Hi ebear, now I know we do have other things in common - we are both CGP investors as well.  This is as if we don't have enough punishment from ARU yet.  I am down 30% on CGP already, that's  the fun of investing in juniors.

Anyway what I am interested in is how do you negotiate with the government over this WFT? 

If I were a manufacturing concern, I can say I don't like your taxes and I will move next door to set up shop (say (Peru and Chile) who will roll out the red carpet for me.   But this is mining, you have to go where the resources are located.  Sure you can bluff and say you will leave, but you can't take FTN with you.  They really have you over a barrel.  So now what?

Youi can shut down and stop sinking more money in developing the reserves at FTN.  The government will lose tax revenue, 70% of nothing is still nothing.  So you both start a pissing contest while both fully aware it is a "lose, lose" situation.  It becomes a "Mexican standoff" and see who blinks first?  Or do you sit down in private and do the sensible thing and try to make up a list of "gives and takes"?  

Even then I can't see how this 70% WFT could be negotiated away.  It is too high profile and it becomes a matter of national pride.  Correa is now telling his people that he has taken on the "gringo" multi-nationals and won on their behalf - Ecuadorian resources for Ecuadorians.  He would so proclaim!  This is a political treasure too big to fumble - practicality notwithstanding. 

I have done quite a bit of negotiations in my days, but I just can't seem to find a way - from Ecuador's perspective - to back off this tax and still saves face.  

Love to hear the opinion of others on this.