Lundin, Beaty bullish on Ecuador’s prospects

VANCOUVER — There are some savvy investors who are banking on a profitable shift in the Ecuadorian government’s approach to mineral exploration and development. The country has been high on the socio-political risk ladder over the past few years, but recent overtures by president Rafael Correa and his government seem to indicate a strategic shift aimed at attracting international mining capital.

Ecuador is the smallest member of the Organization of Petroleum Exporting Countries based on total production, but it relies on oil to supply roughly a third of its federal budget.

Prices for Ecuador’s Oriente crude have fallen significantly since congress approved Correa’s annual budget proposal in late November, which has forced the government to cut funds for new schools and police stations in order to maintain outlays on oilfields and other strategic projects earmarked to generate revenue.

And mining offers Ecuador one viable alternative to such an energy reliant economy. 

The country’s mineral prospectivity remains extremely high given its underexplored status and geographic position between the prolific mining jurisdictions of Peru and Colombia.

 Read the complete article at NorthernMiner.com/news/lundin-beaty