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 India to Explore Possibility of Cooperation in Mining Sector with Ecuador
VICE MINISTER OF ECUADOR MEETS MINISTER OF MINES
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13:54 IST |
The Vice Minister of Foreign Affairs of Ecuador Mr. H. E. Jose Valencia met Minister of State for Mines, Shri B. K. Handique here today. The Ministers of both the countries explored possibility of cooperation in mining sector between India and Ecuador.
This meeting assumes importance in the view of the fact that Ecuador is endowed with varieties of minerals which includes gold bearing quartz veins and placers, silver, copper, lead, manganese and various industrial minerals like: barite, clays, feldspar, gypsum, limestone, marble, etc. Oil and natural gas are the main mineral resources. Small quantities of gold, silver, copper and zinc are produced. The country is known to have deposits of uranium, iron ore, lead, and coal. The gold exploration and production is mainly being continued in the Nambija, the Ponce, Enriquez and the Zaruma-Portovelo gold districts of Ecuador. The area for the copper are Mirador property lies in the region called Corriente copper belt which was first explored by BHP Biliton PLC. Foreign Direct Investment is allowed in Ecuador for exploration in Gold Silver, Molybdenum, Zinc, Lead. Major operating companies in Ecuador are organised in cement, gold petroleum crude, petroleum refinery products, sand & gravel and crude steel.
Ecuador is extremely rich in mineral resources with 4.6 billion barrels of oil reserves and other mineral reserves, mainly gold, copper, nickel, ferro metals etc. worth US $ 220 billion. About 40 international companies with investment worth more than US $ 1.2 billion representing about 55% of the total foreign investment in Ecuador, operate in the country.
According to the Federation of Indian Mineral Industries (FIMI), gold is found in the province of E1 Oro, where the great Zaruma and other companies have opened a number of mines. It is also found in the provinces of Loja, Esmeraldas, and in the river-beds along the eastern slopes of the Andes. Quicksilver has been mined at Azzogues, in the province of Canar, and is also to be found in Azuay. Iron ores and lead are credited to several provinces, and platinum has been found in Esmeraldas, where emerald mines have been worked ever since the Spanish conquest. Coal of good quality has been found in Azuay and at other points, and petroleum is known to exist in several localities. Salt springs near Riobamba and at Salinas, in lmbabura, have long been used by the natives in the manufacture of salt.
A new mining mandate has been adopted by the Ecuador on April 18, 2008. Some of the major features of the new Mining Mandate are that new Mining Mandate limits mining companies to holding a maximum of three concessions. The new Mining Mandate invokes an immediate 180 days suspension of activities on virtually all mining concessions in Ecuador while a new Mining Law is drafted and adopted.
Shri Handique informed the Ecuadorian delegation about the liberalization in the Indian economy leading to rapid changes in mining sector and the New Mineral Policy announced by the Government in March 2008. He also informed about the change in the Indian FDI policy in the mining sector allowing foreign equity holding up to 100% on the automatic route for all non-fuel and non-atomic minerals including diamonds and precious stones. Thus, he said that India looks forward to opportunities for bi-lateral cooperation in the mining sector with Ecuador.
MC/MK
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