El Comercio - Quito - Ecuador | 1 de junio del 2008

http://tinyurl.com/4oom7j

Mining: USD 100 million investment on hold
The money was intended for exploration, exploitation, wages, communities ...

The cessation of mining exploration leaves consequences. Firms slowed down their investments following the issuance of the mandate.

It was set to suspend exploration activities for six months. According to Holger Parra, a former president of the Chamber of Mines of Cuenca, for this year, investment exceeding U.S. $ 100 million was expected.

5.1 million grams of gold production was reported during 2006.

The firm BMI, which was exploring in Rio Blanco, Molleturo (Azuay), budgeted an outlay of $ 4 million. According to manager Federico Auquilla, that amount was earmarked for exploration, wages and the community.

IMC planned to start operation this year. Their area has a reserve of 640 000 ounces of gold and 4.2 million ounces of silver. They have 14 years of exploration and at this time, he said, had invested USD 70 million.

A similar situation occurs with Atlas Moly, located in Tres Chorrera (Azuay). The firm of Canadian origin with 80 partners from Pucara was exploring 49 hectares. According Antrew Taunton, president of Atlas Moly, investment between 2006 and last April was U.S. $ 6.5 million and 5 million was expected for the remainder of 2008.

The company Aurelian suspended prospecting and exploration on Project Condor, in Zamora Chinchipe. Their workers continue to work in the social area, environmental care, and camp maintenance.

According to Dominic Channer, manager of Aurelian, before the Mandate they had invested U.S. $ 2.5 million to 3 million per month. Now that does not exceed 1.5 million. Aurelian has 39 mining concessions (35 000 hectares) in Zamora. After six years of exploration they discovered gold and silver.

Another case is that of Ecuacorriente. According to Leonardo Elizalde, vice president of Corporate Affairs, by the end of the year they had planned to operate the Mirador project, and were preparing the San Carlos-Pananza (copper) project. Expected investment for 2007 and 2008 was U.S. $ 400 million.

For the representatives of the mining companies there were other losses. The money desitined to purchase machinery and equipment in Quito, Guayaquil and Cuenca. Also transportation, food and other items. To that we add the decline in workers. Thus, Aurelian reduced its staff from 470 to 95 and Atlas Moly from 60 to eight. For the entrepreneurs to regain confidence in new investments will be achieved in the medium term.

According to the head of the Chamber of Mines of Cuenca, Patricio Vargas, clear rules are needed in the new law, to guarantee exploration, legal security, environmental protection....

[translation: ebear]