Reuters reported that Ecuador expects companies including Canada's Kinross Gold to invest USD 7 billion in gold and copper projects in the next seven years, as the OPEC member tries to diversify its economy by encouraging mining.
Mr Wilson Pastor natural resources minister of Ecuador said that five projects will be signed in the next few months. He added that "The investment in the five projects will reach USD 7 billion in an accumulated way. The cycle to put the mines at full capacity will last approximately seven years."
Ecuador, an OPEC oil producing country, has a nascent mining industry. Some larger projects were initially delayed as the government of President Mr Rafael Correa hammered out new regulations for the sector.
Mr Pastor said that Kinross was in talks with the government, along with Canadian junior Ecuacorriente and US based International Resources. He said the three companies will sign agreements by June, with two other deals completed next year.
He added that "We have left two contracts to be signed next year, because their advanced stages of exploration are simply not finished. That will conclude this year and in the first quarter of next year we can hold talks."
Kinross's main interest in Ecuador is the Fruta del Norte project, which has proven and probable mineral reserves estimated at 6.8 million ounces of gold and 9.1 million ounces of silver.
Kinross says Fruta del Norte is expected to produce an average of 410,000 gold equivalent ounces annually over the life of the mine. It plans to submit Environmental Impact Assessments to build and operate the mine and processing facilities by mid 2011 and is aiming to begin production in late 2014.
Ecuacorriente plans to start building a copper mine in Ecuador with an initial investment of USD 631 million. Ecuacorriente is an affiliate of Canada's Corriente Resources, which in turn belongs to CRCC Tongguan, controlled by China's Tongling Nonferrous Metals Group and China Railway Construction.
Ecuacorriente said the Mirador project has estimated reserves of 25 billion pounds of copper located in the South American country's southern province of Zamora Chinchipe.
(Sourced from www.reuters.com)
