Ecuador mining

It looked like a great idea on paper: change the law in order to attract more investments into the mining industry and diversify the economy away from a dependence on oil exports.

But that ambition was dealt a major blow on Monday after Canada’s Kinross Gold Corporation said it would scrap plans on a $1.3bn mining project in southeastern Ecuador because of a dispute with the government over a hefty windfall tax on revenues of 70 per cent. Read more

Ecuador, the smallest of the OPEC members, is working hard to diversify away from a dependence on oil exports.

So now the country’s leftwing president, Rafael Correa, is pushing for a new law to fast track mining contracts and investments in the Andean country. Read more

Mining has been the backbone of the recent growth of Bolivia and Peru. It also seems to be potential money spinner for their Andean neighbour, Ecuador. But despite certain ideological similarities, when it comes to mining, the approaches of their leaders seem to differ.

In Bolivia, after some protracted protests, the government of Evo Morales on Thursday signed a decree authorizing the seizure of a silver deposit operated by South American Silver, part of a Canadian mining group. Read more