/>iLatin American Region Enviromental Report, Second Quarter, 2013
Ecuador Considers Proposal to Reduce Environmental Permitting Requirements for Mineral Exploration
On June 14, 2013, the National Assembly of Ecuador approved a bill (the “Bill”) submitted by President Rafael Correa to amend Ecuador’s 2009 Mining Law (Ley de Minería; the “Law”). The Bill would accelerate environmental permitting of new mines, alter royalty and tax formulas, increase leaseholders’ liability for illegal mining, and prohibit the use of mercury in mining. Although Correa’s government submitted the Bill, he did not sign it immediately, but instead vetoed two provisions and sent it back to the National Assembly for further action.
If eventually enacted, the Bill would reduce the administrative burden on mining companies during the exploratory phase of projects by delaying the environmental impact assessment (“EIA”) requirement until sites are proposed for development. Rather than the existing process of preparing an EIA and waiting many months for agency review, the initial proposal to explore an area would be reviewed within thirty days. (Art. 3) If a company determines that a site is viable and proposes to develop it, the necessary EIA would be processed within six months, at which point, absent any objections or modifications from the environmental authorities, it would be deemed approved under the Bill. (Art. 14)
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