To the statement that Ecuador will not compensate mining companies for seized concessions - I suspect that this is just some mindless rhetoric. Just recall that and even more the dangerous wing nut Chavez has always fairly compensated companies that he decided to nationalize or taken assets away from. Even so I believe that 98% of ARU is in FDN so losing concessions is not a big deal.

We also have a bilateral trade agreement between Canada and Ecuador and that should provided some recourse.

The biggest factor here is that so many details are unknown or can be confirmed by a reliable source.

No doubt that the reputation of Ecuador has been damaged severely by this stupidity and very soon the Politicians will see that. Will ARU SP be back above $8 - I think so but not over the short term. Lets not forget that politicians are morons everywhere - look what happened in Alberta with the oil patch.

Another factor to consider - with all the buzz about Chinese investments in the country a few months ago. Do you think they are stupid enough to invest in a country that treats investors like what appears to have happened to the mining sector? I don't think so. So even a wing nut like Acosta can strut around and make lots of noise but unless he can pull billions out of his butt to feed the people very soon he'll be dealt with (possibly via a 9mm).

GLTA