Friday, March 15th 03:30 PM IST

Dominican Republic stops Barrick's Gold cargo to Canada

# Dominican Republic  # Gold cargo  # Barrick Gold  # Pueblo Viejo  

Dominican Republic demanded a fresh deal with Barrick and wanted the company to modify the terms of the contract,.

SANTO DOMINGO(BullionStreet): Caribbean nation Dominican Republic have stopped a gold shipment to Canada via the United States.

According to Dominican Republic customs, it has stopped a cargo of gold from Canada-based Barrick Gold's Pueblo Viejo mine from leaving the country.

The cargo was to be exported to Canada by way of the US from the freight terminal at Las Americas international airport in Santo Domingo.

Barrick confirms that a shipment of gold has been detained by Customs authorities in the Dominican Republic.

The company has provided Customs with additional information and is seeking confirmation that the shipment can resume, while further investigating the cause of the delay," the company said in a statement.

Dominican Republic demanded a fresh deal with Barrick and wanted the company to modify the terms of the contract,.

The country said the present terms were unacceptable considering the increases in gold prices since it was signed in 2006, and would introduce a windfall tax if the contract is not amended in a sensible period of time.

However, Barrick said the contract is legally binding and it has been participating in good faith discussions with the government.

The company said the project will contribute about $11bn in direct revenue to the state over the life of mine, assuming a gold price of $1,700/oz, or about 50% of the operation's net cash flows.

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