Ecuador Mining: The law looks good, but it may be another year to wait

Big thank you to reader Ruben for catching this news report and sending it along.

Spiny Caesar

César Espinoza is the head of Ecuador's Chamber of Mining, and he was interviewed by local radio today about the contents of the new mining law (which he has obviously seen). He says he likes it, but it might be a full year before it comes into operation. Here are the two important direct quotes from the report as translated by me:

"We think that the general context of the law isn't bad; it has nearly 100 articles, the observations are profound, the Mining Chamber of Ecuador promotes the development of responsible mining and that the President of the Republic also promotes it."

(The law won't be applied in less than a year because) "it does not establish that the mining law is an organic (aka stand alone) law. It doesn't say it this way, and it will depend on many other connected laws that are not yet ready for approval."

In other words, it's a fair-looking law but there are yet more delays in the pipeline, folks. Welcome to my world. It cetainly explains why Corriente Resorces (CTQ.to) (ETQ) stock has done this today....

Corriente suddenly down 9%

....and why other Ecuador exposed miners have sold off sharply such as Dynasty (DMM.to) down 12% and Cornerstone (CGP.v) down 19%.

UPDATE: I'd like to share Q&A I've just had about this post with another reader.

MP wrote: "How long is a year in Ecuador? Are you aware of a web site where I can get
the conversion?"

Otto answered: "You see where i'm standing?.........Now, look over there........You see that tree I'm pointing to?........From here to the tree....that's how long."