The Mining Industry is Worth Gold

Ecuador’s metallic mineral wealth is one of the largest in the world. The Fruta del Norte project of Aurelian Resources has proven reserves of 13.7 million ounces of gold, and EcuaCorriente´s Mirador project has 11 billion pounds of copper. In dollars, these reserves translate to 110 billion and 100 billion dollars, respectively.

Mining benefit, however, goes beyond the simple profit that the Government can obtain through royalties, which would be established during the Constitutional Assembly. This industry generates jobs and community projects, in addition to investing hundreds of millions of dollars that can revitalize the national economy.

However, the foreign mining companies need guarantees and depend on the decisions made in Montecristi to continue operating in Ecuador.

If the new legal framework imposes excessive royalties that end the feasibility of these projects, revokes the concessions, or prohibits open pit mining, the companies will move to neighbouring countries that offer better conditions, like Peru and Chile.

The violent protests carried out by some members of the communities near the mining projects also lessen international confidence. The community members are infuriated by the apocalyptic predictions from environmentalists that ensure total destruction if mining companies are allowed to operate. The Assembly has the historic opportunity to limit the role of extremist NGOs that are internationally financed.

If Montecristi is infected with Cardondelet´s optimism, foreign mining companies will become their closest allies in this impetus to lessen poverty and end the irony of keeping communities in poverty when they are literally sitting on top of millionaire deposits of gold, silver, and copper.