Ecuador Sees $3 Billion Flowing Into Mining Sector With Three Years
Neils Christensen
Friday March 10, 2017 13:51
Kitco News
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(Kitco News) - After only two years of promotions, Ecuador has made strong progress in establishing itself as a mining destina
Lundin Gold’s Fruta del Norte project. In December, Lundin and the government signed exploitation and investment contracts as one of the last steps to construction. According to company projections, construction of the mine is expected to begin mid-2017. The project’s mineral reserves total 4.82 million ounces of gold and 6.34 million ounces of silver, according to the company’s feasibility study.
“Lundin’s deal is proof that things are now working in Ecuador,” he said. “Not only do we have great projects being developed but we have great projects in the pipeline.”
Corriente's copper project Mirador, China-based JUnefield Mineral Resources' Rio Blanco project, INV Metals' Loma Larga project and SolGold's Cascabel project are some of the properties currently being developed.
“The industry knows that Ecuador is untapped and that is attracting a lot of investor interest,” said Unda.
According to government data, foreign investment totalled $849 million between 2013 and 2016, with almost half the capital flowing in 2016. Between 2009 and 2012, the country attracted $179 million in investment interest. The government projects that capital will rise to $3.9 billion within the next three years.
Unda said that along with renewed confidence, a better tax structure is helping to make the country more attractive. The tax on large scale copper projects dropped to 23%, down from 30% in 2014. At the same time, the tax on gold projects has dropped to 21%, down from 27% from three years ago.
“We aren’t the cheapest nation out there but we are competitive,” he said.
While the government has made strides in its mining framework, Unda said that there is still more work to be done. He explained that the next step is to work with artisanal miners to give them access to technology that will make their operations safer for the workers and the environment.
