http://www.elcomercio.com/solo_texto...

The big mining goes
9/16/2008
By Walter Spurrier Baquerizo

The law stipulates that the transitional Assembly, in its incarnation of Congress, adopted five laws in 120 days needed to launch political reforms of the Constitution provides that. Four of these laws are strictly political, and the fifth is food security. Other laws are for later.

As President of the Republic urges you to start mining. The Ministry of Mines and Petroleum have ready a bill consistent with the provisions of the Constitution which would replace current provisions of the Mining constitutional mandate that makes unfeasible to mining activity.

The priority given to the mining law shows that the National Government for the development of large mining is vital.

Last week Xavier Cordova, deputy minister in charge of Mines, during the Mining Forum in Denver, U.S. stated that Ecuador is willing to remove the tax from 70% to income miners extraordinary, for poor performance that has occurred in other countries. The conference attracted positive comments among those attending the forum.

The new law will go to Congresillo whether it wins or Congress of the tablecloths if not wins.

Would open the door to a renegotiation of contracts miners agree to the new Constitution and law, giving legal certainty to investors who have to risk large sums of money to find and exploit resources.

Time is pressing. The mining activity has been paralyzed under the current government.

The prices of copper and gold, equal to what occurs with oil, have fallen sharply from peak reached a few weeks ago, with what already we miss the opportunity to sign contracts and attract investment when the potential value of our mineral wealth was at its peak. It remains excellent, but lower than that of until recently.

The two highest-profile prospectuses, ready for massive investment receptiveness are the first of Current, Mirador, copper, which the company operates directly and Northern Tree, Aurelian of gold, which led to the absorption of such mining by larger , Kinross. Current has a second copper project, San Carlos, for which he seeks a strategic partner. Among the companies that have shown preliminary interest is the largest processor of copper China, as well as the Chilean Codelco.

Along with these there are at least half a dozen more important.

The government's economic strategy, focusing on public spending, requires a permanent increase in tax revenue, and thus enter the exploration and exploitation field Ishoingo-Tamcocha-Tiputini, Pungurayacu of heavy crude oil, as well as the most promising prospectuses of a large mining in the country.