26 www.resourceworld.com
D E C E M B E R / J A N U A R Y 2 0 1 7
The history of Ecuador, the Spanish word for equator, goes back some 8,000 years and has
been characterized by various conquests – the Incas and Spanish, for example. The country
achieved independence from Spain in 1830. It has not been a smooth ride for the nation of a
little over 16 million people who have had to deal with civil strife, smallpox, banking crises and
well-intentioned but wrong economic policies. Despite these hardships, Ecuadorians are known
for their kindness and generosity in sharing, for example, their food with others less fortunate.
Much of Ecuador's revenue has been derived from petroleum plus some agriculture; however,
with the low price of oil it became apparent that the potential mineral wealth of the country could
be developed with the right approach. Mining operations could provide well-paying jobs and
generate substantial revenues to enable the government to build needed infrastructure and help
alleviate the high level of poverty.
New mining policies could attract foreign investment which has been one of the lowest in the
region and that's exactly what the Ecuadorian government is doing. Javier Cordova, Minister
of Mining, told Resource World, "We have been making a very important effort for the last, I
would say, two or three years to understand what the mining industry needs, how we needed
to adjust to our taxation and improve the mining code in order to attract foreign investment and
foreign mining companies to develop Ecuador's mining potential."
The Ecuadorian government engaged Wood Mackenzie, a US-based international consulting
company, to advise and recommend changes to the tax code with a view to making the coun-
WiTh a neW MinisTrY Of Mines, ChanGes TO The Tax COde and neW infrasTrUCTUre, plUs prOspeCTiVe
GeOlOGY, eCUadOr is lOOKinG VerY aTTraCTiVe TO Mineral explOrers.
by Ellsworth Dickson
Javier Cordova, minister of mining
ecuador. photo courtesy embajada
del ecuador en Canadá.
Ecuador: open
for business
