Barrick announces tentative deal at Pueblo Viejo

Wed May 8, 2013 6:36pm EDT
 
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May 8 (Reuters) - Barrick Gold Corp said on Wednesday that it has reached a tentative agreement with the government of the Dominican Republic on the Pueblo Viejo mine.

The company said it now expects about half of the cash flow from the mine to go to the government from 2013 to 2016. At a gold price of $1,600 per ounce, total tax revenues over that period would be about $2.2 billion, it said.

Dominican President Danilo Medina had demanded that the company renegotiate its operating contract, and threatened to clamp a windfall tax on profits if it was not modified.

Pueblo Viejo, one of world's largest new gold projects, is jointly owned by Barrick and Goldcorp Inc.