Corriente delays startup of Ecuador mine.

Vancouver Already facing a suspension order from the Ecuador government, Corriente Resources (CTQ-T, ETQ-A) is delaying the startup of its Mirador copper mine in order to minimize the company’s obligations to equipment suppliers.

The move comes as the death of Ecuador’s female defence minister Guadalupe Larriva temporarily deflates tensions caused by leftist President Rafael Correa’s efforts to rewrite the constitution in the unstable Andean country, where three presidents were ousted in the past decade.

Correa called for three days of mourning after Larriva and her daughter were killed in a mid-air helicopter collision on January 24.

In early December, Corriente said the federal government had asked it to temporarily suspend its Mirador project camp activities in southeastern Ecuador, in a bid to aid in the negotiating process between the government and anti-mining protestors.

Corriente said it agreed to the request in order to ensure the safety of local communities in the mine’s zone of influence and its supporters.

At the time, the Vancouver company said it will work with representatives of the incoming administration of Mr. Correa, on its plan to develop Mirador and to ensure that the project construction activities and mine development will continue to have the full support of the government of Ecuador.

However, in an update released on January 25, Corriente said its plan to start production by late 2008, was based on having key permits and government agreements completed by now.

Corriente shares, which traded as high as $7.50 in May 2006, closed at $3.09, in Toronto, Jan. 25, up 19.

Since the required agreements are still being processed and the company is still under a suspension order by the Ministry of Mines, Corriente said its board of directors has elected to minimize its existing project obligations with suppliers of key long-lead time components to the project.

“Based on current information, it is estimated that the start of production at Mirador will be delayed from late 2008 as planned, to mid-2009, largely due to adjustments to long lead-time equipment deliveries as a result of this decision,” the company said.

Corriente also said it is not clear yet when field work at the project will resume.

However, Corriente chief executive officer Ken Shannon said the company remains committed to the project and nearby communities, with whom it has worked over the last six years.

“Ultimately, it is our belief that the will of the local communities to provide a better future for their children will be the deciding factor to proceed with the development of responsible, long term mining activities at Mirador,” Shannon said.