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Article

28 Feb 2013

Author:
Alexandra Demo-Dananberg, Business News Americas

President calls Barrick's Pueblo Viejo contract "unacceptable," suggests windfall tax [Dominican Republic]

The debate over...Barrick Gold...contract for the Pueblo Viejo gold mine in the Dominican Republic has reached the presidency, with President Danilo Medina issuing a "final call" to the company to modify the terms of the contract that are, in his estimation, "unacceptable." "The current scheme of revenue distribution, following the increase in global gold prices, is unacceptable,"...Medina said that he is calling on the company one last time "to agree to review the contract's fiscal terms...Barrick...maintained its previously expressed view that the contract is legally binding, though added that the company "has been engaged in good faith discussions with the government..."...Medina said that if a mutual agreement is not achieved in a "sensible" period of time, he plans to submit a bill to congress to establish a windfall tax for companies that export minerals from the country. [refers to Goldcorp]