>Ecuador's mining chamber said in a press release that the Andean country will scare away investment that it estimates could be worth some $2.0 billion. According to the chamber, the country also will lose $1.7 billion in projected taxes.<
These are all empty threats. With metal prices so high, which ever country has the ore bodies gets to rewrite the rules, if they so chose. It has been clear since Correa came into power that his government was looking to rewrite the rules. The name of the game is to avoid those countries with a propensity to rewrite the rules, such as Ecuador, Bolivia, Venezuela, Mongolia, South Africa, to name a few. North America and Australia are safe. Some countries which have signed free trade agreements with the U.S., such as Mexico, Peru, and Chile may also provide some protection for investors. Threatening the loss of jobs or taxes is futile. There are plenty of others such as the Chinese or cash rich majors waiting to step in to Ecuador who holds all the cards since they have the good deposits which are now in short supply. |
