all, the Dominican Republic is a very quiet and peaceful country. It is very well organized politically and economically. It has proven time and again that it's a safe place to invest. The Dominican government is very conscientious about protecting foreign investments. We will provide full support to any investor putting capital into the mining sector, or tourism or any other economic area.

TGR: Does the government take a cut of the mining proceeds?

AM: We partner with mining firms when the deposits are government-owned. But there is no interest from the Dominican government to partner with investment in the private mining sector. We believe in free enterprise and we have mining laws that protect investors and tax mining the same as any other investment venture in the country.

We are very optimistic about our future, because even though we are a small island, there is lots of mining potential in the Dominican Republic. The ongoing operations that we have talked about have really proved that future is very exciting.

TGR: Thank you for taking the time to talk with us, Mr. Medina.

Alexander Medina is the new director of the Mining Management Office of the Dominican Republic. Trained as a chemical engineer, he was an executive with Falconbridge and Xtrata for many years before assuming his new role officially overseeing the exploitation of metal and mineral resources estimated to be worth $58 billion.

Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Interviews page.

DISCLOSURE:

1) Peter Byrne of The Gold Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Gold Report: Unigold Inc. Streetwise Reports does not accept stock in exchange for services. Interviews are edited for clarity.
3) Alexander Medina: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this story.

Streetwise - The Gold Report is Copyright © 2013 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

The Gold Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.

From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies.

101 Second St., Suite 110
Petaluma, CA 94952
Tel.: (707) 981-8999
Fax: (707) 981-8998
Email: jluther@streetwisereports.com

More Info:

This news is published on the Investorideas.com Newswire and its syndicated partner network

Publish Your News - Send a release
News now!

Get free news alerts: Sign up here

Published at the Investorideas.com Newswire - Big ideas for Global Investors

Disclaimer/ Disclosure:The Investorideas.com newswire is a third party publisher of news and research as well as creates original content as a news source. Original content created by investorideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and Linkedintoday plus hundreds of syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions, content marketing and online advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp

BC Residents and Investor Disclaimer : Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.



Free News Alerts
Email:  





TOP

Investor Ideas © 2000 - 2014 InvestorIdeas.com®, ECON

Sign up here

login | logout | about us | contact | disclaimer / disclosure |
advertise | company profile directory | partners / links |
job search | privacy policy | trade | services | sitemap |