Ecuador
Legislation
- Mining Act 2009 (as amended)
- Mining Regulations 2009 (as amended)
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Serve | Subscribe |
| Application Critiera | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
For many years, Ecuador has struggled with a strong anti-mining rhetoric which has caused considerable challenges for mining companies seeking a social licence to operate. Whilst the country has acknowledged the economic need for mining and expressed a desire to attract increased FDI, the country has long grappled with balancing this need and objective with its environmental protection principles and the need to ensure that its citizens benefit from their natural resources. Unfortunately, the Mining Act does not offer a suitable pathway for progress, it merely represents the struggle in legislative form – acknowledging the basic principles of security of investment and then persistently undermining them. Clarity is also much needed on consultation requirements, with some degree of certainty only likely when legislation is introduced to properly address company and government obligations. Whilst existing mining projects in the country are now progressing towards development and production, this has not been without permitting challenges and issues. A strategic approach with planning beyond the legislatively prescribed timelines is recommended to all who choose to pursue opportunities in the country.
Contents
Legislation
- Mining Act 2009 (as amended)
- Mining Regulations 2009 (as amended)
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
Whilst Ecuador’s mining sector has been slow to develop, in the last five years, several large-scale mining projects for gold and copper have progressed to feasibility and others to the negotiation and signing of mining agreements with the State. So, whilst progress has been slow, advancement is happening. With considerable untapped mineral wealth, including deposits of gold, silver, copper and lithium, mining is recognised as an important economic sector and a key target for future growth. Whilst there is reason to be hopeful, the industry continues to be impacted by the country’s influential anti-mining movement, slow bureaucratic processes, permitting delays, legal challenges and security and stability concerns. Electricity shortages and security risks also threaten project progression, whilst challenges around free, prior and informed consent (FPIC) continue to impact investment certainty and stability. It is hoped that legislation will be introduced in the near future to address the latter. Investors will need to focus on their ability to negotiate a comprehensive exploitation contract and reduce the ability of the State to interfere with their project if they are to achieve successful outcomes in the country and protect their investments over the long-term.
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