Ecuador Will Allow Mining Exploitation In 2012
4 minutes ago - Dow Jones News
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As of 9:30 AM ET 9/14/09
QUITO (Dow Jones)--Ecuador's Mines and Oil Minister Germanico Pinto said Monday mining exploitation in Ecuador will begin in 2012.
"In Ecuador mining activity is in a stage of advanced exploration and it will continue," Pinto said at a press conference.
Pinto said that next year the government will start negotiations with private companies to sign contracts for exploitation, but he didn't outline the conditions for those contracts.
In April of last year Ecuador's Constituent Assembly, then acting as the legislature, froze mining-sector activity by revoking around 80% of mining concessions and by suspending the other 20% for 180 days.
In March 2009, the Ecuadorian government authorized Corriente Resources Inc. (ETQ) and Kinross Gold Corp. (KGC) to resume their operations in Ecuador, after a nearly 11-month hold on mining activity in Ecuador.
The government has said the new mining law, approved early this year, will open the door to a potentially lucrative and underdeveloped industry in the country and that the country's mineral potential could amount around $110 billion.
Local units of Corriente Resources (ETQ), Kinross Gold Corp. (KGC), International Mineral Corp. (IMZ.T), Iamgold Corp. (IAG), Spirit Exploration Inc. (SPXP), Mariana Resources Ltd. (MARL.LN), among others, currently have mining concessions in Ecuador.
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