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TORONTO.-. Barrick Gold Corp. president and CEO Jamie Sokalsky on Wednesday revealed that the company is in a dialogue with Dominican Republic’s authorities over the Pueblo Viejo mining contract, local media report.

In a statement, the executive said the net profits for Barrick, the world’s biggest gold producer, were US$ 847 million in the first quarter, or 18.5% lower than the same year ago period.

Barrick said its 60% stake in Pueblo Viejo earned it 96,000 ounces of gold during the quarter. The remaining 40% is held by Goldcorp.

“We shot ourselves in the foot because we could have stayed put in a great financial position, not started Pascua-Lama, not started Pueblo Viejo,” Sokalsky said, referring to the company’s flagship projects in Chile and the Dominican Republic, respectively. “Today I think your treasury would be ten, fifteen billion dollars better, with an easier management job. Our political problems would have been minimized to a much more manageable dimension.”

According to the Canadian company, the Dominican government has asked "to accelerate and enlarge its share of Pueblo Viejo’s significant profits."

"The company, while it reserves its rights under the Special Lease Agreement that cannot be altered unilaterally, continues to maintain a dialogue with the government in an effort to reach a mutually acceptable outcome."

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29 comment(s)
Written by: josean, 25 Apr 2013 7:28 AM
From: United States, Guillermo President 2016 Because Our Future Depends On It!

Stop the BS and Nationalize the Neo-Liberal Bastards!

Written by: Ricardolito, 25 Apr 2013 7:54 AM
From: Dominican Republic, Zona Colonial
Fortunately even the Government of the DR realises that anytake over of the assets of Barrick without full payment amounts to nothing short than theft and would jeopardise future investments ..We are not a communist country here in the DR .
A proper settlement will be found for the good of all .
Written by: josean, 25 Apr 2013 8:00 AM
From: United States, Guillermo President 2016 Because Our Future Depends On It!

Are you so stupid that you think only "Communist" countries Nationalize!


You don't have to answer its a rhetorical question!

Written by: juanb, 25 Apr 2013 8:29 AM
From: Dominican Republic

I find it amazing, how in spite of all the outrageous acts of which our government is guilty, that a few rabble rousers are able to persuade the sheeple that all the problems in this country stem from Barrick Gold. It's too bad the sheeple don't go out and demonstrate and complain about how we are shafted by those in office like they do against Barrick.
Written by: juanb, 25 Apr 2013 8:31 AM
From: Dominican Republic

The problems in this country are not the Metro or the Barrick contract. They are merely symptoms of the disease.
Written by: ScandiViking, 25 Apr 2013 8:40 AM
From: Norway
Ricky says
We are not a communist country here in the DR . In another article you described DR to be a lawless banana republic. Which is better????

BG exploited the opportunity to sign a contract 97/3 in favor of BG, because "lawless officials" sold out the country just to line their own pockets. If this is not a crime to be rectified then there is no justice in this world.
This is how BG and all other big corporates are dealing around the world with "lawless governments" just to enrich themselves
Written by: ohhhvictor, 25 Apr 2013 8:41 AM
From: United States


Cotui was nationalized before and you got horrible results.But not as worst as it is now.

Historically speaking countries are VERY bad managers of public properties: It happens to all Trujillo's factories and it happens to everything the communist `countries try to nationalize: just horrible results..

The colombian experience is that mining can happens under strict regulation , reforestation and area delimitations by a private company..And a third company inspecting if the second company is doing their job properly..

Barrick Gold is very close to lose pascua Lama , not to mention pueblo Viejo mine..Now the ceo of BG is coming like an innocent lamb...But without any remorse for the tons of cyanide they pour on the rivers and damn of DR and without a cleaning plan either..

What a bunch of crooks..!
Written by: dreadlocks, 25 Apr 2013 8:51 AM
From: United States
it is high time that the DR understands that when you allow foreigners to operate on your territory, you must invest something yourself, in order to have some sort of a say. the DR has a simplistic view of foreign investment. just allow foreigners to come in, bring some money, and give them some scraps. the DR does not want to put up any of its own money, and, therefore, has no say in anything. if it had owned a piece of Barrick, the negotiating would have been different. it is just like the cruise port at Maimon. the DR does not have any money tied up in it. it is all Carnival. so, they will do what they want, when they want, and nobody can do dick. they will hire whoever they want, they will rent port space to whom they want, and control everything. just like the hotel industry. all foreign hotel chains, hiring foreigners, and giving Dominicans jobs as maids and gardeners. remember the Golden Rule

he who has the gold makes the rules.
Written by: juanb, 25 Apr 2013 8:52 AM
From: Dominican Republic

Here is ohhhhdoody to show us what is meant by "It takes one to know one. "
Written by: josean, 25 Apr 2013 9:44 AM
From: United States, Guillermo President 2016 Because Our Future Depends On It!

Saudi Arabia's NATIONALIZED ARAMCO is falling apart just like Chile's Largest Copper mine and one of the Largest in the world!

Written by: Juansantodomingo, 25 Apr 2013 10:37 AM
From: Dominican Republic
Here is the direct Quote of Barrick's Chairman to his shareholders at their Annual General Meeting:

“Did we know then that we were going to run into every year, more and more difficulty?” he said. “Did we know then that the same governments who practically begged us to invest in their remote areas to provide jobs, to provide opportunities for education, to provide foreign exchange, to provide for taxes, were going to be changed and newcomers would say, ‘who are these foreigners? Why would they take our gold away from us?”

Here is another quote:

“If it were my money I’d stop it right now, because the world does not need an extra gold mine right now, and I would just focus on getting the best out of my existing operations and paying down debt,” said George Topping, an analyst with Stifel Nicolaus in Toronto.
Written by: lmartinez, 25 Apr 2013 11:18 AM
From: United States, NYC
this is all bullshit , medina is sooo full of shit he was saying that barrick was doing an injustice to dr , but he has done nothing to stop it , mucho blablablah , i hope that one day soon they nationalize the damm mine . medina is a coward he is affraid that leonel would go to jail if he starts to cancel contracts that were made by leonel and his cronnies . and the senate
Written by: Gringo_1, 25 Apr 2013 11:58 AM
From: Dominican Republic, Bring DT Forum Back
Barrick will throw the dog a bone and then back to business as usual. End of story.
Written by: synapse, 25 Apr 2013 12:02 PM
From: United States

Josean how can you of all people have any faith that this Banana Republic can raise capital and do a better job than Barrick. Are you on stupid pills?

C'mon get real, the DR can't even pay its electric bill let alone run its own mining company. No one will lend the DR a dime anymore and no private capital would be its partner for less than Barrick's deal.

Barrick is the victim of disinformation by Medina and the Media that needs a bad guy to blame for all the misery in the DR right now. I recommend that you all watch Agenda Economica and watch recent editions on Youtube so you ignorant people can get the facts and realize that the DR has a more than fair deal with Barrick and couldn't ask for more.

Put a helmet on and get in the game you morons!
Written by: josean, 25 Apr 2013 12:42 PM
From: United States, Guillermo President 2016 Because Our Future Depends On It!

Josean how can you of all people have any faith that this Banana Republic can raise capital and do a better job than Barrick.


Yo, Genius which was the better and fairer contract 53/47% or the current 97/3%?

Written by: synapse, 25 Apr 2013 3:43 PM
From: United States


I am amazed that an intelligent person like you has taken the kool-aid that has made everyone ignorant of the facts.

You do not have the facts my man and you need to get them quick before you continue to spread this crap.

You and all the other ignorants need to go to Youtube and search:
Agenda Economica #1449 Parte 1 de 4
and listen to episodes 2,3, 4 too to get the logical explanations that defend the Contract for its fairness and dispute this witch hunt being perpetrated by all of you ignorant people.
Written by: tomito, 25 Apr 2013 4:59 PM
From: United States

I think we could get a better deal than the actual one by modifying the contract, however the notion that people are trying to portray in the media, that the DR would only get 3% of the money is a myth at best and only temporary.

After the investment is recovered plus 10% which could happen in a couple of years due to the high prices of gold, the DR is supposed to receive about 50% in ISR (income tax) and other export taxes for the life of the mine. Considering that the price to extract an ounce of gold is about 300 dollars and just for the sake of argument, the price of gold remains at an average of 1700 dollars an ounce for the life of the mine, the DR should be getting more than 700 million dollars a year and that's not even taking into account other metals like silver, bronze and copper, which could bump the final number closer to 1 billion dollars a year. To put that in perspective for the Metro fans here, the 2 lines cost about 1.6 billion dollars combined.
Written by: tomito, 25 Apr 2013 5:00 PM
From: United States
In other words the contract is not as bad as it's being portrayed but the DR could be in for a much better deal just by doing away with it, by getting a loan secured by the gold itself, pay Barrick the money they invested and send them packing, then just hire people with the expertise to do the job.

I would dismiss the signals to the international investors by this move, and the likes of Standard and Fools, it's been done before, after all the whole wolrd will continue to see the DR as an investor friendly country for multinationals if they continue to bribe the government, with an iron clad proven record over the years, they will just tell Barrick to suck it up and take one for the team.

I'm in favor of 50-50% deals and even 40-60% deals favoring investors but only when it involves exploration when they risk their capital at no expense to the local government if they find nothing, in this case everybody knew the gold was there.
Written by: tomito, 25 Apr 2013 5:00 PM
From: United States
Being that said, I think this mine should be nationalized so that we can keep all the profits and just hire the engineers, and technicians with the proper expertise. I know we had a bad experience with the mess left by Rosario but believe it or not, there are other government institutions that have proven efficent over the years, Ex. Banco de Reservas. With a joint venture with private investors with minimal stake (just to make sure proper supervision, accounting and disclosure is done), I think the nationalization venture would prove the best over time and instead the DR could be getting about 2 billion dollars a year in extra revenue, that's enough to pay the entire country's debt in about a decade.

Going back to Barrick's contract, an in depth audit done by a reputable firm is in order to find out how much the company really invested and not just take their word for it, the same should be done on an on going basis to determine how much they are really exporting each month.
Written by: josean, 25 Apr 2013 5:10 PM
From: United States, Guillermo President 2016 Because Our Future Depends On It!


Grand Slam, in tied game, with two outs, on a 3/2 pitch, in the bottom of the ninth 9th, in the 7th game of the World Series!!!!!!!!!!!!!!!!!!

Written by: tomito, 25 Apr 2013 6:44 PM
From: United States
Well my friend Josean, I won't hold my breath for the mine being nationalized, I support Danilo but I have to admit he does not have the hanging material to do so (I'd be gladly surprised to the contrary). It takes someone like Correa or Evo to do this (even though i'm not a fan of either of these two for other reasons).

Both Hippo and LF contracts were bad, I just cannot understand how you let someone else extract your gold, silver, copper and bronze when you know exactly where they are at such terms. That's like me having a coffer with 1 million dollars in my backyard and telling someone else to go ahead and get a bulldozer, dig it up and then split the million 50-50, when I could just hire the bulldozer myself and keep the whole thing.

Like I said the contract would have been great if it involved exploration at no cost to the government, like other mining projects in that phase taking place in DR right now, not for a mine that was well known.
Written by: tomito, 25 Apr 2013 6:51 PM
From: United States
The government is going to have to fight tooth and nail with Barrick, the world is watching, they know it and will try to prevent a domino effect worldwide. Pueblo Viejo is the biggest gold mine in the Western Hemisphere and one of the biggest in the world, with proven gold reserves of at least 24 million ounces of gold (some estimates put it a 40 million), not even the great mine of Pascua Lama between Chile and Argentina comes close to it.

At the end of the day Danilo will get a bigger chunck for the country which will please most people in DR (not me unless nationalized) who never really knew what was at stake.
Written by: synapse, 26 Apr 2013 12:24 AM
From: United States

You people that talk of Nationalizing the mine are such dreamers. The DR could screw up a wet dream and you think they could manage their own mines. What a joke and you are a bunch of fools to have so much confidence in this Mafia Banana Republic.
Written by: josean, 26 Apr 2013 12:52 AM
From: United States, Guillermo President 2016 Because Our Future Depends On It!

"I'm a dreamer, but I'm not the only one
I hope some day you'll join us
And the world will be as one"

John Lennon

Written by: synapse, 26 Apr 2013 10:22 AM
From: United States

Josean you are just ignorant .... not a Dreamer.
Written by: josean, 26 Apr 2013 12:44 PM
From: United States, Guillermo President 2016 Because Our Future Depends On It!

Can we agree on "Ignorant Dreamer!"

Written by: DRmaker, 26 Apr 2013 11:11 PM
From: Canada, North Coast DR

"Barrick will throw the dog a bone and then back to business as usual. End of story."

On point with this..................and the sooner the better!

Written by: josean, 27 Apr 2013 10:57 AM
From: United States, Guillermo President 2016 Because Our Future Depends On It!

Z101.3 FM reported on air this morning that during the last meeting of the PLD's Political Commitee Lie-onel "97 to 3%" Fernandez chastised Saint Danilo for his call to renegotiate the Barrick "Stold" contract.

The report added that after a very heated debate between Narco Lie-onel defending the contract and Saint Danilo attacking it resulted in only 8 members of the committe supporting Lie-onel out of a membership of 27.p Therefore, not unlike Miguel Vargas, although Lie-onel controls the presidency of the party he is losing support in the political committee.

Written by: josean, 27 Apr 2013 11:32 AM
From: United States, Guillermo President 2016 Because Our Future Depends On It!

Another Slap in the face of Barrick " Stold" and their Treasonous Agent Narco Lie-onel Fernandez

"Bishop Emeritus Jesús María de Jesús Moya, described as "shameful", "pyrrhic" and "detrimental to the nation", the contract between the Dominican government and Barrick Gold."

"The mocking manner Barrick Gold is taking our gold, is not only destroying the province of Sanchez Ramirez (Cotuí), if not the Dominican Republic itself" 

"The bishop emeritus of San Francisco de Macoris, was iterative in that the contract should be terminated."

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