On July 13 (Sunday), the Ecuadorian government and the nascent mining industry are engaged in a legal battle over a controversial fee announced last month.
The industry believes that the fee will hinder exploration tax revenue, and the mining sector has already filed a petition for cancellation with the Constitutional Court. The government claims that the measure will raise funds to combat informal mining, thereby benefiting the industry.
"I look forward to presenting my position at the hearing," said Ines Manzano, the Minister of Energy and Minerals.
This South American country is facing an increasing threat from illegal mining. The government claims that the new fee will generate $229 million in annual revenue for the regulatory body ARCOM.
However, the industry argues that some junior exploration companies will have to pay fees higher than their market value, limiting their ability to explore more of the country's vast gold and copper resources. Chamber President María Eulalia Silva stated, "This will only make Ecuador disappear from the investment map of the region."
(Comprehensive report from Wenhua)
