Government withdraws mining concessions to avoid community protests - Ecuador

By Harvey Beltrán, Business News Americas

Ecuador's ministry of mines and oil (MMP) has withdrawn 1,664 mining concessions and returned them to state control due to noncompliance with rules established by the mining mandate issued in April by the constituent assembly, the ministry said in a statement.

"The government has not shown the will to uphold the constituent assembly's decision and that is why communities intend to use force to make themselves heard," a Condem representative told BNamericas before the revocations were announced.

The ministry also said further withdrawals could be announced after the deputy ministers of mines and environmental protection - which are under the MMP - finish analyzing article 3 of the mandate that addresses water concessions.

Among the properties returned to state control 85 were held by past officials, or their relatives, who worked at the former ministries of natural resources and of energy and mines, the report said.

The rest of the concessions were pulled when holders neglected to renew concessions by legal deadlines, which have required yearly payments since March 31, 2004.

In June, the MMP also withdrew 1,138 mining concessions for similar reasons.

Ecuador's constituent assembly passed a mandate in April suspending all mining activities for six months to allow time for preparation of the mining reform bill.

Miners in Ecuador include Canadian companies Aurelian Resources (TSX: ARU), Corriente Resources (TSX: CTQ) and IAMGOLD (TSX: IMG, NYSE: IAG), along with US company International Minerals (IMC) (TSX: IMZ).