The battle between Barrick Gold and dominican goverment..and their negotiators

Losses by Barrick Gold increase value of Pueblo Viejo
Issue of judicial security divides business community

SANTO DOMINGO. The exploitation of the gold mine which the Barrick Gold mining company is administering in Dominican territory is one of the businesses which the Canadian company is betting on to improve it earnings, given the decrease in earnings in 2012 and the demands of investors for a change in the gold industry.

Peruvian miners in front of Barrick Gold installations in Cotui, Dominican republic


In a report published by the mining company on its webpage, dated 14 February, which contains the results of the company's behavior in 2012, the company reports a net loss of US$3.06 billion (US$3.06 per share) in the fourth quarter of the year, "including a US$4.2 billion after-tax impairment charge primarily related to our copper business unit."

For all of 2012 Barrick reported a net loss of US$0.67 billion (US$670,000,000) and US$0.66 a share, "including after-tax impairment charges of $4.4 billion." (NT: "Adjusted net earnings of $3.83 billion ($3.82 per share) were the second highest in the company's history.

The high costs, beyond what was foreseen, are taking the company to the decision to sell Barrick Energy and not expand the copper mine at Lumwana, Zambia.

In the meantime, the company is focusing on the 1.5 million ounces of gold of the average annual production of Pueblo Viejo and Pascua-Lama. Pueblo Viejo, in the Dominican Republic has gold reserves of 25,300,000 ounces and is one of the largest undeveloped gold deposits in the world. Pascua-Lama, on the border between Argentina and Chile has proven and probable reserves of 17.9 million ounces of gold.

in other words, Dominican republic have to be the one that help Barrick Gold to avoid the same net  loss at ANY COST.That includes you , me and everything you know so far in DR.




"We have a number of world class mineral resources around the world that have considerable economic potential, but at the present time they do not comply with our investment criteria. In the meantime, we are going to spent the minimum amount of capital needed to maintain the economic potential of these assets," says the Barrick report by Jamie Solkalsky, the CEO of Barrick Gold Corporation.

On 27 February, President Danilo Medina issued a "last" call for Barrick Gold to sit down with the government to revise the fiscal aspects of the contract for the exploitation of Pueblo Viejo, since he considers the current scheme of distribution of the income from the sale of gold to be "unacceptable."


The mining company has stated its willingness, but says that it faces limitations due to the commitments undertaken with the institutions that are financing the project.

The specialist in mediation and a negotiation consultant, Nelson Espinal Baez, said that the fact that the mining company lowered its global earnings "is not an objective criteria for opposing a renegotiation (process) with the Dominican government."

this is the profile of the negotiator from barrick gold:Nelson Espinal Báez


Associate MIT-Harvard Public Disputes Program at Harvard Law School. Abogado, Mediador y Consultor en Negociación
Dominican Republic Alternative Dispute Resolution
Summary

CIC - Cambridge International Consulting,Abogado, mediador, consultor en negociación, árbitro y profesor universitario, Associate MIT- Harvard Public Disputes Program at Harvard Law School, consorcio universitario formado por la Universidad de Harvard y el Massachusetts Institute of Technology (MIT) para la investigación y desarrollo de la teoría y la práctica de las negociaciones complejas, la mediación de conflictos públicos y la construcción de consenso en políticas públicas.

Do you think the government officials have such an expert in negotiations as well?



And this is the expert from the government..


who would you choose?


Vincho Castillo advierte Barrick debe medir consecuencias ante negación
Publicado por Noticias SIN en marzo 7, 2013

SANTO DOMINGO, República Dominicana.- El director general de Ética e Integridad Gubernamental, Marino Vinicio Castillo (Vincho), advirtió este jueves a la Barrick Gold, medir las consecuencias que pudieran desprenderse ante la negación al diálogo con el gobierno, el cual busca una salida racional y equilibrada a favor de los intereses colectivos de la nación.

Castillo se refirió al tema durante su discurso en acto de juramentación de la Comisión de Ética del Ministerio de Hacienda, al explicar que se han analizado las variables del precio en el mercado del oro desde el momento en que se estableció contrato y cómo han surgido factores de rigor que exigen una revisión justa y equitativa, porque se han transformado los beneficios.

“El precio del oro se ha enmendado y se ha encargado de desquiciar el contrato, de desajustarlo, de hacerlo inicuo; razón por la que se le ha pedido tomar medidas razonables en base a la equidad, de lo contrario, creo que el gobierno debe estar pensando en las consecuencias y en la ley para fijar los impuestos”, apuntó el funcionario.


En el acto estuvo presente Simón Lizardo, ministro de Hacienda quien también destacó la importancia de reviste el cumplimiento ..

I am sure we will see a nice fight but at the end, we hope we will see the Dominican people wining..