ACTUALIZA1 interview-Ecuador-looking investment, mine exploration
26/6/2008 - 19:36 (GMT)
By Enrique Andres Pretel
QUITO (Reuters) - Ecuador will boost mining activity with a new law to lift the existing restrictions on exploration, although increased state control in the sector with demands for investment and environmental protection, said the undersecretary of Mines, Jose Serrano.
The leftist president Rafael Correa in April suspended activity on the nascent mining industry to adopt new legislation in September with a mandate that aroused fears among businesses because limited to three exploration concessions, threatening their chances of profitability.
However, despite the fact that the agent seeks to increase public control over natural resources of the Andean country in key areas such as oil and mining, also needs to attract private investment to develop these activities that provide vital resources to the State.
"What is being established is a mechanism in which not limit the number of concessions for the exploration phase, but also a procedure to reduce the concession areas as and when it is done (that work)," said Serrano in an interview with Reuters.
The Executive with this measure seeks to end speculation that the delays had been assured place in the exploration phase under previous governments, when companies seeking large areas of prospecting and then resell them without making investments or production projects.
"The idea is that when finished the stage of exploration not have more than 50 percent of the area originally requested, and when you go to start the operational phase do not have more than 5,000 hectares," the official specified.
These terms are sufficient, according to industry experts, who noted that a mine tends to occupy 500 hectares and that reducing the areas of exploration is a common practice in other mining countries.
In addition, the Government will harden the conditions for the award and maintenance of the areas granted, forcing companies to invest minimum per hectare per year in its concessions, whose duration will be between 25 and 30 years renewable as compliance with the plan presented.
Serrano said that the point remains to be defined in the law is to royalties, which could be based on operating profit but that companies expect to be applied on net sales.
Industry sources noted that the general terms of the law seem reasonable and that could boost alicaída investment by mining firms in the Andean country, including Canadian companies as Iamgold, Aurelian Resources and Corrientes.
(Por Enrique Andrés Pretel, editado por Patricia Vélez) (By Enrique Andres Pretel, edited by
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Draft Mining Law will be delivered on Friday PDF Print E-Mail
Wednesday, June 25, 2008
The proposed new Mining Law will be handed over to President Rafael Correa, June 27. The document was prepared by the Ministry of Mines and Petroleum.
The mining sector of the country worked with the Secretariat of State in order to deliver the right information on the subject and to contribute in the implementation and development of new legal framework.
Javier Cruz, director of the Chamber of Mines of Ecuador, explained that they do not know the outcome document that will go to the Presidency of the Republic, but expect that contains the arguments given. The aim is that the legal framework will benefit the state, communities, the country and international companies who are betting the country.
Recently the Minister of Mines and Petroleum, Galo Chiriboga, admitted the delay in submitting the draft law, which should be ready by the end of May and explained that seek to "boost mining activity, but with environmental and economic criteria, so that wealth favors areas where mining companies operate. "
Cruz, emphasized the millionaire investments being made by countries in the region in mining and cree that should be an example for Ecuador. "Chile will invest $ 4,800 million in expanding the Andean mine," he said.
If in the country are developing the projects planned by companies Ecuacoriente and Aurellian only for the initial phase will require 2,100 million, this will generate 2,500 direct jobs. According to the expert, the process of "maturing" of the mining industry in Ecuador is 10 years, during which time will create 100,000 jobs.
Ecuador in the mining industry "responsible and formal" is just beginning, and it is necessary to do so either because mining impacts cause. The fear stems from the damage caused in mines stony materials, which have the predators have polluted the environment and without any remediation.
Cruz says that the activity should be monitored and controlled nationally by the state mining company, "so that the country is fulfilled what determines the norm.
The activity is also controlled by the Ministry of Environment that requires significant safeguards to approve the environmental impact study "and if the parameters are not met guarantees are" effect "and withdrew the concession.
According to Cruz, "should give them guarantees, while the state should require mining" because for them this is "a moral issue." "But in the country "there is no proper monitoring and control system running guarantees."
The Chamber of Mines performs agreements with international NGOs, to develop plans veeduría to enable communities to receive what they offer companies and ask what they really need. (Www.multimedios106.com) |
