Ecuadore changing mining rulesQUITO, Sept 14 (Reuters)- Ecuadorean Mines Minister Galo Chiriboga said he favors large-scale mining, but warned he will cancel concessions that the government judges were granted illegally, a local newspaper reported Friday.
"I think we should not stick to a vision of small and medium-scale mining, but think of eventually heading toward bigger extraction," Chiriboga told Quito daily "El Comercio."
In the interview, Chiriboga said a group of experts is analyzing current concessions and that "if there are any illegalities we will push for the termination of concessions."
He did not explain how concessions would be judged or say if he backs a proposal by the government's head representative in an upcoming assembly rewriting the constitution to ban open pit mining.
Alberto Acosta, the government's top candidate for the assembly to be elected on Sept. 30, has said he would push to forbid open pit mining and grant local communities power to curb mining activity because of environmental concerns.
Chiriboga said his ministry will have an input in the assembly, but that major new mining activity will be on hold until the legislative body overhauls the constitution.
The 130-member assembly is expected to conclude constitutional changes in the second half of 2008, which will have to be ratified in a referendum.
Leftist President Rafael Correa, who is gambling his political future in the assembly, has worried investors with pledges to review mining concessions and renegotiate oil contracts.
Ecuador lacks so far any significant production of precious metals, but Canadian companies such as Corriente Resources (CTQ.TO: Quote, Profile, Research) (ETQ.A: Quote, Profile, Research), Iamgold Corp (IMG.TO: Quote, Profile, Research) and Aurelian Resources Resources Inc (ARU.TO: Quote, Profile, Research) are exploring for gold and copper