Ecuador Copper & gold
Development and exploration company moving towards initial production.
Message: News from Ecudor
| New Congresillo to Receive the Mining Law this Week |
 Ecuador's president and legislature are on the verge of passing a new mining law to lift the six-month ban on mining. The issue is a top priority of the newly formed 76-member legislative body, the Congresillo, and President Correa. Ecuador remains the only Andean country with no large-scale mining operations, and needs to develop the industry since oil prices are plummeting. Read more |
| Dear EMN Friend, |
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Today the Ministry of Mines and Petroleum (MMP) is sending the mining bill to the National Assembly, or Congresillo, according to the latest update received by EMN. Although the date of its approval is yet to be determined, Congresillo president Fernando Cordero said that it would take betwen two and a half to three months to pass any law. As soon as the law is presented, the Congresillo will post it on its website. Go to the Assembly's website Go to the Assembly's website
The mining law approval will lift the mandate that halted industry operations since last April. Nonetheless, the good news is not convicing mining executives consulted by EMN who said the are tired of inconsistencies, double speak, and uncertainty. A Seeking Alpha Latin America report recently criticized Ecuador's slow moving mining legislation. Read Seeking Alpha report Some of the changes that Ecuador's government has made over the last few days include the 3 to 8 percent royalty switching to a minimun of 5 percent, new service contracts for exploitation firms, and confirmation of a windfall tax with details about the base price within the latest draft. Read New Congresillo to Receive the Mining Law this Week If we add to this panorama that the international financial crisis is limiting credit, and that there is less incentive to invest due to the metal prices downturn, the scenario is very challenging for the nascent industry in the South American country. However, in a story published earlier today, undersecretary of mines Jose Serrano revealed some bright spots on the horizon that executives should consider. Read Ecuador to present mining bill this week EMN hopes that President Correa and the MMP choose to see the whole picture when making the final touches to the law. Instead of wondering about how much stake the state will have in production, the government should allow the industry to develop first. The MMP should follow the Chilean, Peruvian, and Colombian experiences that have been consulted by the government. Read Ecuador Host International Mining Forum published Sep. 07 Sincerely, Silvia Santacruz Ecuador Mining News |
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