Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Ecuador’s Ministry of Mining announced today that the country expects to receive $488 million in revenue in the next four years from the 237 mining concessions that it recently granted to private companies.
In a press release, ministry representatives highlighted the work of Lundin Gold (TSE:LUG), a Canadian company that has invested more than $400 million in the construction of different facilities around its Fruta del Norte project, in the southeastern province of Zamora Chinchipe.
The high-grade property boasts Probable Mineral Reserves of 4.8 million ounces of gold and 6.34 million ounces of silver (15.5 million tonnes at 9.67 g/t Au and 12.7 g/t Ag).
In addition to this deal, the Lenin Moreno government expects to increase its cash flow thanks to the agreement it has reached with IVN Minerales Ecuador, a subsidiary of Canadian INV Metals (TSE:INV), for the exploitation of the Loma Larga project. This project is located in the southern Azuay province and has an anticipated annual gold production of approximately 150,000 ounces over a 12-year mine life.
The Ministry’s statement also said that the Secretary of State granted 414 artisanal mining licenses and 36 small-scale mining titles. “The regulation of this sector will create over 9,000 jobs,” it reads.
At the same time, Ecuador’s National Mining Company signed three contracts with 23 small-scale miners in Muyuyacu, Azuay. The aim is to operate 33 mining sites which, company officials say, would generate 1,800 jobs.
