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Message: Correa says that with the end chaos in the mining sector in Ecuador

Correa says that with the end chaos in the mining sector in Ecuador

posted on May 06, 2008 04:14PM
Correa says that with the end chaos in the mining sector in Ecuador
Quito (AFP)
Paul Cozza / AFP

The president Rafael Correa addressed the demonstrators demanded that the mandate for mining at the foot of the Palacio de Carondelet.

The president of Ecuador, Rafael Correa said on Tuesday that will end the chaos in the mining sector after the 97% of the licences were suspended and the rest returned to draft a new law.

"There was chaos in the mining sector (...) did not pay royalties to the state," said the agent before a few thousand miners who were concentrated in front of the Palacio de Carondelet, the seat of national government in Quito, worried about unemployment in the left after adjustment in that area.

The Constituent Assembly, controlled by the officialdom, adopted on April 18 reversed a mandate that 97% of the 4,605 mining licenses issued since 2000, without announcing any compensation.

The measure affected the Canadian ECSA, Aurelian Resources and I Am Gold among 30 other dealers with more than three licenses, and excluded the Swiss Holcim and Lafarge French, who control the cement market.

The Constituent also suspended for 180 days a portion of the permits, during which time he will develop a new legal framework and renegotiate mining contracts amid protests against the exploitation of deposits.

Correa defended his policy of developing a responsible mining and acknowledged that the mandate of the Constituent was a tough but necessary to regulate the industry, in which he said, had "corruption" because some people were over 90 concessions that used for speculation without work for exploration and exploitation.

"They will have to pay royalties (...) in recent years were more than 4,000 concessions, tens of thousands of hectares concession that even paid royalties but 1.60 cents per hectare at the beginning and after ten years 16 U.S. dollars per hectare, this was a real robbery to the State, "he said.

The ruling noted that defends the aboriginal communities involved in mining. "Go to Bolivia, where 60% of indigenous population, but basa were in mining. Go and tell Evo Morales to close the mines to see where we send," he said.

The concessions included more than 4.6 million hectares with deposits of gold, silver, copper and limestone, of which less than 7% are under production in Ecuador.
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