According to Ecuador Ambassador to India, Carlos Abad, the Ecuadorian government has engaged in conversations with private companies from India in search for insvestors for the soon-to-bloom mining sector of that country. That is good news from the investment standpoint. It’s important for the government of Ecuador to acknowledge the importance of working with experienced investors – I just wonder what does that mean for all Canadian companies that are already in the country. Is President Correa trying to replace them, or is he just trying to open the doors to foreign investors? The first scenario would pose a bad precedent for investors, whereas the latter would generate a general sigh of relief for those who already have, or were planning to invest in Ecuador.
Tags: Ecuador, investment, Mining Business
August 2, 2008 at 2:37 pm
Let’s hope Ecuadorian authorities are beginning to see the importance of having foreign investors and playing nice with them. President Correa’s administration has surely managed to scare investors in the past 18 months with their nationalist approach to business.
This banana republic has great potential to make huge strides in their mining industry only through fair open market practices. However, it will take some serious convincing to get new investors to take their chances after they saw how some mining companies were left out to dry through the government’s six-month moratorium on all mining activity. It must’ve been tough to explain to investors how they should keep their operations afloat without any chance to do real work.
Anyway, only time will tell the growth of the mining industry in Ecuador. Stay tunned.
August 2, 2008 at 3:00 pm
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor