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Ecuador minister downplays state mining role report
Mon May 28, 2007 1:58pm ET
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UPDATE 1-Ecuador halts Canada's Corriente project activity
Ecuador minister downplays state mining role report
Ecuador to review mine concessions, seek royalties
By Alonso Soto
QUITO, May 28 (Reuters) - Ecuador's mining minister downplayed on Monday a news report of the government wanting to greatly expand the state's role in the mining sector, which had sparked selling in some companies' shares.
The share prices of Canadian mining companies with interests in Ecuador fell on Friday after an online news report quoted Interior Minister Gustavo Larrea as saying Ecuador wanted legislation to allow it to take up to 80 percent of the sector's earnings.
But on Monday, Energy and Mining Minister Alberto Acosta, who is more influential on mining policy than Larrea, said the government had not decided on such a policy for the sector.
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"We are still discussing it, there is nothing concrete yet," Acosta told Reuters.
While the government wants to revise its mining concessions and introduce royalties in the sector, the energy minister said there was no draft plan to boost state participation in mining.
Ecuador lacks significant production of precious metals, but Canadian companies such as Corriente Resources (CTQ.TO: Quote, Profile , Research) (ETQ.A: Quote, Profile , Research) and Aurelian Resources Inc. (ARU.TO: Quote, Profile , Research) have started exploring for gold and copper. Their shares fell after the report.
One investment strategy company, Hallgarten & Company, said the online news report misinterpreted Larrea's comments and that the market had overreacted. Continued... |
