The authorities of the Ministry of Energy and Mines (MEM) have identified a reserve of 26 million ounces of Prayed in the Dominican Republic, which, valued at the current price (1,719.1 dollars per ounce), would amount to 44,696.6 million dollars.
“We have about 26 million ounces of Prayed. That is in all the projects that are under evaluation and those that are in production”, reported the head of the General Directorate of MiningRoland Munoz.
He said that the country also has significant reserves of nickel, copper and marble, among others. “We have evaluated that, there are the rights granted for the use of this. So I think the mining it will continue to be an important engine of the national economy”, he affirmed.
The Director of Mining said that in the Dominican Republic there are also reserves of around 21 million metric tons of nickel. The country has about 152 million tons of copper. Similarly, the authorities of the Ministry of Energy and Mines have identified 276 million tons of zinc.
In the Dominican Republic, the Pueblo Viejo project is exploited, operated by the Canadian Barrick, being the mine of Prayed most important in the region. The data indicates that, during the pandemic year 2020, Barrick’s exports represented 37.5% of domestic goods exports.
In 2021, they exported about 1,500 million dollars. In addition, contributions to the treasury from 2013 to date exceed 3,000 million dollars.
The mining operation generates 2,500 direct jobs and 9,000 indirect jobs. It publishes on its website that, of the mine’s employees, 97% are Dominican, many from surrounding communities that have benefited from the investment made in improvement and development programs.
The Prayed in the market
On the behavior of the price of the Prayedaccording to the economist Henri Hebrard, due to the tension of the crisis in Europe as a result of the Russian invasion in Ukraine, we could see a rise in the prices of Prayed in international markets.
“We cannot control that, but it is in our hands that the mine (Pueblo Viejo) can be expanded to be able to reach levels higher than 900,000 ounces, which would allow each year to achieve exports of Prayed which would be around 1,700 million dollars, which would guarantee that, together with exports of other minerals, for example ferronickel, which is performing well, it can ensure that exports of mining remain above 2,000 million dollars per year,” he said.
However, the economist points out that the behavior of the price of Prayed It has been “a little disappointing” in recent months, because it was expected that, due to inflation and geopolitical uncertainty, it could reach levels close to 2,000 dollars an ounce.
He said that from the conflict in Ukraine it has been seen how the Prayed it has struggled to stay above $1,800 an ounce. “I thought that it could be kept in a range between 1,800 and 1,900 dollars an ounce, however, we see that today (yesterday) it is around 1,700 dollars an ounce,” said the economist.
He indicated that, at present, there is a less favorable panorama, because the prices are falling and the production of the mine of Prayed decreased due to delays in the expansion program. He estimated that Pueblo Viejo could have a production of more than one million ounces, because in the past it has, but now it is projected to have a production of just 700,000 ounces.
He calculated that, at the present time, a drop of 100 dollars per ounce of Prayed represents the Dominican Republic, in fiscal terms, almost 2,000 million pesos. “The impact for the Dominican Republic, taking into account the export volume of 700,000 ounces, represents a drop in exports of about 70,000,000 dollars,” Hebrard said.