 1.1 LEGAL BASE AND BACKGROUND |
The Corporate Mining Unit (Unidad Corporatina Minera - UCM) was created by decree of the Executive Power No. 613-00 on August 25th 2000, as an official institution, with administrative autonomy attributed to the Executive Power, and with the mission of following and acting as an operative counterpart in the activities of mining companies and projects where the State participates as an investor.
The Dominican Government has given high priority to the mining industry, since it constitutes an important part of the economic development of the country; as long as it is done respecting the environment and within the framework of sustainable development.
The mining investment has a very special interest; since it constitutes one of the more effective instruments the Dominican Government has in the battle against poverty.
UCM has managed to place itself and create leadership within everything related to the promotion of investment in the mining sector and in the representation of the Dominican State in mining contracts.
Before the creation of the UCM there was no specialized organism representing the Dominican State in contracts regarding mining commodities and projects; this situation produced a distancing between the official sector and the investors, as much in the economic as in the technical aspects. The General Directorate of Mining (Dirección General de Minería- DGM), that historically has been the normative and regulating institution, did not have this ability.
Currently, the governmental mining sector presents two institutional aspects: a normative and regulating aspect represented by the General Directorate of Mining (DGM), which administers mining rights based on Mining Law 146, and a development and mining investment promotion aspect and contractual representation aspect, represented by the Corporate Mining Unit.
Also, along with the creation of the Corporate Mining Unit, in other words, in decree 613-00, the National Council for Mining Development was also created, to act as a coordinator between the mining sector and other government institutions.
The President of the Republic heads this Council, which is also composed by:
· The Secretary of Industry and Commerce, who presides in the absence of the President of the Republic,
· The Secretary of State of the Environment and Natural Resources,
· The Judicial Consultant of the Executive Power,
· The National Organizer of LOME IV,
· The General Director of the Industrial Development Corporation,
· The President of the Mining-Petroleum Chamber,
· The President of the Dominican Geology Society,
· The General Director of Mining, who will act as Secretary; and
· The Executive Director of the Corporate Mining Unit, who will act as Alternating Secretary
Pueblo Viejo´s Mine , Property of Rosario Dominicana, S. A
| 1.2 GENERAL OBJECTIVES OF THE INSTITUTION |
The unit's functions include the search and promotion of clear, credible and guaranteed private investment mechanisms, to reactivate in equal terms the mining commodities and projects where the State has some participation as an investor.
The General Objectives of UCM are the following:
· Promote and expand national and foreign mining investments
· Organize and participate in seminars, fairs and exhibitions
· Promote inter-institutional agreements
· Promote cooperation agreements between countries
· Compile and publish promotional material related to investment areas in mining activities
· Offer technical and environmental assistance to investors
· Assist national and foreign investors
The Specific Objectives of the UCM, included in the Decree of its creation, are the following:
· Select, through clear, credible and guaranteed procedures, an operating partner to develop and operate the Pueblo Viejo mine
· Assume the monitoring and adequate implementation of the leasing contracts of its mining properties in the Corporation of State Companies (Corporación de Empresas Estatales - CORDE)
· Create and promote the Mining Fund
· Represent the Dominican State in the contracts related to the Mining Parks
· Represent the Dominican State in all the rights it has regarding the bauxite deposits in Cabo Rojo coming from the old "Cabo Rojo" concession made by the Alcoa Exploration Company.
· Represent the Dominican State in the actions it takes in the Minera Dominicana El Yujo Company.
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| 1.3 ORGANIZATIONAL STRUCTURE |
The highest authority within the Corporate Mining Unit (UCM) is the Executive Director, who is named by Decree of the Executive Power. The Executive Director of the UCM, reports directly to the Executive Power. The Judicial Consultant and the Administrative Assistant report directly to the UCM Executive Director. The Corporate Mining Unit also counts on Consultative Council that is composed by:
The General Director of Mining
The Central Bank Governor
The Secretary of State of Finances
The Executive Director State Council on Sugar
The Director of the Industrial Development Corporation
UCM has two Sub-directorates and various departments:
 A. Technical Sub-directorate: |
A.1 Project Evaluation Department
A.2 Geology of mines Department
A.3 Information Department
A.4 Evaluation and Environmental Control Department
A.5 Geological-Environmental Laboratory:
A.5.1 Environmental Impact Studies Unit
A.5.2 Laboratory Unit
A.5.3 Environmental Rules and Controls Unit
| B.Administrative and Contract Supervision Sub-directorate: |
B.1 Accounting Department
B.2 Contract Supervision Department
B.3 Mining Fund Department
B.4 Security Department
B.5 Personnel Department
| 1. 4 GOALS |
One of the intended goals of the Corporate Mining Unit (UCM) is to push for the development of the Mining Sector and obtain a participation of 5% from the GDP, for which it is making great efforts to promote the following investment areas:
| 1. Metallic Minerals: |
UCM has successfully finished a bidding process on the Pueblo Viejo mine, property of the Rosario Dominicana Company, and is in the process of negotiating a contract that must be ratified by the National Congress of the Dominican Republic.
There exists an important potential for the exploration of Metallic Minerals (gold, silver, copper, zinc, molybdenum, etc.) in the areas of the Los Ranchos Formation, a strip of bimodal, volcanic rocks.
| 2. Industrial Minerals: |
UCM is convinced of the great potential the Dominican Republic has in the field of industrial minerals. The investment areas of greatest transcendence are the following:
Dry Quarry Additives:
The Dominican Republic presents a geological environment and competitive advantages in relation to other countries in the area.
Clays:
The Dominican Republic has various clay deposits in known regions, such as Río San Juan, Cotuí and Constanza.
Salt and Plaster:
The salt and plaster deposits in the Salinas-Canoa-Tamayo zone, and in others located in the southeastern region of the country, present an attractive view for investments in this field.
Marble and Calcareous Minerals:
The marble in Samaná, Caballero and Vicente Noble are potential geological mines, which are very important for investment in the Dimensional Stone business.
Coral Stone:
The coral stone that occupies the southeastern part of the country is a stone with a very high international demand, and its use is ever more frequent, so investment in this type on venture has very good yield.
Caliza Coralina
| 3. Industrial Mining Parks: |
Industrial Mining Parks (Parques Mineros Industriales -PMI) are an application of a regional development model based on the mining industry, which has been implemented in other countries (Mining Clusters). In our case, the infrastructure is fundamentally oriented towards industrial minerals. The idea is to confine in one area, with the fiscal structure of a duty free zone, all activities involving the transformation of industrial minerals. This of course, does not include mining concessions.
The advantages of the park are the following:
· Attractive Fiscal Structure, in the duty free zone style
· Use of the park's facilities (i.e. use of the dock)
· Environmental Control with periodic measurement of the emissions
· Support and assistance on behalf of UCM and DGM. |
