The negotiations have been long and difficult, in part because the government was asking companies to pay an 8 percent
royalty 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, who
has 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 added
in 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's
Corriente 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 the
final 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, the
government'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 the
government 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 regulations
for the sector.
Ecuador is also negotiating contracts with International Minerals over its Rio Blanco gold-silver project, with Ecuacorriente over
its 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 popularity
among the majority poor.'
