Ecuador´s action plan for the mining sector

Ecuador´s action plan for the mining sector - CorralRosales - Lawyers Ecuador
Through Executive Decree 151, signed on August 5, 2021, the President of Ecuador issued an Action Plan for Ecuador’s Mining Sector (from now on “Action Plan”) that seeks promoting development through the positioning of mining as a relevant industry of the country’s economy.

The main objective of this Action Plan is to articulate the development of efficient and responsible mining and promoting national and foreign investment to achieve the exploitation of Ecuadorian mineral resources through the best practices in the industry.

In turn, through this Action Plan, Ecuador also seeks to reaffirm its commitment to guarantee legal security by complying with existing regulations and respecting pre-existing rights.

With this in mind it is important to highlight the guidelines, included in the Action Plan, that the Ministry of Energy and Natural Resources (after this “the Ministry”) must follow. On this sense, the Ministry must:

1. Communicate clear and transparent information regarding the amount and destination of benefits and taxes received from the mining industry, and regarding public policy in this matter.

2. Design a comprehensive plan for the prevention, combat, and application of sanctions to the illicit exploitation of minerals.
3. Work with the Ministry of the Environment, Water and Ecological Transition so that the appropriate measures are adopted for environmental permits related to the mining industry to be resolved in a timely manner, so they do not interfere with investment commitments.

4. Instruct the National Mining Company ENAMI EP to facilitate associative agreements to attract and allow the participation of private investors.

5. Promote the adoption and compliance with international codes, protocols, agreements, declarations and instruments in each of the phases of the mining activity.

6. Encourage the adoption of socially and environmentally responsible practices and respect for labor rights and access to complaint mechanisms.

7. Develop a technological tool that facilitates and guarantees the correct exercise of current and future mining rights.

The Action Plan also instructs the Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources to prepare a detailed report about mining rights conceded under the regimes of large mining, medium mining, small mining and artisanal mining that have been granted and are in force.

Finally, the Action Plan provides that the Ministry presents a project to create a Public-Private Mining Advisory Council that will promote civil society participation in the construction of public mining governance.

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DISCLAIMER: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.

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