Loading ...TORONTO, Aug. 20, 2014 (GLOBE NEWSWIRE) — The Ecuadorian government has announced plans to abolish the windfall tax which torpedoed Kinross Gold’s Fruta del Norte gold project.
Ecuadorian President, Rafael Correa, recently stated on national radio that changes would be made to the country’s mining laws, which he acknowledged, “…have been a failure on the part of the government.” Mr. Correa has a PhD in Economics from the University of Illinois.
The new taxation regime is expected to benefit companies like Ecuador Gold and Copper Corp. (EGX.V), which controls five deposits within the Condor Gold Project in southeast Ecuador including two development stage projects: Santa Barbara and Chinapintza — a joint venture with the Chinese Guangshou Group.
“The Ecuadorian government is working on a package of rule amendments to the mining code,” stated Ecuador Gold CEO, Glenn Laing, in an exclusive interview with Financial Press. “Sources within the ministry inform us that these new regulations are expected to be drafted sometime in Q4, 2014.”
The new mining laws are expected to change the investment risk profile of the country, creating interest from larger mining companies looking for big assets.
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