The new Mining Law will be presented the next June 27
6/9/2008

Quito, EFE

A total of 1 138 mining concessions reverted to Ecuador since last April 18 the Constituent Assembly adopted the Mandate Mining, which provided for the cancellation of all the irregularities that have not paid or patents, announced today the Minister Galo Chiriboga.

The areas returned to the State of these concessions include 2 084 024 hectares of land in the provinces of Pichincha (350 concessions coated), Azuay (210), Loja (160), Chimborazo (145), Zamora (119), Guayas (110) and El Oro (44), said Chiriboga, Minister of Mines and Petroleum.

Among the 313 largest concessions totalling 992 353 hectares, given in concession to mining companies All Metals Mining Atlas Moly SA, Carlos Arturo Arias Eguiguren, Dai Zhou Xiaohui, Ecuadorgold, Minera Mariana, Sierramin, Chanel Mining Resources, Elipe SA and Santa Barbara Copper and Gold.

Until July last year had been awarded 4 605 mining concessions in Ecuador, affecting 4.6 million hectares of land, while other 1 562 in the pipeline had not been satisfied.

Less than seven percent of the concessions were in production stage and among all the Ecuadorian State had generated $ 25 million over the past eight years, since the tax was receiving no royalties from the production, but only by paying patents.

Chiriboga announced today that on June 27 near his department will submit the proposed new Mining Act, which currently discusses with social sectors, business and industry.

The minister admitted the delay in submitting the draft law, which in principle should be ready by the end of last May.
"We want to encourage mining activity, but with environmental and economic criteria, which favors the rich areas where mining companies operate," said Chiriboga.

According to him, his Ministry is open to dialogue, it deemed "necessary to avoid the extremist positions", which the government has accused organizations that are opposed to convert to Ecuador in a mining country, as they believe it will cause social conflicts and will be lost environmental and water resources.

Residents of areas of possible mining, social groups, indigenous people and environmentalists are strongly opposed to the mining policy advocated by the Government, which ensures that promote quarrying activity involving benefits for the state, but will try to minimize environmental damage.

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