Ecuador: Minister of Energy and Mines amends the instructions for stages of exploration and exploitation of mining concessions

By Ministry of Energy and Mines of Ecuador

On December 27, 2022, the Minister of Energy and Mines, Fernando Santos Alvite, issued the Reform to the Instructions for the Exploration and Exploitation Stages of Mining Concessions, Negotiation and Subscription of Mining Exploitation Contracts, through Ministerial Agreement No. MEM-MEM-2022-0053-AM that entered into force from the date of its subscription.

The document has the endorsement of the corresponding Administrative Units and responds to a necessary regulatory evolution for the mining productive sector.

This Ministerial Agreement reformulates the articles related to the terms of the advanced exploration period of mining concessions; and adds its effective accounting method, through a precise determination of the regulatory clock related to obtaining the environmental license.

In addition, 4 general provisions related to the environmental licensing procedure, the exclusive execution of previously authorized activities and payment of conservation patents were added.

The head of the Energy and Mining Portfolio, pointed out that "the proposed reform is in harmony with the regulatory regime of the mining sector and current environmental regulations, which allows accurate accounting of terms and periods within the phases of mining activity.

The issuance of this type of proposals contributes to the legal management of this State Portfolio, which is commendable”, he pointed out.

The object of the reform seeks to promote an orderly development and framed in the current regulations of the mining sector, in the medium and large-scale mining regimes. With this solid action, the National Government reaffirms its commitment to guarantee legal security with clear rules in order to promote foreign investment through the responsible use of the country's mineral resources.