In 1971, the Dominican Republic Congress approved Law No 146-71 to provide a framework regulation for mining activities by setting rules for assigning of mining rights and the development of mining activities in the country. This law also describes taxes and the royalty applicable to mining activities.
Particularly, Law No 146-71 establishes that mineral substances belong to the State. Thus, the government may grant the right to explore, exploit or process these substances through concessions or contracts. Mining concessions may not be granted to foreign governments, either directly or through natural or legal persons.
Further, this law indicates that minerals exploration, exploitation and beneficiation are public utility activities. According to article 17 of Law No 146-71, the government has the power to declare a specific mining zone as a fiscal reserve for the exploration and evaluation of minerals, for the establishment of exploitations through special contracts, or for other state interest’s reasons.