The results of a referendum held on Sunday (Sep 28) in support of Ecuador's new constitution represent a step closer to determining the future of the country's mining sector, mining lawyer Patricio Ruiz told BNamericas.
"The constitutional framework is already in place. Now comes the second phase which is drawing up a mining bill or a reform to the government's version," he added.
This week, Ecuador's President Rafael Correa said his administration completed the first draft of the new mining bill, which must respect the ideas of the new constitution before it can become law.
Correa claimed a resounding victory on Sunday in the referendum for the new constitution that gives him enhanced powers.
On Tuesday - with over 96% of all votes counted across the nation - approval for the new constitution had reached 64.04%.
The new constitution gives Correa more power to regulate the economy. The charter will also expand his control over certain industries and strip the central bank of its independence.
MINING MANDATE
Ecuador's constituent assembly passed a mandate in April suspending all mining activities for six months to allow time for preparation of the mining reform bill.
Ruiz said the deadline set by the mandate expires on October 22 and the country's ministry of mines and oil (MMP) will be forced to renegotiate concession permits if a new mining law is not in place by that date.
However, the MMP already withdrew 1,664 mining concessions in September and returned them to state control due to noncompliance with rules established by the mining mandate.
Among the areas returned to state control 85 were held by past officials, or their relatives, who worked at the former ministries of natural resources, and of energy and mines.
The rest of the concessions were pulled when holders neglected to renew them by legal deadlines, which have required yearly payments since March 31, 2004.
Several experts in the mining sector who previously spoke with BNamericas agree that the new constitution in its current state will not allow for sector development.
