Guild is confident that incentives will help the mining sector to take off

It is expected that tax benefits under the Law on Production Incentives and Tax Fraud Prevention for the large mining sector (15 years of tax stability and tax credit for the Overseas Remittance Tax), contribute so the activity can takeoff, after being paralyzed, said Javier Cruz Plata, President of the Mining Chamber of Ecuador.

In addition, he acknowledged that for nine months the government makes an effort to improve conditions and attract mining investment. This, after the sector was found paralyzed by the lack of legal framework and that after the issuance of the mining law there was no positive response from the sector. Cruz explained that mining investment in recent years has been nil.

The union representative indicated that in addition to the law of incentives there are more aspects that seem positive for the industry, among those he highlighted: in June 2013 the mining law was issued, the Ministry of Mines will be created in these months, the issuance of the regulations of the Act is expected.

In recent weeks there has also been some interest from foreign mining sector. The Minister Coordinator of Strategic Sectors, Rafael Poveda Bonilla, met with the Chairman of Codelco, from Chile. He will participate in studies of advanced prospecting in the Llurimagua; while the Ministry of Non-Renewable Natural Resources and the Chinese company Powerchina Xibei Engineering Corporation Limited signed a commercial agreement for mining research for future projects in the country.