Please see the following
article by Reuters that was released Friday Jan 25th. For the past few months,
it has been reported that the Ministry of Mines and Petroleum in Ecuador has
been reviewing current mineral concessions throughout the country and that they
would be revoking those with significant outstanding issues.
The government has now decided to act and “based on legal
norms” has annulled a number of mining contracts where owners failed to pay
concession fees. Concession fees are annual fees that are required to be
paid to the Ministry of Mines and Petroleum by the concession holder to keep
the concessions in good standing. As stated by a Ministry official
(please see below), this action does not affect Corriente.
Dan Carriere
Senior Vice President
Corriente Resources Inc.
By Alonoso Soto
and Alexandria Valencia
QUITO, Jan 25 (Reuters) - Ecuador's government on Friday
revoked hundreds of mining concessions in a move that did not affect the
country's biggest players, but sent a message that the Andean nation wants to
boost control over its natural resources.
The takeover advances President Rafael Correa's campaign to
increase state control over mining but avoids a battle with important foreign
investors who generate revenue for the impoverished nation.
Mining and Petroleum Minister Galo Chiriboga told reporters
the state was annulling 587 mining contracts for failing to pay fees on
concessions to exploit reserves of copper, gold and other metals.
"Based on legal norms, (the government) decided to
revoke these contracts," he said.
But another mining official said the decision would not
affect the country's biggest miners, which include Canadian junior miners
Aurelian Resources (ARU.TO: Quote, Profile, Research), Corriente Resources
(CTQ.TO: Quote, Profile, Research) and Iamgold Corp (IMG.TO: Quote, Profile,
Research).
The measure did revoke concessions held by Canada's Ascendant Copper (ACX.TO:
Quote, Profile, Research), but the government had already ordered the company
to halt the project's operations on charges it had violated mining regulations.
The announcement will appease environmentalists and
residents of Southern Ecuador that have pressured Correa to increase control over
mining concessions following complaints the state was indiscriminately handing
out mining contracts. (Writing by Brian Ellsworth; Editing by David Gregorio)