NEW COMPANY: Ecuador creates state-owned miner

QUITO — The government of Ecuador has created a new, state-owned company (Enami) to have a say in mining approvals. It was established on Dec. 31, 2009, when president Rafael Correa signed an executive order.

The Enami mandate includes sustainable exploitation of Ecuador's mineral resources and protecting the environment as well. The company has permission to create subsidiaries and enter into various agreements with domestic and foreign partners. As well, 50% of earnings must be paid to the government in the form of taxes and royalties.

The effect of the new corporation and tax regime on companies working in Ecuador (including Kinross Gold at Fruta del Norte) has yet to be determined.