The new mining law of Ecuador will significantly change the rules of the game for extractive companies. According to article 410 of the proposed constitution, if approved, Ecuador’s new constitution will cause mining companies to share a minimum 65 percent of its profit with the state:
“The State’s participation in the profits arising from the utilization of these (non-renewable) natural resources shall not be less than that of the company exploiting them.”
What would be interesting is to see how will this affect previous and future investments in that country. How will that change the mining scenario for the existent investors who entered the scene under different rules, and how will that cause them to seek greener pastures elsewhere?
