Ecuador`s President wants $100m-$200m in mining royalties in advance - POLITICAL ECONOMY | Mineweb

Ecuador's President wants $100m-$200m in mining royalties in advance

Ecuador's President Correa, an economist by training, hopes to place his nation at the forefront globally by securing mining royalties for copper and gold projects in advance
Author: Dorothy Kosich
Posted: Monday , 08 Aug 2011


RENO, NV -
Ecuador President Rafael Correa said Saturday that his government is demanding that mining companies pay from $100 million to $200 million in mining royalties before "starting to extract the mineral."
During his weekly address to the country, the former economist said the first beneficiaries of the mining royalties will be the residents of the cities, parishes and communities near mining projects.
Correa urged residents of the province of Zamora Chinchipe, particularly those living in the towns of El Yantzaza and El Pangui to prepare for responsible mining growth. While Correa commented that there is much manipulation and bad faith surrounding the issue of mining, he asked people not to be fooled, but to realize that mining projects will bring numerous benefits including more employment.
The Correa Administration is now in contract negotiations with Kinross for the Fruta del Norte gold project, Corriente Resources for the Mirador copper project, and International Minerals for the Rio Blanco gold and silver project.
In his weekly address, the President noted the mining projects will generate a wide diversity of jobs including more than 3,000 jobs in El Pangui and about 5,000 in El Yantzaza. "
The Province of Zamora is very fortunate for these riches," Correa said. Mining companies hope to invest US$3.2 billion over three years, using the best available technology for exploration and project development. The President said he had no doubt that mining royalties will not only change the lives of people in El Pangui and El Yantzaza, but also throughout the province.
He stressed that he will seek mining operations that are environmentally friendly and socially responsible. Correa also wants guarantees that mines will not harm Ecuadorians.
In a news release from the President's Office, Wilson Pastor, minister of non-renewable natural resources for Ecuador, said the contract negotiations have been lengthy, but will put Ecuador at "the forefront in the distribution of mining royalties globally, in copper and gold."
Pastor said US$1.7 billion will be invested in the Mirador copper project in Zamora over three years. Mirador is expected to mine 235 million pounds of copper annually and generate 3,100 direct jobs and 20,000 indirect jobs.
Meanwhile, Ecuador's government is hoping to negotiate at least $100 million in advance royalties from the Fruta del Norte project, Pastor added.
President Correa recently stated he wants mining companies to sign exploitation contracts that will pay 8% in mining royalties.
While Pastor was hoping the contracts will be signed this month, Correa said in his weekly address that contract negotiations will conclude in September with the contracts signed in October.


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China's gold output exceeds 164T in first half, Gold sky-rockets to all-time high in India

Some mining news

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