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LatinNews Daily Report - 11 June 2013

Kinross pulls out of Ecuador

Key points:

  • The announcement comes as Ecuador’s national assembly is debating a new ‘mining and equitable tax reform’ bill that seeks to promote private investment in the underdeveloped mining sector. The bill seeks to establish a new framework for private sector concessions and proposes a windfall tax of 70% on mining profits.
  • Since acquiring the FDN concession – which is believed to contain 6.8m ounces of gold – from Aurelian Resources, Kinross has sought government guarantees for the project. Kinross had requested an extension of the economic evaluation period of the project set to expire in August –  at which point the firm was due to present a development plan or risk losing the concession – and agree a taxation scheme. However, last year Ecuador’s non-renewable resources minister, Wilson Pástor, said that the firm’s demands were “exaggerated”. In May, President Correa’s legal advisor, Alexis Mera, said

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