• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 2 hours Alberta govt to construct another WCS processing refinery
  • 2 hours What Can Bring Oil Down to $20?
  • 2 hours Let's Just Block the Sun, Shall We?
  • 2 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 1 day Regular Gas dropped to $2.21 per gallon today
  • 2 hours OPEC Cuts Deep to Save Cartel
  • 2 hours Venezuela continues to sink in misery
  • 6 mins $867 billion farm bill passed
  • 1 day Waste-to-Energy Chugging Along
  • 1 day Sane Take on the Russia-Ukraine Case
  • 4 hours WTO So Set Up Panels To Rule On U.S. Tariff Disputes
  • 4 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 1 day Sleeping Hydrocarbon Giant
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

Aramco’s “Acquisition Hit List”

As Saudi Arabia prepares for…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Ecuador Hoping To Attract $1.5 Billion Investment In Mining Sector

Big profits are made when new exploration terrains open up. And news this week suggests one place on the planet is trying to position itself as the next big opportunity for mining investment.

Ecuador.

The country's Minister for Strategic Sectors, Rafael Poveda, told local press Monday that Ecuador's government is about to offer up a slate of mining exploration and development projects, looking for investment from foreign developers. Related: U.S. Shale Lifelines Running Thin

The Minister noted the government has identified 25 mining projects across the country for tender to foreign investment. With these areas planned to be offered for exploration and development licensing in the first quarter of 2016.

Overall, the government said it is projecting $588 million of investment in its mining sector during 2016. With officials hoping to increase those investment figures to $1.5 billion by 2017.

If this exploration licensing round does go ahead, it will be very interesting to see what the appetite is from foreign mining firms and investment groups. Related: New Silk Road Could See China Gain Control Of The Copper Markets

On the one hand, Ecuador has undoubted potential for big discoveries. Especially in gold and copper -- with deposits like the country's Fruta del Norte gold project representing some of the largest finds globally during the last exploration cycle.

But that cycle ended badly for Ecuador. With concerns about high taxes and legal stability in the country causing most project developers (including Fruta del Norte's owner, Kinross Gold) to exit the country. Related: Iran May Not Be That Attractive To Oil Industry After All

Minister Poveda said this week that the tax issue has now been addressed with new legislation bringing tax rates to 26 percent, on par with other countries in the region.

But the very fact that the Minister comes from a department called "Strategic Sectors" may give developers pause for concern -- given Ecuador's past forays into nationalism in the mining industry.

Watch to see what projects are put on offer in the first quarter of 2016. And what response the tender receives from the mining community -- which will be a good measure of whether this high-potential nation really is back on the right track.

Here's to proceeding cautiously,

Dave Forest

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News