Codelco hosted a conference on Mining and Education (II Encuentro de Educación y Minería) for 120 teachers to review the ways in which mining and its industry are important and enhance the life of students.  The company is also host of a Mining Display at the Natural History Museum  in Chile, which as been visited by almost 100k students this year.  Additionally, the company also launched its website www.CodelcoEduca.cl with resources for teachers and students. 

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During his Latin American tour (Mexico, Panama and Ecuador) Canadian Minister of Trade, Michael Fortier, discussed the possibility of a Free Trade Agreement with Panamanian President Martín Torrijos.  If it came to fuition, said agreement would considerably strengthen Canada-Panama relations to both their benefit.

Panama is host to several Canadian companies such as Scotiabank, Teck Cominco, Inmet Mining and SNC Lavalin, and educational entities like McGill University, St. Clair College and Durham College.  These entities hire locals and thus vitalize their economy.

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The race has officially begun!  The campaign to support the proposed new Constitution drafted by the Government was kicked off last Saturday.  The Government enlisted the support of about 100K Ecuadorians to launch its campaign for the YES.  Rumor has it that some of the folks in attendance were promised not only a good time, but also some cash incentive to participate.  On the other hand, the NO supporters have also launched their efforts through media campaign designed to highlight the risks of a YES and pinpoint why they feel that their country will be better off with the NO.

Some say that the YES is losing ground, but the road is still ahead and anything can happen between now and September 28th.  This brings about questions about what will be the future of mining if the referendum gets a green light vs if it gets banned?  The Government has announced that the new mining law will be approved shortly after the September 28th election. No matter what, this is a frenzied time for investors in Ecuador and I’m sure time cannot fly fast enough for them to find out what’s really going to happen. How will their investments fair to this crisis and what will happen to the thousands of workers they laid-off last May when the Mining Mandate took effect.

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?

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Back in July Rusoro was confirmed as the partner of choice of the Venezuelan Government for gold exploitaition projects in that country.  Today,  it has been announced that Rusoro has entered a partnership with the Venezuelan Goverment to mine La Camorra and Isidora in the State of Bolivar, Venezuela.

This comes a result of a “Mixed Enterprise” between the company and the Government, with a 50/50 participation. 

The Isidora project alone reflects the following data:  Proven and Probable Mineral Reserves at Isidora (March 2008) are 168,000 oz Au (161,900 t @ 32.3 g/t Au). Mineral resources for Isidora are 331,000 oz Au (470,000 t @ 21.9 g/t Au) of Measured and Indicated and 45,000 oz Au (99,000 t @ 14.1 g/t Au) of Inferred.

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I cannot say enough about this posting.  So I suggest you all go check it yourselves.  Again, worth repeating: “BAD LAWS MAKE FOR BAD MINING. OR NO MINING AT ALL”  In my dreams: Latin American leaders, please take note and see if the shoe fits… 

What Latin America needs is mining for development, not lousy legal traps to make things stall.

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Central Sun Mining will help provide drinking water for 10 communities surrounding their mining projects (Minas Orosí & Mina Limón).  The company will provide logistic support, workforce and equipment for the project.  The total expense nears $1.5 million and was a donation of the Canadian Water Fund.

Additionally, Central Sun Mining will also give its workers property titles to the land where their homes are, thus turning them into homeowners. Kudos!

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Elvis Balbuena, Chair of the Public Works, Services and Communications Commission, asked authorities to exercise caution regarding the two statutes on mining concessions for exploration and exploitation.  He argues that as they are written these laws relinquish their national sovereignty.

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William A. Petty, Chairman and President of Franklin Mining, Inc. announced that the company he represents signed a Letter of Intent with Epsur for future development of oil fields in the northern part of Argentina.

The company has yet to release any specifics about this Letter of Intent, so check in again at a latter time for more information.

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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.

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