Kinross Gold (K-T, KGC-N) and Corriente Resources (CTQ-T, ETQ-X) say they have received official word from the government of Ecuador that they can get back to work.
“We have received a letter from the minister of mines and petroleum authorizing the company to re-initiate mining development activities in Ecuador, and we are currently reviewing this letter with our Ecuador team,” a spokesperson for Kinross said via email.
As reported by The Northern Miner on March 4, an official from the ministry of mines and petroleum visiting Toronto for the Prospectors & Developers Association of Canada convention (PDAC) said the government imposed ban on mining activities had been lifted and letters notifying specific companies of this were in the mail.
That pause in mining came almost a year ago, when the government said it wanted to complete its new mining law before any more work was done.
In January of this year a new mining law was approved. And while details are still being sorted out, officials say it will include a provision for the government to earn roughly half of a mine’s profits through taxes and levies.
In the meantime, both Corriente and Kinross will have to update their environmental studies and gain authorization for water usage.
The wait for other foreign miners, however, will be longer.
Government officials are set to visit sites owned by Iamgold (IMG-T, IAG-N), International Minerals (IMZ-T) and Dynasty Metals and Mining (DMM-T). After assessing the projects further it will decide whether or not to lift the bans.
As for Corriente, rumours persist that a takeover of the company could be imminent. Back in December it announced that it was in talks with an unnamed third party to sell itself and extended its exclusive negotiation period to March 31.
In Toronto on March 17 Corriente shares were up 13¢ to $5.38, Kinross shares were down 34¢ to $19.88, Iamgold shares were down 15¢ to $8.91, Dynasty shares were down 3¢ to $5.17 and International Minerals’ shares were a penny to $2.98.
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