Aurania Resources Ltd (TSX-V:ARU, OTCQB:AUIAF). reported that Ecuadorian President Guillermo Lasso has issued Decree 151 that defines a new mining policy and provides a clearly articulated plan to support responsible mining in Ecuador as a key driver of the economy.
The decree defines a tight timeline for the achievement of specific action items, the company said.
"This decree from the office of President Lasso represents unequivocal support for exploration and mining that is done with due community engagement and care of the environment,” said Aurania CEO Keith Barron in a statement. “The Fruta del Norte gold deposit, brought into production by Lundin Gold (TSX:LUG) in 2019, represents Ecuador's first example of a mining operation that fits the framework envisioned by the government in order for the mineral industry to take its rightful place as a driver of Ecuador's economy."
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César Zumarraga, the company's legal counsel, added: ‘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."
Aurania said the Decree lays out the action plan (Plan) to develop an efficient and environmentally and socially responsible mining industry, to promote national and foreign investment, and to implement best practices for the exploitation of these resources.
The company said the Plan will guarantee the security of title, respect pre-existing mining rights, and will involve an inter-institutional strategy for the eradication of illegal mining with its associated social and environmental impacts in favour of legal and responsible mining:
- Legal. The Decree makes it clear that mining-related matters are managed by the central government, not the provinces or any other entity;
- Environment, Social, and Governance (ESG). The central government will incentivize the exploration and mining industry to adopt responsible social engagement and environmental management practices while ensuring that all labour laws and regulations are respected;
- Communication. The Ministry of Energy and Non-Renewable Resources (MENRR) is to work with other institutions of the state to communicate the benefits of responsible mining to the Ecuadorian people and local communities around mines while minimizing environmental impacts. This communication will focus on the conditions under which mines would be developed, the state's oversight of these activities, and revenue that would flow from successful mining operations.
- Prior consultation. Define the regulation under which free prior consultation will be undertaken with communities in the area of influence of proposed mines;
- Dispute Resolution. Generate optimal technical and legal conditions for the prevention of conflict and controversies; where these exist, to promote discussion between all parties and facilitate resolution of contentious issues; and
- Consultative Committee. Creation of a committee that draws on members of the government and private sector to develop sound mining-related governance policies.
Also, the company said the decree strengthens oversight and management of mineral concessions. Within 90 days of the issuance of the Decree, MENRR is required to provide a detailed report of all current mineral concessions.
In addition, Aurania noted that the state will provide transparent accounting and will communicate its use of proceeds from royalties and taxes obtained from mining. The state and responsible mining companies have the obligation to disseminate to the public at large, the amounts invested and the impact that mining projects are projected to have on Ecuador's economy.
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