They approve rule that nullifies thousands of mining concessions in Ecuador
Quito (EFE).

The Constituent Assembly of Ecuador today approved a mandate with the force of law that nullifies thousands of mining concessions and reverts to the state, amid complaints from businessmen that will lead to the "death" of mining in the country.

The mandate mining ", adopted with the votes of 95 of the 130 members of the Assembly, declaring" extinction without financial compensation of any kind "of all the concessions, at a stage of exploration, have not invested and have not submitted studies on the environmental impacts.

Also declaring a "moratorium" on new concessions until it enters into force the new constitution drawn up by the Assembly.

The director of the corporate Chamber of Mines, Javier Cruz, cautioned that because of these rules may lose investments 2,000 million in the next two years, as well as the creation of 70,000 "quality jobs in the next ten years" .

Cruz also expressed fear that the planned investments in the country "will be suspended immediately."

By contrast, the Ecuadorian president, Rafael Correa, whose party, Country Alliance, has 80 seats in the Assembly, said today that this standard is "seeks to eliminate all mining concessions handed irregularly shaped and ruled that the law annulled activity mining in the country.

"The mandate does not preclude future mining concessions," explained Correa, after stress that many deposits were handed over in the past on an irregular basis, it "will have to be reversed" to the State.

Correa remarked that "the present dilemma is not to say yes to mining, or not, but find a responsible mining, economically, socially and environmentally" sustainable.

The mandate also stipulates the creation of the National Mining Company, a state entity that will participate in all phases of activity, "under conditions of environmental preservation and respect for the rights of the communities where they settle projects.

The Assemblyman Betty Tola, Country Alliance, stressed the importance of the decree, as it seeks to "restore the sovereignty of the state over mineral resources."

Tola noted that, according to studies in the sector, 12 per cent of the national territory has been put into mining concessions in the past, with a total of 3,298 agreements on an area of 2.3 million hectares.

The Assemblyman pointed out that only twelve mining companies hold concessions on one million hectares and that there are currently 1,200 other applications to exploit mineral resources.

Pedro Morales, the group official also said that the vast majority of mining concessions surrendered without adequate studies or information.

The Assemblyman Cesar Rohon, the opposition Social Christian Party, called for whom prison mining concessions granted in special reserves and protected areas.

Rohón defended mining activity and said that this sector can be an alternative to the lack of jobs and help improve the production and attracting foreign investment.