Maybe very close to resolution now.
posted on
Nov 24, 2011 10:18PM
Gold Production in Southern Ecuador
6 million oz Gold & 27 million oz Silver
Sounds like some exploitation contracts are very close to being signed. Should be the go ahead on Dynasty ramping up production once the taxation and royalty rates are set and a Dynasty contract signing with Ecuador. I would think that an agreement for Dynasty should follow very closely after the deals mentioned in the article below are inked.
'Ecuador's Correa says mining contracts "within days"
Thu Nov 24, 2011 9:02pm GMT
* Two miners set to invest $3 bln in copper, gold projects
* Miners have agreed to gov't demands - top mining official
By Eduardo Garcia
QUITO Nov 24 (Reuters) - Ecuador's President Rafael Correa said on Thursday his government is "within days" of
The negotiations have been long and difficult, in part because the government was asking companies to pay an 8 percentroyalty share, whereas miners were offering 6 percent.
"We're negotiating the contracts very hard ... They will be signed in the next few days," said leftist leader Correa, whohas also renegotiated part of Ecuador's foreign debt and oil exploration contracts with foreign companies.
The government is demanding advance payments on royalties before the miners start extracting, the president addedin comments on local radio. The extra income from advance royalty payments would be used for social projects, including
schools and roads, Correa said. In power since 2007, he has made resource nationalism a centerpiece of his policies and
may run for another term in an election due in January 2013.
Kinross plans to develop Ecuador's largest gold project, Fruta del Norte, while Ecuacorriente - an affiliate of Canada'sCorriente Resources - will work on the Mirador copper mine.
Continued ...
ROYALTY NOT YET DETERMINED
Correa did not say how much royalty the miners would be paying, but mining sources familiar with the negotiations say thefinal percentage will likely be closer to the figure demanded by the government.
"Mining companies have agreed to the demands of the Ecuadorean state and we're completely satisfied," said Auquilla, thegovernment's top mining official, during the same radio show.
Correa has had a tumultuous relationship with foreign investors throughout his rule, revising oil contracts to better favor thegovernment and defaulting on the nation's debt.
He is striving to diversify the Ecuadorean economy from crude exports, and he has taken a softer approach to investors planning
to develop mines than the oil companies with large investments in the OPEC member country.
Ecuador has a nascent mining industry. Some larger projects were initially delayed as Correa's government tightened regulationsfor the sector.
Ecuador is also negotiating contracts with International Minerals over its Rio Blanco gold-silver project, with Ecuacorriente overits Panantza-San Carlos copper deposit and with IAMGold , which plans to develop the Quimsacocha gold-copper-silver mine.
High oil prices have allowed Correa to increase social spending this year, which has fueled economic growth and boosted his popularityamong the majority poor.'