Monthly Archives: February 2025

On January 24, 2025, the Ministry of Energy and Mines (“MEM”) issued Ministerial Agreement No. MEM-MEM-2025-0002-AM (the “Agreement”), declaring the electricity sector a priority to address the 2025-2026 dry season. The Agreement came into force on February 19, 2025.

Below is a summary of the measures ordered by MEM:

1. Conduct research on the integration of nuclear and geothermal energy within the country.
2. CELEC EP must begin public procurement processes for the acquiring and/or leasing generation capacity, as well as for constructing and commissioning transmission systems.
3. CELEC EP and public electricity distribution companies must take action to ensure the contribution of new power generation.
4. Petroamazonas EP must ensure the availability of fuel, including natural gas, for both current and future electricity generation needs.
5. MEM must prioritize the execution of concession contracts and the issuance of enabling titles for private-sector projects.
6. The Ministry of Finance, the Ministry of Environment, and the National Planning Secretariat are encouraged to expedite and prioritize their processes to enable additional power generation.

 

Carlos Torres, Senior Associate at CorralRosales
ctorres@corralrosales.com
+593 2 2544144

 

Mario Fernández, Associate at CorralRosales
mfernandez@corralrosales.com
+593 2 2544144

 

The Internal Revenue Service (“SRI”), through Resolution No. NAC-DGERCGC25-00000004 dated February 24, 2025, established the obligation for mining actors to submit the “Mining Annex” to report detailed information on their exploration, exploitation, beneficiation, local commercialization, and export of metallic and non-metallic minerals (the “Resolution”). This reform aims to strengthen control in the mining sector, prevent money laundering, and generate records that facilitate tax determination processes.

1. Obligated Parties

The following natural and legal entities, both public and private, are required to submit the Mining Annex:

• Mining concession title holders, commercialization license holders, and beneficiation plant owners;
• Those who have signed contracts for operation, assignment, mandate, and transfer of mining rights;
• Those engaged in exploration, exploitation, beneficiation, transportation, commercialization, or export of metallic and non-metallic minerals.

1. Information to be Reported

Obligated parties must declare the following information for each mining right code, as applicable:

• Identification data. Taxpayer Identification Number (“RUC”), corporate name or full name, legal representative, fiscal year, semester, type of mining right or contract, and address.
• Mining concessions. Location (province, canton, parish), workers affiliated with the Ecuadorian Social Security Institute (“IESS”), mining right code and name, hectares, date of granting and registration, validity, regime and mining phase, contract details.
• Commercialization licenses. Location, workers affiliated with IESS, mining right code and name, concessioned hectares, date of granting and registration, validity, mandate contract information, principal identification, number and value of sales.
• Beneficiation plants. Location, workers affiliated with IESS, client’s mining right identification and code, quantity and type of processed mineral, service value, and information on recovered and commercialized tailings.
• Mining operators. Contract location, workers affiliated with IESS, mining concession code and operation contract, validity.
• Mandate contracts. Location, workers affiliated with IESS, principal’s identification, number and amount of sales, agent information.
• Produced mineral. Type, quantity, unit of measure, stock of primary and secondary mineral.
• Purchases. Sales invoice number, supplier identification, quantity, unit of measure, mineral type, amount, and origin.
• Local sales and exports. Sales invoice, client, commercialization contract details, type, value, unit of measure, and quantity of mineral, contents, payable amounts for primary and secondary minerals, credit notes, customs declaration number, tariff subheading, transportation, and shipping guide.
• Investments. Mineral concession code and regime, total and pre-operational investment amount, complementary exploration, deposit development.
• Property, plant, and equipment. Details of registered assets and reported machinery usage.

1. Submission Deadlines

The Mining Annex must be submitted semiannually during September and March, according to the ninth digit of the obligated party’s RUC. Submission is required even if no information was generated during the period.

1. Consequences of Non-Compliance

Mining actors who fail to submit the Mining Annex as required by the Resolution, submit it late, or present incomplete information may face administrative penalties, including a fine of up to US$ 1,000.

 

 

Andrea Moya, Partner at CorralRosales
amoya@corralrosales.com
+593 2 2544144

 

Carlos Torres, Senior Associate at CorralRosales
ctorres@corralrosales.com
+593 2 2544144

 

By means of the third supplement to the Official Registry No. 734 from January 31, 2025, the National Court published Resolution No. 01-2025 (Resolution), which establishes a binding judicial precedent related to the payment of indemnities contained in article 51 of the Organic Disabilities Law.

According to the Resolution, to be entitled to the indemnification corresponding to disabled employees, or people who support disabled people, only the following conditions must be fulfilled:

1. That an untimely dismissal is configured.
2. That the dismissed person is disabled or oversees the support of a person with a disability.

Consequently, it is not necessary for the employee to inform the employer that they are a disabled person or that they oversee the support of a disabled person.

The Resolution, therefore, forces the employer to employ methods that allow to determine the condition of the employee whose untimely dismissal results in special indemnities that can reach important values.

Included below the link to access the full text of the Resolution.

 

Edmundo Ramos, Partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144

 

María Victoria Beltrán, Senior Associate at CorralRosales
mbeltran@corralrosales.com
+593 2 2544144