The formal mining sector agrees to fight, prosecute and sanction illegal mining in order to eradicate it, which is what President Daniel Noboa’s second package of proposals to the people’s consultation calls for, but he has objections and would not agree. I agree with question 3 which addresses that topic.

According to the Executive Government, illegal mining is a transversal problem, as it permeates aspects related to national security, environment, tax collection, social, among others.

Mining companies among the companies with the highest net profit in 2022, the sector looks at the results with optimism, although there are also reservations

According to experts, the country already has tools to combat irregular activities in the sector, and what should rather be done is to strengthen and train the control agencies, as well as the public forces and the judicial system, since the issue that is over “ratifies something that the state can already” and therefore “there is nothing new”, although it was saved from the point of legitimacy.

Question 3 reads: Do you agree that, in order to eradicate illegal mining, the areas listed in Appendix 3 should be declared areas of national interest, with the purpose of assessing, just once, the relevance of withdrawing mining concessions?, in order to guarantee the correct use of mineral resources and the fight against organized crime?

Attachment 3

Appendix 3 shows that four geographical areas were identified where the presence of illegal mining was detected, namely:

The appendix also indicated that the Ministry of Energy and Mining, in coordinated work with state authorities, will determine the areas affected by illegal mining within the framework of mining concessions, as well as in other mining rights (agreement on the exploitation of ores, licenses and permits, authorizations for installation and operation, facilities for smelting and refining and market permits).

For this, it must also be taken into account that illegal mining activities are carried out mainly in exploitation, processing and marketing.

Furthermore, after determining the specified areas or activities of illegal exploitation, processing and commercialization of mineral raw materials, the President of the Republic will issue an appropriate executive decree declaring areas of state interest, and will order the Ministry of Energy to implement 1. activities, technical and legal measures that enable determination of those mining rights that would enable illegal mining activities, in order to initiate administrative proceedings for the termination of rights.

What do the experts say?

The Executive President of the Chamber of Mines of Ecuador, María Eulalia Silva, indicates that the industry welcomes the government’s intention to fight illegal mining, “but this is not the way.”

Lawyer, expert on mining issues, Andrés Icaza says that the state’s ability to cancel a mining concession where the concessionaire allows illegal mining is already stated in the Mining Law. “There is nothing new in that part of the content of the question.”

However, if this issue were to happen, he considers it healthy to give legitimacy to the state body for the fight against illegal mining and turn the fight against illegal mining into a national issue.

Mining exports would triple by 2030, reaching $9.191 billion, according to the Government’s optimistic scenario

Although there is no official data on how much money is moving through illegal mining, according to the president’s document, it is estimated that this activity generates between 800 million and 1000 million dollars a year, which Silva qualifies as very serious: “It is “It is literally in our face with the draining of resources that belong to all Ecuadorians.”

It points out that illegal mining is absolutely disastrous, not only in an ecological sense, but also because of the social decomposition it brings with it and on which they agree; however, they comment on the question. “Conducting a deeper analysis, what was said in that question is the cancellation of concessions in order to stop illegal mining”, and stopping or canceling formal concessions will not prevent the progress of illegal mining, but quite the opposite, and it was seen that when it is stopped, formal mining advances illegal mining.

Icaza points out that the question also mentions the efficient use of natural resources, but that “small” question remains loose, because it must be taken into account that illegal miners are “people and people move” and that where there is “gold” the outcrops are very close surface, approximately 40, 50 meters underground or in alluvial areas, in rivers, because they are easy to exploit, and they are not very expensive, and gold is the best form of money laundering.” than any other criminal activity” , which does not only refer to the issue of drug trafficking, but in general, since a bar of unrefined gold, which is more or less the size of a standard cell phone, can cost $25,000.

As an example, Silva states that if now illegals can enter areas like Buenos Aires, they do so, and the moment the operation takes place they withdraw and go to another place, “it’s not like they’re going home.” “What I mean is that there will always be this mobility, so what is going to be done, to declare the whole of Ecuador revocable for concessions, it would be an attack on legal certainty, it could end up generating contingents of international arbitrations if it is done.” talking about the cancellation of concessions, which cannot be justified.”

There are already legal instruments for sanctioning

In this sense, it indicates that there are already legal instruments to control, prosecute and sanction illegal mining and that they do not focus only on the Comprehensive Penal Code and the Mining Law, there are others as well, but that they nullify the concessions granted by law The Ecuadorian state would be “nonsense”.

46.7% of mining in the Amazon is done within indigenous territories

The lawyer says that it must be taken into account that in order to cancel a mining concession, the Law on Mining does not establish the need to declare it an area of ​​interest, because the state has three basic powers: granting, managing and extinguishing mining rights. “Those three powers are in the law and are discretionary powers of the state. The law already gives these powers to the state, so there is no need to declare an area of ​​interest.”

What should be improved?

Silva indicates that the sector recognizes that the fight against illegal mining is a big challenge for the country and in order to fulfill this goal, he believes that control agencies, public forces and administrative forces must be strengthened and trained. and debugging. Furthermore, he points out that the suppression of illegal mining is not only an obligation of the executive, but also of the judicial authorities, because there is no proper action according to the complaint, as the mining policy must be defined and strengthened.

Icaza adds that the state should work on modernizing the control of illegal mining, since the mining sector deserves greater protection, innovate the figure of administrative protection in regulations; explore the difference between informal, artisanal and illegal miners; implement an electronic system.

Gold is at historical prices: 2,040 and 2,050 dollars per ounce, and that – he adds – makes it a good business, for which he also recommends work on trade, export and production control. “I am not saying that the state is not doing its job, because it is a very dynamic activity, it is constantly changing and developing, so the state sees its obligation to also be very dynamic in these matters.”