Excellent post Buckshot.

I would add that letting the companies keep their so called windfall taxes would be better for Ecuador in the long run. In a bull market Companies tend to reinvest all of their excess profits back into exploration and expansion creating more jobs and expanding the tax base.

Secondly I would think such a tax would kill the exploration companies. Who would want to take the huge costs and risks of look for something that someone else is going to confiscate when their are other more friendly jurisdictions.

The future of Ecuador's mining would be only the companies with a current profitable mining resource going forward.

I am sure Correa knows this. The question then becomes does he choose the political optics over what is best for his country.