After negative rulings, the mining sector fears lawsuits and lack of interest in investment

Fail Constitutional Court About two mining concessions in the Los Cedros Cloud Forest in Imbabura It is considered a “huge” impact for a sector that is estimated to export $1.6 billion in mining materials in 2021.

Judgment issued in early December prohibits Mining And all kinds of extractive activities in the Cantonal Reserve Kotakachi. In the decision, it was also decided to refuse Water and environment permits for mining companies.

“These kinds of provisions are very dangerous for legal investment and investment attraction,” he told EL COMERCIO. Maria Eulalia SilvaPresident of the National Chamber of Mining.

The verdict came days after the government presented it Ecuador open plan for business, an event in which a portfolio of public-private partnerships was presented, consisting of 50 projects, expected to attract US$30 billion in the next four years.

the Mining It had a large segment in this portfolio, which also includes the hydrocarbons, energy, infrastructure, health, environment, telecommunications, real estate, sports and culture sectors.

This initiative sought to create at least 600,000 direct and indirect jobs, according to criteria set by the IDB (Bid).

After the main trade event, Guillermo Lasowith energy ministers, Juan Carlos Bermoand production Julio Jose Prado, signed two investment pledges amounting to 466 million US dollars to develop two mining projects in governorates gold e Imbabura.

The companies with which agreements have been signed are the Australian mining company SolGold and the Canadian Lumina Gold.

Pablo ZambranoThe president of the Confederation of Ecuadorean Industries notes that the Constitutional Court ruling impedes legal activism and calls for “institutional supremacy, rationality and legal security”.

Albero Acosta Burneo agrees that legal guarantee, which may scare investors. In addition, it is considered that a negative signal is given to the world.

“It opens the door for another negative squad, international demands. International arbitration may come, millionaire lawsuits. He emphasized that the impact on investment is enormous.”

Juan Carlos Bermo, Minister of Energy and Non-Renewable Natural Resources, explained that only 10% of Ecuador’s mining potential has been explored.

The official intends to open mining record Between December 2021 and January 2022, nearly four years after the handover of mining concessions in Ecuador was suspended.

Actor and activist Leonardo DiCaprio He called the abolition of the mining concession “a historic victory for nature in Ecuador.”

DiCaprio believes the decision protects “nearly 25,000 acres (about 10,000 hectares) of protected forest and sets” an important precedent.

But Silva thinks the referee opens the doors to illegal mining activity In the area that develops without control and affects nature.

The mining area concession allows investors to develop exploration activities in specific areas. These practices (exploration) may or may not end Exploitation of mineralsAccording to the results obtained in the different stages.

Franchise History the rice It dates back to the beginning of 2019, before the state of emergency confinement was declared due to the COVID-19 pandemic. Cornerstone EcuadorLtd., a subsidiary in the country of the Canadian company, has conducted mining exploration studies in the Río Magdalena 1 and Río Magdalena 2 mining concessions, located in Cotacachi.

The National Mining Corporation of Ecuador (ENAMI EP) is the concessionaire, and the concession was granted by the Ministry of Mining in 2017.

Enami used an agreement signed on 14 June 2016 with Canadian Cornerstone to establish with its subsidiary in the country, Cornerstone Ecuador SA (“CESA”), a jointly exploration and exploration structure for mineral deposits.

Under the ENAMI-CESA cooperation agreement, the Canadian subsidiary in Ecuador is the operator of the project.