Government Plans Mining Policy Changes In Ecuador

ECUADOR

Govt plans mining policy changes - Ecuador

BN AMericas, 23 March
By Harvey Beltrán

Ecuador's mining authorities plan to change sector policies with a view to "drawing up a new game plan," the country's deputy mining minister Jorge Jurado told BNamericas. The idea is to define a new work plan and determine "how we are going to carry out mining activity, with whom, under what circumstances and with what procedures," the official said.

Regarding the effect of these changes on companies already operating in the country, Jurado said, "we are going to change the rules of the game, but it will be within a framework of national dialogue. That will be one of the fundamental foundations for proposing new rules."

Meanwhile, the president of the Guayaquil mining chamber, César Mancheno, said the chamber would respect the new rules. But "there are mining concessions that have already been awarded which will have to be respected," he added.

MUTUAL BENEFITS

For Jurado, if the state announces that it is seeking higher revenues from mining, "then yes, we are changing the rules of the game more toward a model in which the companies can have their benefits and the state must have its fair benefits." The deputy minister also stressed that neither communities nor the environment will be left behind when large-scale mining projects are developed, and that the new strategies will be based on supporting small-scale mining.

As such, the government aims to generate a debate based on open dialogue that will give all interested parties an equal chance to be heard. "In the coming weeks, we expect to announce the launch of this national dialogue," said Jurado, adding that initially the consultations will be carried out in areas where the social conflict surrounding mining has heated up since late 2006.

In November, Vancouver-based Corriente Resources chose to suspend works at its Mirador old-copper development project - at the government's request - to try to ease worsening conflict with protestors. Meanwhile, a deal has been signed between community leaders and Canadian company Ascendant Copper that has reduced protests, though opposition to mining remains.

NEW LAW

To carry out these regulatory changes, a mining law reform bill will have to be presented, which will take 3-4 months to prepare, according to Mancheno. The reforms will be able to achieve changes leading to piece in the mining sector, he added. "We will favor the changes that need to be made above all in terms of information for communities, principally in conflictive areas," said Jurado.