Ecuador Min: Mining Concessions Turned Over To The State

QUITO -(Dow Jones)- Ecuador's Oil and Mines Minister Galo Chiriboga said Monday that mining concessions on 2.08 million hectares of a total of 4.5 million hectares have been revoked and transferred to the state because of a Constituent Assembly decree passed last April.

At a press conference, Chiriboga said the process will continue and other concessions could be affected.

Companies affected by the decision are All Metals Mineria, Atlas Moly S.A., Santa Barbara Copper and EcuadorGold, units of Canadian companies.

Last April, Ecuador's Constituent Assembly froze mining activity in the Andean nation by revoking current mining concessions and by suspending the remainder.

The move was another step in the government's program to take more control over natural resources.

A majority of the members of the assembly are allied with left-leaning President Rafael Correa.

Chiriboga said the process to determine concessions that should be reverted continues.

According to the assembly's decree, each private company will be allowed to have only three concessions.

The ministry has not yet said how many concessions will be approved once a new mining law is approved by the assembly.

-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653; mercedes.alvaro@ dowjones.com

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  06-09-081325ET
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