Dominican Republic halts GoldQuest gold-copper project after protests

Dominican Republic President Luis Abinader has ordered a suspension of all activity at GoldQuest Mining’s (TSX-V: CQC) Romero gold-copper project after mass protests over environmental risks

Thousands of demonstrators marched about 20 km on Sunday through San Juan province to the Sabaneta Dam, a critical water source they fear could be affected by the proposed mine. Abinader said late Monday his government had “listened with attention, respect and responsibility” to those concerns and would halt all related work in the country’s west.

“When citizens express worries and concerns, our duty is to act with caution and transparency,” Abinader said, adding the project remains in the environmental assessment phase despite exploration concessions granted in 2005. 

The suspension underscores mounting social pressure on mining projects in the Dominican Republic, where communities are increasingly weighing economic benefits against risks to water and agriculture. Mining contributes about 2% of the country’s GDP and competes with tourism and farming for land and resources.

GoldQuest didn’t immediately respond to MINING.COM’s request for comment after the order, though earlier Monday it said it acknowledged the demonstrations, added it remained committed to transparent development.

Shares of GoldQuest were unchanged at $1.61 in Toronto trading Tuesday, valuing the company at about $615 million. The Canadian Investment Regulatory Organization halted trading in the company’s shares midday Monday after a drop of more than 19%.

Regional trend?

Local opposition remains firm. Ruben Moreta, a leader of a water protection movement, warned protests would continue without government action and said a broad cross-section of society joined the march, including teachers, doctors and farmers who fear potential contamination of farmland.

The move reflects a broader regional trend where governments are increasingly responding to grassroots pressure, as seen in Panama’s closure of First Quantum Minerals’ (TSX: FM) Cobre Panama mine following sustained nationwide protests, highlighting how social licence can decisively shape the fate of major resource projects.

The Dominican Republic is not foreign to mining. Pueblo Viejo, Latin America’s largest gold mine owned by Barrick Mining (TSX: ABX) (NYSE: B), has been in operations since 2012. The mine is undergoing an expansion project intended to extend its mine life beyond 2040.