The Ecuadorian Government signed six commitments to mining investment for USD 4.8 billionduring a visit by the president Daniel Noboa to Canada this Monday, March 4, 2024.
«As part of the official agenda, Minister Sonsoles García, together with Andrea Arrobo, head of the Energy and Non-Renewable Resources portfolio, signed six investment agreements with the objective of formally expressing the mutual interest of the Ecuadorian State and investors. to develop projects in the mining sector,” reported an official statement.
The Ministry of Production noted that “these agreements laid the foundations for future negotiations and collaboration, with a focus on sustainable, responsible and long-term businesses.”
The agreements will follow the procedures established in Ecuadorian legislation to determine the scope of the project, commitments, schedules, approvals and responsibilities of each party, added this group of State.
During his speech at the PDAC mining fair in Toronto, President Noboa presented the reforms he is adopting to attract investment for mining, such as the creation of a dispute resolution mechanism between the State and investors.
Noboa is the first Ecuadorian president to participate in PDAC, the largest mining fair in the world.
The Head of State traveled to Canada accompanied by his Ministers of Foreign Affairs, Gabriela Sommerfeld; Energy and Mines, Andrea Arrobo; and Production, International Trade, Investments and Fishing, Sonsoles García. Before directors of mining companies and investors, Noboa, who has just completed 100 days in power, assured that his Government considers the mining sector as an economic priority.
“Mining is an engine of national development and that is why we are here, thanking you for your support and interest in Ecuador,” said the president.
Arbitration goes to popular consultation
In this sense, the Minister of Production highlighted that the Ecuadorian Government is trying to reform the Constitution to allow the approval of an investment protection mechanism, an “international arbitration between private investors and the Government.” García affirmed that Ecuador is currently a good place for foreign investment. «We have political stability, which is good for predictability in investments.
We also have economic stability,” said García. And he added “we have a dollarized economy and a commercial investment policy of openness to the world. We have natural resources such as water, minerals and agriculture. And we have tax incentives.
And the opening of the mining cadastre?
The Minister of Energy and Mines, Andrea Arrobo, announced that the Ecuadorian Government is going to accelerate the withdrawal of concessions “unused, unpaid or occupied by illegal activities.”
«In addition, the Government of Ecuador is working on the reopening of the mining cadastre. I know you’ve heard a lot about this before. But the Government of Ecuador is working on this,” he added.
The mining cadastre, which has been officially closed since 2018, is the database for investors to request mining concessions, without which new exploration cannot be done. For her part, the president of the Chamber of Mining of Ecuador, Carolina Orozco, presented the mining potential within the framework of the PDAC.
Meanwhile, in Quito, social and environmental groups protested on March 4, 2024 in the vicinity of the Canadian Embassy, in opposition to a possible intention to advance on the mining border.
The work agenda also included a meeting with representatives of the Canadian Council for the Americas to report on the trade opening policy and the negotiation process of the trade agreement, a dialogue with Barrick Gold executives, and a meeting with Export Development Canada to promote technical cooperation in the structuring of PPP projects and the internationalization of new companies. The Ecuadorian Government also signed letters of intent to receive financing, for 120 million Canadian dollars, aimed at clean energy projects.
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