Rare earths in the Dominican Republic: the strategic mineral that could reshape the mining investment landscape in the Caribbean.
The energy transition and digitalization have made rare earths elements (REEs) strategic, a key input for permanent magnets, wind turbines, electric vehicles, advanced electronics, and defense.
As a result, the Dominican Republic has entered the radar for three concurrent reasons: geological potential in the southwest of the country, a legal framework that allows for fiscal reserves and special contracts, and pro-investment political signals, including the creation of a state-owned mining company.
With these elements, the country is shaping a narrative distinct from that of traditional metals: it can move from exporting geological knowledge to structuring bankable projects.
The technical basis exists. Peer-reviewed studies report significant REE content in karst bauxites from the Sierra de Bahoruco, with total concentrations between 0.07% and 1.40% by weight, and yttrium between 0.01% and 1.48%, depending on the deposit and mineralogy.
They are not equivalent to reserves, but they do justify exploration campaigns and metallurgical testing aimed at recovering neodymium, praseodymium, lanthanum, and other elements critical to the energy transition.
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The new geopolitics of critical minerals
Institutions moved to the rhythm of geology. Through Decree 430-18 , the Executive Branch declared the Ávila fiscal mining reserve in Pedernales for the exploration and evaluation of rare earths through direct state management or through special contracts, based on Article 17 of the Mining Law.
In 2024 , the Dominican Mining Company (Emidom) was created , with a mandate to conduct feasibility studies, partner with, and conduct strategic mineral projects.
The public discourse set a validation horizon. In February 2025, a preliminary estimate of “around 100 million tons ” of rare earths was reported, subject to technical confirmation.
The Ministry of Energy and Mines (MEM) has indicated that the formal determination of resources and reserves will require additional campaigns and geological modeling, with the goal of having results by 2026 ; in that phase, the U.S. Army Corps of Engineers (ERDC) provided scientific assistance.
Legal framework and permits
Law 146-71 (Mining Law) recognizes state ownership of mineral substances: the right to explore or exploit is acquired through concessions or contracts with the State; the law defines stages, deadlines, disqualifications, and sanctions, and empowers the Executive to reserve areas for public interest.
The regime is complemented by Environmental Law 64-00 , which requires prior authorization, impact assessment , and participation mechanisms (information, hearings, and consultations) for high-impact projects. The Dominican Republic also implements the Extractive Industries Transparency Initiative (EITI), which strengthens transparency and predictability.
Towards a concept of “strategic minerals”
In 2022, a regulatory proposal was discussed that introduces the category of strategic minerals declared by decree (with rare earths as an example) and reorganizes licenses, concessions, and special contracts under greater regulatory powers of the MEM.
Although full adoption is pending, the signal points to prioritizing critical substances with flexible contractual arrangements and reinforced oversight.
Geopolitical and market window. The global search for alternative suppliers to Asia (due to supply chain resilience, traceability , and national security) opens up an opportunity for the Dominican Republic.
The creation of Emidom and the collaboration with U.S. technical institutions are signs of a strategic alignment that could facilitate offtake agreements and financing if studies confirm the viability of the subsoil.
Regional competition and complementarity
Jamaica has stepped up its commitment to recovering REEs from bauxite waste (“red mud”), with calls to identify technology and capital partners by 2025.
Consolidating projects in the basin would allow for specialization (primary extraction in the Dominican Republic and waste recovery in Jamaica) and integrated logistics, reducing supply risks and unit costs.
Key risks and enablers. First, metallurgy : moving from promising ore grades to economically viable recovery requires pilot testing, reagent selection, and separation plants, with safe waste management (including the naturally occurring radioactive fraction of certain carrier minerals).
Second, social license : recent experience with metal projects demonstrates that anticipating impacts, providing adequate compensation, and maintaining ongoing dialogue are crucial to viability.
Implications for the investor
In the short term ( 12-24 months ), the catalyst is the validation that the Ministry of Energy and Mines (MEM) has scheduled. If resources and beneficiation processes are confirmed , the country could activate special contracts in the Ávila reserve and adjacent areas, with Emidom as the facilitator.
Framework 146-71 provides certainty (concessions and contracts); Framework 64-00 mandates environmental processing with participation and monitoring; and the EITI adds transparency.
In parallel, a design of incentives for local linkages (engineering, laboratories, logistics, maintenance) would multiply the impact of each dollar invested.