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Bloomberg) -- Ecuador’s President Daniel Noboa submitted nine additional questions including ones on extradition and arbitration for review by the Constitutional Court for a planned referendum, according to a document with the questions provided by the Interior Ministry in a text message.
To boost foreign investment, Noboa seeks broader international arbitration options to resolve controversies regarding contracts, investment and trade, according to the ministry document.
In a repeat of a question rejected by voters in a referendum last February, Noboa aims to ask voters to permit the extradition of Ecuadorian citizens as well as widening options to seize assets from criminals
He wants to be able to revoke mining concessions in “territories of national interest” to fight illegal mining
Noboa seeks to broaden the scope of his right to submit fast-track legislation beyond economic issues and to allow Ecuadorians to be hired to work on an hourly basis as part of temporary contracts
NOTE: Ecuador Seeks Austerity to Win IMF Support for Economy Plan
NOTE: Ecuador’s Noboa Seeks Deeper Military Involvement to Fight Crime
Forgot to post the headline
MINING COMPANIES QUESTION ECONOMIC LAW
QUITO, DEC 29, 2023 (Agencia Ane)._ The Organic Law of Economic Efficiency and Employment Generation expressly prohibits the public-private alliance regime from being applicable to the extractive mining and oil industry and provides that companies dedicated to the extraction and commercialization of gold, copper and other minerals carry out self-withholding of up to 10% of the gross amount of each income tax transaction.
This Law, which was proposed as an economic emergency by President Daniel Noboa and unanimously approved by the National Assembly, has been in force since the 20th and now the government is working on its regulation.
According to private mining companies, the changes introduced affect the regime of the mining industry. These effects are:
Article 3 expressly prohibits the Public Private Partnership regime from being applicable to the extractive mining and oil industry.
Article 97 of the Internal Tax Regime Law is reformed by including the obligation of mining companies that market minerals must make a self-withholding of up to 10% of the gross amount of each transaction, in the manner determined by the SRI, as income tax. Said withholding will constitute a tax credit.
Article 35 replaces the third paragraph of art. 40 of the Mining Law, which established the obligation that, in contracts for the provision of mining services, 3% of the sales of the minerals exploited under the contract be dedicated to sustainable local development projects, through municipal governments and parish councils and, if applicable, to the government bodies of indigenous communities.
The new rule provides that the distribution of each 3% transfer will be distributed as follows: 45% for the provincial GADs, 35% for the municipal GADs and 20% for the rural parish GADs, belonging to the area of influence of the mining project. . The same article includes the destination that the different GADs must give to the resources obtained, which must be allocated mainly to infrastructure works, roads, irrigation, protection of watersheds, environmental management, promotion of agricultural activities, water treatment, management waste and environmental sanitation in general, physical infrastructure and equipment in general, etc.
Article 36 reforms article 67 of the Mining Law, which provides that the Ministry of Economy must carry out resource transfers directly. This power was exclusive to the Central Bank of Ecuador.
Article 93 of the Mining Law is reformed regarding the payment of mining royalties that from now on must be delivered directly by the Ministry of Economy to the provincial, municipal and parish GADs and to the indigenous communities, in the same percentages indicated in the case of art. 40 of the Mining Law, that is: 45% for the provincial GADs, 35% for the municipal GADs and 20% for the parish GADs of the area of influence of the project subject to payment of royalties.
Italian, He is probably just contracted to canvas investor’s opinions… reverse telemarketing essentially.. nothing more to him than that.. just oversold his role and importance..
Ship.. this is no criticism of you.. I think it’s you good you posted this…
My best judgement of this would be he is simply a generic bod, just contracted to gauge average investor opinions… telemarketing for feedback… nothing more.. he has probably just oversold his responsibility and remit in to something he isn’t.. giving it the big I am..
The official Solgold email address is no big deal. I’m a freelancer, that regularly works with the same group of studios.. I have an official email with a couple of them, even though I am not an employee… it’s no big deal. Most with a brain would ignore him at first contact, if he wasn’t using the official email.. so it makes sense
“ I can actually see a little uptick since we started calling people. Now you know. 😊 ”
And he is claiming to be solely responsible for the recent price improvement???
Hubris
Yikes…. This guy sounds like one of those self promotional ‘follow me and I’ll make you rich’ kind of guys on YouTube ads… all spiel without telling you anything… he may be useful, he may even be a nice guy… but Wow he doesn’t half sound like a snake oil salesman… where did they find this pedler?
Any monetisation event, JV or otherwise will be a positive, forward development, compared to the last 12 months.. anything that creates an opportunity to exit this share, this year, at a just reasonable profit, will get my vote.
With new management, new direction, and a renewed energy and optimism about our future in Ecuador
This doesn’t sound like a company in the process of selling its assets
Rcgl, I agree.. if we do get a bid this year, my money is on Jianxi… mainly for the reasons you say… then it’s up to BHP to simply decide how interested they still are… I wouldn’t rule out a real outsider like Vale, given they are focused on South America, but that is just me hoping…
Eish, if that’s for me, Pessimistic maybe, more realistic I’d say… I took off my rose glasses a while back..
The governments role in my view is probably quite pivotal here… They could be really playing hardball behind the scenes re new agreements after we failed in such a large way (by circa 200 million dollars) to fullfill our spending commitments on the last agreement.. Scot seemed sure we would have the agreements by year end.
Hopefully, all will be revealed whenever we get the new PFS… hopefully it comes with some further outline of our boards next steps.. hopefully we get it before summer
Hope is all we Private investors have..
Eloro, I didn’t state a sale will not happen in 2024… just not in the immediate future.. the recent couple of pence jump, in my view, doesn’t mean a sale is imminent… that is just Investors desperate over speculation during Christmas..
A Monetisation event could occur, but I just doubt it will occur any time soon.. we can’t force a major to buy us… just as you can’t convince a buyer to buy your house without offering a huge discount.. after they show interest… maybe that’s why management have shown no effort to improve the share price???
That’s a pretty accurate summation there Rcgl…
It’s been the worst kept secret for too long that Cascabel is available… but here we are, still waiting, still hoping..
We are like the distressed seller of a decent house… every buyer knows we have nothing else going on and need funds… know we can’t afford to keep it.. know we don’t have the expertise to develop it.. We will never get full value unless the miracle of a bidding war happens.
Every major knows we have thrown our cards in and are desperately seeking a way to monetise what we have, after all the years of bluff and poor management have failed to get us anywhere.
Our best hope here is for interest rates to fall quickly and considerably, to make the projects questionable finances more attractive..
A sale is not on any immediate horizon in my view.. and jumps in price, currently just 2-3 pence here and there are just caused by low volume and PI Christmas boredom in my opinion.
My concern is if, when the updated PFS is released, the finances are improved, mainly by using a higher metals price to massage through a higher IRR, rather than true project efficiencies, I can see this dragging on much further… well in to 2025 even… The markets and wider mining industry players will not be impressed, or rush in to buying the asset, and our share price will not move anywhere from single figures.
Reds going to start talking £1.50-2.00 again very soon…
“ expect the worst, but hope for the best”. This sounds like it could be Solgolds mission statement.
Maybe that will be the official outcome of the Strategic Review.
The board are going to get voted down on many counts at this AGM….. it is what it is now.
What happens post AGM fallout will be interesting.. and the implications for the needed, near future fundraising..
will they be able to get fundraising done above 10p?? Seems ambitious these days… Sad.
Who is Redknight posting these messages for??
He has everyone filtered.
I can agree to some of that Add, but we are now not in any position to demand the gov speeds up our IPA, or any licenses… as we are about to fail in our investment contractual obligations on the tenement.. by circa 200 million dollars.. this is probably a huge sticking point behind the scenes.
I’d happily take a low ball price for the sale of Porvenir at this stage, if it meant we were fully funded for the next 12 months, with room for some scout drilling at the most promising tenements.
A figure as low as 50-100 million would have many here saying it’s peanuts…giving it away… but I doubt it is.. and if it is giving it away, someone can make a better offer.
any achievable sale of Porv now, given its last study was buried/shelved instead of released, would be my preferred funding option…
Our board just need to show some effing conviction and make a decision for the near future direction of Solgold…
stop with the endless ‘strategy review’ and announce a firm, route forward out of this malaise.
The Ecuador government would probably be a lot happier too!!
Bozi, it’s the transparent conjuring up of minor news, just before the AGM that has me annoyed….
We all deserve better after the last 12 months