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The mining industry is a sustainable alternative to meet the needs of the country.
MarĂa Eulalia Silva, executive president of the Ecuadorian Mining Chamber, explained that the development of formal mining, with all the controls and legal requirements, is a sustainable alternative to meet the country's needs.
If not promoted, a significant source of wealth would be turned over to illegal activities. Thus, the debate should not be whether mining is allowed, but what type of extractive activity we are willing to promote as a society.
Q. How much has mining really grown in the country and what is its impact?
For the second half of 2019, the two industrial mines begin to operate. Actually, 2021 was the first full year of production and it was predicted that we were going to end up with $1.6 billion in exports; but we were wrong. The final figure was $2.1 billion. For 2022 we will see how we finish, but only in the first semester $1,400 million were registered. This is achieved with only two industrial mines. The contribution of small mining averages 25%. The Spurrier group carried out an economic impact study which establishes that, if only the twelve most advanced projects materialize, exports would be generated for $176,000 million in 30 years and more than $44,000 million for the State.
Q. How much of the mining potential has been discovered and exploited?
We are exporting copper concentrate, gold concentrate, doré bars, and some silver. The real potential of Ecuador we still do not know. You need to explore; open the mining cadastre and grant concessions to serious companies. With less than 8% of the concession territory, world-class deposits have already been found. For example, Standard and Poor's determined that Cascabel, in Imbabura, is the second best deposit found in the world during the last decade. We are just scratching the surface, and with that wonderful things have been found. Ecuador can become an important participant in the fight against climate change. There is no ecological and energy transaction without minerals. The country has those resources and can take advantage of them.
Q. If the impact is so great, why does mining have so many detractors?
Those who are opposed to mining are less than they seem, but they make more noise. You will not find people who go out to the streets to demand that they want mining. Through a perception study carried out last year, we determined that 75% of the surveyed population said they agreed with responsible mining. Selling an anti-mining speech is very easy. Selling an idea based on fear does not require much thought. The vast majority of opposing voices have a personal agenda.
Cont….
Q. How can mining be prevented from making the same mistakes as oil?
The country owes much of its development to oil. However, much of that development was not seen in the poorest areas. I don't think it was a problem of the oil industry, but of how the State distributed the wealth. It must be taken into account that the oil industry was developed 50 years ago. Today there is a greater exercise of citizenship and two years ago, Ecuador is part of the Extractive Industries Transparency Initiative (EITI).
The Mining Law clearly establishes that 60% of the royalties have to go back to the areas of influence. Fruta del Norte and Mirador have already paid advance royalties of more than $165 million. That means that at least $90 million should be invested in the areas of influence. That is not up to the industry. What you have to do is pay and you already paid. Mining is the most sustainable option to replace oil wealth. If there are things that go wrong, solutions are sought; but the door to an activity with potential is not closed.
Q. How to deal with the fact that legal and illegal mining are often put in the same bag?
Illegal mining affects us all. Enormous environmental liabilities are created and drug trafficking mafias, extortionists, human trafficking, hitmen are involved. Illegal mining also affects formal ones due to a reputational issue. In a country where industrial mining has only been in operation for two years, people hardly know the difference. I am from the generation that still remembers the shots that appeared on television of Nambija. Shots of small children carrying sacks of stones. So, it is assumed that mining is Yutzupino, Buenos Aires, Zaruma. But nothing to see. The formal mining we are talking about is luxury. I was last week in Fruta del Norte, and they only occupy 8% of the concession territory. Everything else goes to conservation.
P. What is expected of the dialogue tables between the Government and the indigenous movement?
Hopefully the dialogue tables become an opportunity to do things right. This dialogue cannot go against the Constitution, legality and common sense. If what you want is to satisfy the social demands of communities, then you have to give those communities an alternative.Stopping mining is not an alternative. Not only that this would imply a series of legal contingents, which the country is not capable of dealing with; but above all that an option for development and improvement of their quality of life would be taken away from indigenous communities. One of the main criticisms against formal mining is that it does not comply with prior consultation. Who is responsible for this? Prior consultation is a duty of the Ecuadorian State, not of the mining companies. The 2008 Magna Carta establishes that it must be done in areas where extractive-type projects are planned and that contain indigenous, Montubio, Afro-descendant communities and nationalities in th
Cont …
in its territory to indigenous communities and nationalities, Montubias, Afro-descendants. This has not been done due to lack of law. The companies carry out social responsibility work (information, communication and socialization). This does not replace the role of the State. However, it is important to emphasize that prior consultation does not represent a veto power; It is not asking the population if it allows or does not allow. In other countries such as Peru, prior consultation is carried out according to the parameters set by the International Labor Organization (ILO); that is, as a mechanism for citizen participation to inform. The economic future of an entire country cannot be consulted in a community. We would not only be contravening the Constitution; but also the principle of authority and sovereignty of the State.
Q. Are popular consultations the solution to resolve conflicts with those opposed to mining?
Local popular consultations cannot contradict the mandate of the Constitution. It is clearly established that mineral resources and their administration are the responsibility of the State.
The mining industry is not against regulations, controls and monitoring. What it asks, like any industry in the world, is that the rules of the game not change once the projects begin. Having a popular consultation in Quito is terrible because if what we want is to attract investment, for dollars to enter in a clean way to invest in social and development issues, a local consultation drives all that away.
Mining can coexist with other economic activities. The La Plata project in Sigchos (Cotopaxi) is carrying out an agricultural project so that the people of the area begin to grow competitive crops. They do it hand in hand with international organizations because the idea is that when the mine is finished, the populations are consolidated and have development options.
Formal mining does not displace populations; nor does it throw mercury into the rivers. Mercury is not even used now. That only happens with illegal mining. The amount of water that enters a mining project is that allowed by the environmental license. It is monitored and recirculated. In the end, it is treated before being returned to the ecosystem. (JS)
“We must all work for a better country. But, for that, a real development alternative is needed. You need money to face child malnutrition, poverty, unemployment. That money has to come from a sustainable source like mining.” MarĂa Eulalia Silva, Executive President of the Mining Chamber
End
DBW
Thanks for sharing some on topic material.
I see we're mentioned specifically again in terms of Ecuadors mining future...............
Just need to see some genuine interest and moves by those with the $$$'s to get this moving!
It's in everyones interests!
atvb
BN.c
BNC yep more coverage needed …. Summer out of the way and covid wearing thin, it’s time they made clear their intentions moving forward….what we have in the ground is pretty much unique at the moment and what all explores dream of …. Now let’s see some value realised
BHP’s CEO needs a win ( as Red said recently ) having publicly lost face twice recently. Solgold may be petty cash to them but I’ll bet they want it. If they bid low they’ll fail again …. They may well just sit on their hands ….. my view is that. to be taken seriously, they’ll need to offer 65p+ Alternatively they could see an easier way would be to buy NCM’s stake ( or NCM itself ) …. So many possibilities here just wonder what the catalyst will be