JUNIOR MINING

Ecuador officials hope mining, exploration will resume by late August

Despite last month’s revocation of mining and exploration concessions, Ecuador’s government appears anxious to resume foreign mining and exploration in the country.

RENO, NV -

In a recent interview with Bloomberg News, Ecuador's Mining Undersecretary Jose Serrano said he wants exploration of large gold and copper deposits to resume by late August.

Last month the country's Constitutional Assembly enacted a Mining Mandate which invalidated hundreds of mining and exploration concessions in Ecuador.

The Energy and Mines Ministry is drafting new legislation to address what President Rafael Correa claimed was widespread corruption and regulatory enforcement issues. Correa has assured foreign mining and exploration companies that he supports responsible mining, if communities have a stronger voice in local mining and exploration projects.

Serrano told Bloomberg that the government once to keep the suspension of the projects as brief as possible. "Once the law is in force, they will be able to start working immediately-we expect in August by the latest," he said.

The Undersecretary said he wants the new law , which will set a deadline for environmental reviews for new mines to 60 days, in effect by May 29. Discussions with foreign junior mining and exploration companies now operating in Ecuador about the new rules will resume on May 12 and focus on letting work continue.

Serrano said that many companies are still working on projects because they haven't been advised formally of the ban.

On May 6, angry mining company employees, who had been laid off from their jobs, demonstrated in front of the Presidential Palace. Serrano said the government is offering temporary work in road construction and technical training for some of them.

Companies impacted by the suspension of mining and exploration concessions include Aurelian Resources, Cornerstone Capital Resources, Corriente Resources, Dynasty Metals & Mining, Ecometals, Iamgold, International Minerals and Salazar Resources.