Tuesday, November 3, 2009

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THE PRESIDENT CORREA DECIDE FOR MINING AND SETTLEMENTS VISIT SMALL MINERS. Technical Report

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By: Vicente Encalada (Engineering Geologist)

After approval of the Legislative Committee in January 2009 Mining Law according to the new constitutional principles of 2008, the mining started pending the promulgation of the regulation according to the legal structure of Ecuador is responsible to the Presidency of the Republic, was the term very loosely be exceeded more than four months of law, without appearing the above and longed regulation.

Good news! President Rafael Correa breaks the tedious waiting with great force in the week of 20 to 24 October, introduced on the public agenda the discussion of mining issues, begins with a visit to the self-titled first canton Ponce EnrĂ­quez mining, surveying underground workings mining company Golden League; attends the Zamora province where local authorities and the population is polarized with respect to mining and culminates with Saturday's media chain.



Clearly the President expressed the government's decision to promote mineral development over the opposition of his former allies, environmentalists and some social movements, stating that Ecuador is a country with mining and among other arguments reminiscent of the paradoxical statement attributed to Mr. Humboldt ¨ Ecuador is a poor country sitting on a gold bench ¨ (In Peru, says the German scholar made the same claim on the country), expressed surprise at the large number of occupation generated by small-scale and artisanal mining and social immobility of the sector against opponents that few but very skilled estimated to assemble protest rallies. Committed government involvement in training and development bank credits to artisanal and small scale, in order to make responsible mining without contamination and without affecting in particular the sources of water, even loudly ordered the brand new sectoral Secretary , close a mine to meet the demand of a delegation of the site's Lopez.


resorted to the argument of lack of technology edge to explain the "smart" government decision to encourage the entry of foreign firms until the new State mining company created to acquire the relevant technical skills and can operate autonomously, but did not indicate the areas or sites of "bank gold "would be reserved for this entity.

The President has been very direct in supporting the exploitation of gold deposits of the Northern Fruit Association Aurelian - Kinross (the advertised discovery world's biggest miner of 2008), as a curiosity to learn the business of roles in stock it is recommended to revise the price change and stock movement of these companies during the past two years.
The forum opened by President Correa in the Ponce was interesting the complaint made by a "mine" about the exorbitant rates of contribution for the holders of concessions for the San Gerardo (Ponce Enriquez) charge to operating units , - which there is a true partnership mining. This issue was also responsible for resolving the Carolina Mr. Bernal, a professional who replaces the Secretary for Mines Dr. Jose Serrano, currently President of the famous Anti Corruption Commission of Government. It is worth remembering that the mining of San Gerardo was closed for environmental violations, on the eve general election (June 2009) by Dr. Jose Serrano, then reopened a plant in order for constitutional protection to not having followed "due process" and now all work is in full operation by decision of the new official .
is commendable attitude of government to define its position on the controversial mining issue, even when the indigenous social movement after a lifting test, very cautiously accepts discuss the water issue that has entwined with mining.
It should raise a warning flag to clarify the government and the public that the "gold mine" is to be built and will only be true when you count mine sites of proven reserves sufficient and bankable studies approved, ready to support a large-scale industrial process, the four or five mineral deposits deemed more feasible to produce a short time (four years ) will not generate significant resources to change the national macroeconomy. There is much skill on the part of companies to announce figures in hundreds of billions of dollars without telling the billions of dollars it will cost to operate and benefit the mineral, forgetting the production period, while very important parameter in mineral economics and public finance. Today in global mining projects are considered major gold mining stocks which have more than 3 million ounces and copper projects with a higher production rate to 100,000 tons daily. (In Peru are on the waiting list projects porphyry copper mine more than 200,000 tons a day).
recognition and support for small-scale mining, does justice to a sector that is injecting wealth upward from local communities and creating employment for thousands of Ecuadorians mass with little potential for being unskilled labor. For the first time a President recognizes and makes a decision to train and fund this unique productive mining, processing plant in an environmentally and socially responsible industry.
President Correa announced a strict challenge away with the use of mercury from gold mining, Salta conservative response: impossible! But if we remember that in the Inca and early colonial times was used ovens and methods huayras. If this historical fact is added to existing techniques with different methods of gravity concentration machines, simple techniques of acid leaching and torches that can easily reach high temperatures, then you may not use mercury to recover gold and native bulk solution is in the hands of professionals and practical miners.
Train a productive sector that has been built also, adding to everyday experiences, needs a lot of technical skill, social and educational programs and long-term persistent, we are all responsible for changing the small-scale mining, we a single force to position the Ecuadorian mining as a productive sector responsible.
Making Ecuadorian mining coordinated efforts may contribute to the national macro economy but let's not much hope that oil will replace the figures in the national GDP.
President Correa has given strong encouragement to mining miners is now time to respond with corrective actions for responsible mining accepted by communities and citizens.
promoters industrial mining should be further research in the field, develop feasibility studies and bankable projects, promote their projects hopefully not go beyond the truth and act responsibly away from the social and political manipulation.
small-scale miners must appropriate training, methodologies and techniques to adopt environmentally friendly and act responsibly as members of local communities and not as strangers in search of adventure wealth as the only trophy.


Look mining with optimism and objectivity!
Quito, October 2009.

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