Cornerstone Capital Resources Inc V.CGP

And yet another article...

[momentum_seeker]

Ecuador's Pres To Send Changed Mining Law To Legislators


QUITO (Dow Jones)--President Rafael Correa will this week send changes to a mining bill to a commission of the legislature, Mining and Oil Minister Derlis Palacios said Monday.

That proposal will include a plan to charge royalties of a minimum of 5% on sales and not on production.

"Royalties on sales are better," Palacios said at a press conference.

During his weekly radio address on the weekend, Correa said the law will be sent to the legislative commission Wednesday.

Correa also warned if the commission introduce changes that affect the spirit of the law, he will send the project to a referendum, as the government's goal is to develop the mining sector.

The legislative commission will pass laws in Ecuador until a new Congress is elected through general elections next year.

The commission members were named among the members of the Constituent Assembly, which wrote the new Constitution that allows the central government, led by socialist Correa, to take a much larger role in the economy.

Last April, Ecuador's Constituent Assembly passed a law that froze mining sector activity by revoking around 80% of mining concessions and by suspending the other 20% for 180 days.

Palacios said a public auction will take place for the revoked concessions and for new mining concessions.

The draft law establishes two types of contracts: for exploitation and for services, but it doesn't specify the conditions of each contract.

According to Palacios, the service contract will be an option for private companies.

Local units of Corriente Resources (ETQ), Aurelian Resources Inc. (ARU.T), International Mineral Corp. (IMZ.T), Iamgold Corp. (IAG), Spirit Exploration Inc. (SPXP) and Mariana Resources (MARL.LN), among others, have mining concessions in Ecuador.

-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653; [e-mail]