chapter  28
8 Pages

Key Challenges in India

In 1979 the Dominican Central Bank purchased all foreign-held shares in the then Pueblo Viejo mine and ran the operation until the late 1990s. During this time, Pueblo Viejo produced 5.3m ounces of gold and 24.4m ounces of silver in 24 years of production. The project sponsors are Barrick Gold Corp and Goldcorp Inc, both with significant experience of developing and operating gold mines. The extended historical activities at Pueblo Viejo were one of the main challenges facing the sponsors and lenders, as the environmental legacy issues were significant. Pueblo Viejo will employ ca. 3,500 people at its peak and will potentially generate billions of dollars for the state over the life of the operation. These economic benefits are affected by the prevailing gold price and derived through the special lease agreement signed between the state and PVDC. The mine plan for Pueblo Viejo results in potentially significant free cashflow generation during ramp-up/the early operational period.