Mining company Falconbridge Dominican (Falcondo) has plans in the coming months to expand its petroleum refinery facilities into the community of Loma la Peguera. At a cost of more than US$50 million, this expansion will help to reduce the current deficit in fuel supplies in the Dominican Republic and in particular increase supplies available in the Cibao region in the north of the country.

The market here consumes 124,000 million barrels a day. The Dominican Petroleum Refinery (Refisdomsa) produces 32,000 of those barrels with the balance being imported as a finished product. The northern region comsumes 39% of the fuel sold in the country.

Falcondo hopes to process anywhere from 13,000 to 24,000 barrels of crude, sourced from the Caribbean basin, which will result in 7,850 barrels of diesel, more than 4,000 barrels of fuel and 375,000 gallons of propane which will be availabe to the Dominican market. The Bonao location was chosen due to its location on a major highway and access to the northern region. This strategic location should result in a drop in prices due to lower transportation costs. This location also allows Falcondo to receive its crude via a pipeline starting in the port of Haina and reduce environmental risks.

The company also sells to the region excess electricity that it generates for its own use in its mining operations.