Ecuador,Indigenous Group To Discuss Possible Mining-Law Changes
October 06 2009 - 2:54PM
Dow Jones News
The Ecuadorian government and a group representing indigenous
peoples have agreed to discuss possible changes in the country's
mining and water resources legislation, bringing more uncertainty
to mining operations in Ecuador.
There were no immediate details on the substance of the
discussions or on any potential changes. Mining and water resources
management, and more specifically a new mining law enacted in
January, are at the root of a conflict that has shaken Ecuador for
the past week.
On Monday, members of the Confederation of Indigenous
Nationalities of Ecuador, or CONAIE, met with President Rafael
Correa and high-level government officials for more than four hours
in Quito.
The goal was to restart a dialogue interrupted when violent
protests erupted in the Amazon provinces of Morona Santiago and
Pastaza. Unrest last week left a member of the Shuar native group
dead and 40 police officers wounded.
An initial agreement between the government and CONAIE was
expected to bring down roadblocks in the area, but local media
reports Tuesday showed some roads in Morona Santiago and Pastaza
still blocked.
Humberto Cholango, a leader of Ecuarunari, an arm of CONAIE,
said Tuesday that CONAIE will meet during this week with all the
Amazon's native communities to inform and consult them about what
transpired in the meeting with Correa.
"The roads will be unblocked next week," Cholango said.
Indigenous people are against large-scale mining projects in
their lands because "it harms our towns," Cholango said.
Ecuadorian lawmakers in April 2008 froze mining activity,
revoking around 80% of mining concessions and suspending the other
20%. The new mining law opened the door for more activity,
however.
The government partially lifted the ban in March, allowing
Canadian companies Corriente Resources Inc. (ETQ) and Kinross Gold
Corp. (KGC) to resume their explorations.
Recently Non-Renewable Resources Minister Germanico Pinto said
that the government will begin mineral production contract talks
with private companies next year.
Ian Harris, general manager of EcuaCorriente SA, a subsidiary of
Corriente Resources, said Tuesday that "it is too early to talk
about the changes in the mining law, because we don't know about
these changes."
According to Harris, many indigenous groups don't know the law
approved in January. He played down the potential for changes in
the legislation.
"It will be very useful that the law is discussed to allow
indigenous communities to know its real content," Harris said.
Correa has said that his government will maintain mining and oil
activities in the Amazon region.
The government also has said the new mining law opens the door
to a potentially lucrative and underdeveloped industry in the
country and that the country's mineral potential could amount to
about $110 billion.
Local units of Corriente Resources, Kinross Gold Corp.,
International Mineral Corp. (IMZ.T), Iamgold Corp. (IAG), Trilliant
Exploration, Mariana Resources Ltd. (MARL.LN), and others have
mining concessions in Ecuador.
Ecuador's current mining output is minimal. Large-scale projects
have generally centered on nonmetallic products such as cement.
-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653;
mercedes.alvaro@dowjones.com