Exploration intensifies in the Dominican Republic

The mining sector has achieved considerable importance in the Dominican republic during the last decade. It offers extensive development potential through its diverse and sizable resources.

Based on studies conducted by national and international institutions, and the ongoing Dominican Geological Survey, the Dominican Republic is known to possess exploitable deposits of gold, silver, ferronickel, bauxite, copper, tin marble, salt and gypsum.

Significantly, all exploration efforts have recently been intensified. There have been preliminary indications of the existence of oil deposits, but their potential has not yet been determined.

Likewise, three major mining concerns Mitsubishi Corp. of Japan, Canyon Resources (NASDAQ) of Denver and Battle Mountain Gold (NYSE) of Texas have signed contracts with the government to evaluate and develop precious and base metal deposits. Recent newcomers show that the Dominican government is keenly interested in developing the minerals industry and encourage the international mining industry to take a look.

Recently, Falconbridge, which has been producing ferronickel since 1972 through its subsidiary Falconbridge Dominicana, initiated strong mineral exploration campaigns and ecological studies that would enable the company to continue mining operations here well into year 2000.

In 1990, at its nickel laterite deposits in Bonao area of central Dominican Republic, the company produced 63 million lb. of nickel in ferronickel, exporting some 67 million lb. (Production in 1991 totaled 64.1 million lb. and the company exported 61.8 million lb.) The Dominican Republic government received during 1990 the sum of US$73 million in income tax from Falconbridge Dominicana.

At the Pueblo Vicjo gold mine, rate of dore production and exports continued to decline in 1990, reflecting the near end of the gold ore reserves in the upper oxide zone. Total gold production in 1990 was 138,638 troy oz., down from over 400,000 during peak production years during the early 80s. The construction of the plant to process transition ore deposits is under way and mining is expected to produce some US#124 million during 1992 and 1993. Since its beginning of operations in 1975. Rosario has contributed more than US$2 billion in revenues to the Dominican currency system. The mine was acquired in 1980 by the Dominican government from Rosario Resources and J.R. Simplot.

In a second phase of development of the Cotui gold reserves, the exploitation of the underlying sulphide ore would be expected to produce some US$180 million per year during the mines more than 30-year life span. This long period of active gold mining in the sulphide deposit is possible because the ore reserves are well above 100 million tonnes. Now, Rosario Dominicana is seeking proposals to contract the company to engage in the development of the sulphide project to extract gold and silver from suphide ore. At the Cabo Rojo-Pedernales bauxite deposits, some 85,000 dry tonnes of bauxite, down from 170,000 tonnes in 1989, were mined for the government of the Dominican Republic by Ideal Dominicana. Some 63,500 dry tonnes were exported, producing revenues of US$1.15 million. The output of bauxite is sold to Alcoa, former operator of the bauxite mine. Despite proven reserves estimated at 15 million tonnes, bauxite quarrying was suspended in early 1991 for ecological reasons. Ideal continues to mine limestone at the same site. Limestone production last year was 350,000 tonnes, and 221,000 tonnes were shipped out, producing near US$1 million in 1991. Ideal expects to increase this total.

At the salt and gypsum deposits in Barahona, in the southwest, the government-operated state corporation Gorde hopes to increase the total amount of gypsum-containing host rock extraction from 73,000 tonnes in 1990 to 260,000 tonnes in 1991. New equipment being installed will increase production capacity to 500,000 tonnes in order to fill local and international demand. Salt production is also expected to increase, from 180,000 quintals in 1990 to 300,000 in 1991.

From the Santo Domingo News newspaper.