Ecuador plans mining overhaul; wants new deals
• Reuters
• Tuesday January 29 2008

By Alonso Soto
QUITO, Jan 29 (Reuters) - Ecuador plans to revoke most mining concessions, but preserve those held by the industry's biggest players in a move to push them to renegotiate their deals, top government officials told Reuters on Tuesday.

The assembly rewriting the country's constitution is analyzing a government proposal to issue a decree to boost state control over the nascent gold, silver and copper mining sector.

A copy of the proposal obtained by Reuters calls for the takeover of most of the country's 3,000 concessions, but would exclude companies that have big investments in exploration. The document does not detail a capital amount.

"The main companies will not have any problems," a top government official close to mining policy decisions told Reuters, asking not to be named.

President Rafael Correa, a left-wing economist and ally of Venezuelan President Hugo Chavez, has vowed to boost the government's role in natural resource extraction to better distribute wealth in the poverty-stricken country.

Last week the government revoked 587 mining concessions held by companies that failed to pay annual fees, sparking fears among investors of greater state intervention in a sector that is largely still just exploring for precious metals.

Another official close to Correa said the decree would exclude companies like Aurelian Resources, Corriente Resources, Iamgold Corp., Dynasty Metals, Coastport Capital and International Minerals Corp.

The official said the decree's goal was "to force companies that have invested to come in and talk."