ECUADOR Law and Practice Contributed by: Roque Bernardo Bustamante and Claudia Bustamante, Flor Bustamante Pizarro & Hurtado
2. Impact of Environmental Protection and Community Relations on Mining Projects 2.1 Environmental Protection and Licensing of Mining Projects Licensing Requirements and Preliminary Conditions Before any activity on a mining concession can start, an environmental licence granted by the Ministry of Environment and Energy, must be obtained. There are different types of licence depending on the activ - ity contemplated. For initial exploration activities, the licence, called an environmental registry, can be obtained faster than for advanced exploration or exploitation, for which it can take up to two years to obtain the environmental licence. In addition, it is a requirement that an independent certificate from the water authority be obtained, evidencing that the pro - posed activities shall not have any impact on water sources. As a signatory of different international treaties, Ecua - dor also requires community consultation in cases involving indigenous communities and, in all cases, it is mandatory to disclose and inform the people of the area about the potential environmental impacts of each activity. Community rights and continuous con - stitutional actions against mining companies brought by political leaders are a serious concern for mining investors and have to be analysed carefully before entering into any project in Ecuador. Environmental licensing is an obligatory process for mining concessionaires, so that they can proceed with the different mining stages, and this must be man - aged through the Unified Environmental Information System (SUIA). Intersection Certificates and Environmental Classification of Concessions In order to obtain the environmental licence, it is nec - essary to request an Intersection Certificate which verifies the location of the concession within protect - ed areas, or not, since, if this is the case, it will be necessary to act differently. In all cases, the mining title holder must obtain from the National Environmen - tal Authority the Intersection Certificate from which
Commercialisation, Marketing and Export The mining law establishes the right to free commer - cialisation; the holders of mining concessions can commercialise their production freely inside or outside the country. However, in the case of gold from small- scale mining and artisanal mining, the Central Bank of Ecuador will market it directly, or through public and private economic agents previously authorised by the Bank. Natural or legal persons who, without being holders of mining concessions, are engaged in the marketing or export of metallic mineral substances or in the export of non-metallic mineral substances, must obtain the corresponding licence from the Ministry of Energy and Mines, in accordance with the provisions of the gen - eral regulations of the law. The same licence must be obtained by the mining concessionaires who trade in metallic mineral substances or export non-metallic substances from areas outside their concessions. Natural or legal persons engaged in the internal com - mercialisation of non-metallic mineral substances, as well as jewellery artisans, will not require this licence. The marketing licences granted are valid for periods of three years, are non-transferable and can be renewed for the same periods. Clandestine trade in mineral substances is considered in the case of: • holders of mining concessions who trade internally in metallic mineral substances, or export metallic or non-metallic minerals from other concessions, without the required licence; or • mining producers who sell metallic mineral sub - stances to persons or entities not authorised to commercialise them.
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