Correa tells miners responsible mining will go ahead in country - Ecuador

Friday, April 25, 2008

Ecuadorian President Rafael Correa held a meeting with several mining companies where the corporations say he assured them that responsible mining will have a place in the country.

The meeting held in Quito on April 24 also included the presence of mining and oil minister Galo Chiriboga, mines deputy secretary Jose Serrano, and mining companies International Minerals, Aurelian Resources, Corriente Resources, IAMGOLD, Cornerstone Capital Resources, Dynasty Metals & Mining, Ecometals and Salazar Resources.

The purpose of the meeting was to discuss the future of mining in Ecuador and the impact of a recently announced mining mandate.

The mandate announced on April 18 includes an immediate 180-day suspension of activities on virtually all mining concessions in the country while a new mining law is approved.

"It was a meeting with all of the mining companies, but no specific issues as it pertains to particular companies were addressed," IAMGOLD IR director Lisa Doddridge told BNamericas, adding that miners left the meeting feeling that responsible mining would be allowed in the country.

International Minerals (TSX: IMZ), Aurelian Resources (TSX: ARU), Corriente Resources (TSX: CTQ, Amex: ETQ), Dynasty Metals & Mining (TSX: DMM) and IAMGOLD (TSX: IMG, NYSE: IAG) all said in statements that they continue to seek clarification on the effect of the mandate on their specific operations in the country.

"The fact that the meeting was the mining companies coming together to meet with President Correa is a demonstration that the Canadian mining companies are committed to working together for what is best for Ecuador and its people," Doddridge said.

DIALOGUE ON MINING BILL

Ecuador's mining ministry aims to open dialogue with all the sectors that are connected to the mining industry to include their input in the creation of the new mining law, a ministry statement said.

Representatives from the country's small, medium and large-scale mining chambers, as well as union representatives have been invited by the ministry to attend a meeting on Monday (Apr 28) to discuss the mining bill and make suggestions.

The new mining law will seek to regulate the industry, define the characteristics of mines, establish royalties and mining land rights, and determine the surface area and number of concessions any one person or company can hold in order to avoid concentration, minister Chiriboga said.

The bill also aims to define mine closure so that "ghost towns are not created," the statement said.

Anthony Esposito
Business News Americas