ECUADOR Law and Practice Contributed by: Roque Bernardo Bustamante and Claudia Bustamante, Flor Bustamante Pizarro & Hurtado
question, have quantified reserves sufficient to allow the exploitation of those reserves over the processing volume established for the special regime for small- scale mining and up to the volume established by law. Large-scale mining is considered to be that which exceeds the maximum volumes established for medi - um-sized mining. Non-Metallic Mining Regime and Construction Materials The exploration and exploitation of non-metallic min - ing must comply with the general rules applicable to mining concessions in the terms provided by the Min - ing Law and its Regulations. In the case of construction materials, the State, through the Ministry of Energy and Mines, may grant concessions for the use of surface clays, sands, rocks and other materials of direct employment in the con - struction industry, with the exception of river beds, lakes, sea beaches and quarries that shall be gov - erned by the limitations established by law. In the framework of Article 264 of the Constitution, each municipal government shall assume the powers to regulate, authorise and control the exploitation of arid and stone materials found in the beds of rivers, lakes, lagoons, beaches and quarries, according to the Special Regulations that will establish the require - ments, limitations and procedures to that effect. The exercise of competence shall be limited to the prin - ciples, rights and obligations contemplated in the municipal ordinances that are issued in this regard. The municipal governments shall not establish condi - tions and obligations other than those established in this law and its regulations. 1.6 Granting of Mineral Rights The granting authority for mineral rights is the central government, through the Ministry of Environment and Energy, which in turn has agencies in different regions of the country. The granting of a mining concession is an administrative act issued in a form and substance predetermined by the law and in a format pre-estab - lished from time to time by the Ministry. The terms and conditions of the administrative act are not negotiable. All mining concessions have the same terms except
for the area and remaining term of the concession. The law recognises different types of mining: small-scale, medium-scale and large-scale, plus non-metallic and construction material mining concessions. Ecuadorian laws are applicable to all mining conces - sions and the mining title does not contemplate inter - national arbitration. For the granting of mining concessions, the Ministry of Energy and Mines will call for a public auction for the granting of all metallic-mining concessions. Likewise, it will call for a public auction for the granting of min - ing concessions on areas of concessions that have expired or that have been returned or reverted to the State, in which the petitioners shall participate and present their respective offers in accordance with the procedure established by the law. The mining concession is an administrative act that grants a mining title, over which the holder has a per - sonal right, which is transferable prior to the manda - tory qualification of the suitability of the transferee of mining rights by the Ministry of Environment and Ener - gy, and on this may be established pledges, assign - ments in guarantee and other guarantees provided by law, in accordance with the prescriptions and require - ments contemplated in this law and its general regu - lations. The mining title, without losing its personal character, confers on its holder the exclusive right to prospect, explore, exploit, benefit, melt, refine, com - mercialise and dispose of all the mineral substances that may exist and be obtained in the area of that concession, becoming a beneficiary of the economic yields obtained from those processes, within the limits established in the present regulation. Mining activities may only be carried out once the prior administrative acts have been obtained. These prior administrative acts include acquiring an environmental licence and an independent certificate from the water authority that evidences that the proposed activities shall not have any impact on water sources. The mining concession shall have a term of up to 25 years, which may be renewed for equal periods, provided that a written request from the concession - aire has been submitted to the Ministry of Energy and Mines for that purpose prior to its expiry and a
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