Min official: Private cos - not govt - to invest in metallic mining -
Ecuador
 
Published: Tuesday, February 12, 2008 17:32 (GMT -0400)
 
The Ecuadorian government has no plans to invest US$104bn in mining development, an official from the mines and oil ministry told BNamericas, denying reports that the government would spend the sum.
 
 "Metallic projects are in the hands of private companies, not the
 government. And the government is not the party that is going to make those investments," the official said.
 
 "Theoretically, the US$104bn in question are the metallic reserves held by companies like Aurelian, Ecuacorriente, IAMGOLD, and IMC," the official said.
 
 The reserves correspond to the Fruta del Norte and Río Blanco gold-silver deposits, owned by Canadian miner Aurelian Resources (TSX: ARU) and Arizona-based International Minerals (IMC) (TSX: IMZ), respectively.
 
 Further reserves are located at the Mirador copper project held by
 Ecuacorriente, a subsidiary of Canadian Corriente Resources (TSX: CTQ) and at the Quimsacocha gold project held by Canada's IAMGOLD (TSX: IMG, NYSE: IAG).
 
 ROYALTY AGREEMENT
 
 The government is working with the four companies to reach an agreement on royalty payments and environmental concerns so it can reform the current mining law, the official said.
 
 The president of Ecuador's mining chamber César Espinosa told BNamericas that the chamber is in talks to draw up mechanisms to create a larger state share in mining projects by applying a royalty.
 
 "The government's plan is to negotiate with mining companies operating in the country that hold advanced mining projects about to begin the construction stage," he said.
 
 The parties hope to clarify the issues while the new mining law is under discussion in the constituent assembly, Espinosa said.
 
 Ecuador's government presented the draft mining reform law to the
 constituent assembly.
 
 
 By Harvey Beltrán
 Business News Americas