EcoLocalizer

The uncertainty and uproar in Ecuador’s mining industry continues. Legislators have approved a new mining bill that would allow for the resumption of mining in this Andean nation, and President Rafael Correa has stated that he would not oppose it, even in the face of widespread protests from Indian and environment groups.

“It is necessary to propel responsible mining,” Correa said during his state of the state to the assembly. “I will not back down on the mining law.”

The new law has also lifted a nine-month ban on mining exploration activities, sending the stocks of foreign companies with property in Ecuador soaring in the expectation of resumed mining activities.

“It’s a huge move forward. This allows the company to get back to its exploration and development,” said Dan Carriere, vice-president of Vancouver, British Columbia-based Corriente Resources

Following the implementation of the ban, over 75% of existing mining concessions were moved to governmental control, and another 1220 concession requests were cancelled.

However, environmental and indigenous groups have begun protesting the new law, contending that it threatens the environment, and favours foreign companies. Protests are scheduled for January 20, and Indian groups plan on challenging the constitutionality of the bill.

The new law increases government oversight over the mining sector, and has set a minimum of 5% royalties (royalties increase based on sales).

Source: woody1778a via Flickr’s Media Commons

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