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Mining Cos In Ecuador May Have To Pay Royalties -Mines Min |
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| Thursday November 8th, 2007 / 0h09 |
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QUITO -(Dow Jones)- Mining companies operating in Ecuador may have to pay royalties to the government in the future and even pay more whenever metals prices go above pre-established levels, a requirement similar to that faced by oil companies now, Mines and Oil Minister Galo Chiriboga said Wednesday.
"There have to be some rules on the additional revenues brought in by the metals. The mining and oil sectors should be treated similarly," Chiriboga said. He was speaking at a roundtable discussion on mining policies in Puembo, Ecuador, also attended by President Rafael Correa.
The contracts of mining companies already in Ecuador and those planning to come will be scrutinized on a case-by-case basis, Chiriboga said.
According to the minister, the Constituent Assembly will be charged with writing new mining-sector regulations, and it will establish the obligation to pay royalties to the government. Mining companies currently pay for their concessions, but pay no royalties on what they mine.
How these royalties would be paid, including whether additional revenue should be paid once metals prices go above prices pre-established in contracts, would be part of a specific law.
The government, mining companies and communities affected by mining will be involved in defining the new policies, Chiriboga said.
Several foreign mining companies, including the Canada-based companies Corriente Resources Inc. (ETQ) and Iamgold Corp. (IAG) and U.S.-based Ascendant Copper Corp. (ACX.T), have operated in Ecuador for several years. They are expected to continue to operate, but have said they are waiting to hear from the government on any new regulations.
-By Mercedes Alvaro, Dow Jones Newswires; 59-39-9728-653; mercedes.alvaro@dowjones.com
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| Thursday November 8th, 2007 / 0h09 |
Source : Dowjones Business News |
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