The chamber of mines, Camara de Minería del Ecuador, said last week's Executive Decree No 151 plotted a road map for the development of responsible mining as a key driver for the economy.
The decree provides a deadline of 100 days for the Ministry of Energy to determine the conditions under which formal mining must abide by. It also stated that the ministry must generate the rules to govern prior consultation processes for the free and informed consent of indigenous peoples in situations where government decisions could impact their territories.
The chamber thanked the president for the commitment to guarantee legal security, attract investment and combat illegal mining. "The implementation of the action plan … will definitely project our country as one of the main destinations for responsible national and foreign investment," it said in a statement.
Ecuador-focused explorer Aurania Resources also welcomed the decree. "Today is one of the most important days for the Ecuadorian mining industry in recent years," Aurania's legal counsel Dr Cesar Zumarraga said Friday.
"The document [Decree 151] defines the new public policy which includes clear principles of respect for mining rights and the promotion of best environmental and social practices that coincide with the desire of president Lasso's government to create a favourable environment for increased investment and exports in the mining industry."
Recently-elected Lasso had been widely expected to develop the mining sector as part of plans to stabilise the economy, although the move was likely to be unpopular with some segments of the population.
According to the decree, mining is set to be managed by the central government not by provinces.
Agencies have been tasked with improving environmental permitting and preparing for the reopening of the mineral concession application cadastre system.
Establishing a workable prior consultation mechanism is a key task for the Lasso government given that Ecuador's Constitutional Court ruled that indigenous groups must be consulted on decisions that can impact their territories and that the defeated presidential candidate Yaku Perez has long campaigned against the development of mining projects in indigenous lands.
Lasso is aware of the mining potential Ecuador has but he is also conscious of the opposition to it from indigenous groups under the Perez figurehead. Striking a workable balance between the two is essential to allow the sector to grow while respecting indigenous concrns.
The task is complex: prior consultation processes do not always result in consent being given and often, it can prove difficult to bring legitimate and representative indigenous leaders to the table. Without fixed timelines to the processes, a reluctance to participate in prior consultation mechanisms can effectively result in extensive delays or a de facto project veto yet strict timelines can undermine the concept of free and informed consent.
