A nasty jolt - of the political kind - in South America Robin Bromby From: The Australian April 22, 2010 12:35PM
AS they say, there's good news and there's bad news. First, the bad news. Ecuador?s finance and energy ministers have resigned. According to Bloomberg this will clear the way for the government in Quito to change the mining regulations to ?grab a bigger share of mining and oil profits? and put in ministers more in accord with this plan. President Rafael Correa is trying to solve a serious fiscal problem by boosting revenue from oil and mine production.
This news will be received with gloom at South American Iron & Steel Corp which is still trying to regain control of its iron sands project in the country. They won?t be happy, either, at EnviroGold; while that company, which is 7.88 per cent owned by Macquarie Group, is at present focusing on its Dominican Republic gold venture, it has high hopes for its Azuay gold venture in Ecuador.
EVG Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
