DOMINICAN REPUBLIC Law and Practice Contributed by: Giselle Pérez Reyes and María Virginia Ditrén Báez, Guzmán Ariza Abogados
Given the still-developing nature of the Dominican local capital market, domestic financing plays a com - paratively limited role and is more common in the con - text of late-stage development, operational expan - sions or working capital needs rather than early-stage exploration. In sum, mining financing in the Dominican Republic is predominantly sourced from international capital providers, global stock exchanges, private investment vehicles and multilateral lenders, with the structure of financing varying according to the project’s stage of development and risk profile. 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining Domestic securities markets in the Dominican Repub - lic play a limited role in financing exploration and min - ing. The local capital market is relatively small and primarily oriented towards government bonds, finan - cial institutions, and corporate debt from established local companies. As a result, early-stage exploration companies and large mining developers rarely rely on Dominican exchanges for equity or long-term project funding. For large-scale projects, international markets also support debt financing, often in combination with project finance structures involving commercial banks and multilateral lenders. 5.6 Security Over Mining Tenements and Related Assets Under Dominican law, mining concessions are treated as real and transferable rights, and they may serve as collateral in financing transactions, subject to spe - cific regulatory requirements. Mining Law No. 146-71 expressly permits the creation of mining mortgages ( hipotecas mineras ) over exploration and exploita - tion concessions, allowing lenders to take security interests in these rights. Any encumbrance, however, must receive prior authorisation from the DGM and be registered in the Mining Registry, in accordance with Articles 89–96 of the Mining Law. In addition to the concession itself, lenders may take security over related assets, including surface rights,
buildings, processing plants, equipment, machinery, vehicles and receivables. These security interests are perfected through registration in the corresponding systems: • the Registry of Titles for real property interests; • the Movable Property Registry ( Garante Mobiliaria ) for equipment and contract rights; and • the Mining Registry for rights directly associated with the concession. In project finance structures, security packages often extend to shares of the local operating company, bank accounts, off-take contracts and insurance proceeds. Share pledges are governed by the Commercial Code and perfected through endorsement and registration before the Chamber of Commerce and Production. Foreclosure on mining concessions requires regulato - ry oversight, as the State must approve any transfer or assignment of concession rights. As a result, enforce - ment actions must comply with both the general rules on secured transactions and the administrative proce - dures governing changes of control over mining rights. The State may refuse transfers to entities that do not meet the legal and technical qualifications required of concessionaires. In summary, mining concessions and associated assets in the Dominican Republic can be pledged as security, but such arrangements are subject to man - datory governmental approval, specialised registra - tion requirements, and administrative constraints on enforcement and transfer. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector Over the next two years, the Dominican Republic’s mining sector is expected to evolve through a com - bination of regulatory modernisation, strategic focus on critical minerals and continued strengthening of ESG standards. A key development will be the government’s ongo - ing work to update Mining Law No. 146-71, aimed at modernising concession procedures, clarifying fiscal
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