ECUADOR Law and Practice Contributed by: Roque Bernardo Bustamante and Claudia Bustamante, Flor Bustamante Pizarro & Hurtado
Mining Scale Mining concessions are divided into large-scale concessions, medium-sized mining and small- scale mining. Small-scale mining is considered to be that which, due to the characteristics and geologi - cal conditions of the deposits of metallic and non-metallic mineral substances and construc - tion materials, as well as their technical and eco - nomic parameters, makes their rational exploita - tion viable in a direct manner, without prejudice to the fact that exploration work precedes it, or that exploration and exploitation work is carried out simultaneously. Medium-sized mining is considered to be that which, due to the size of the deposits and depending on the type of metallic and non- metallic mineral substances in question, has been able to quantify reserves that allow the exploitation of those reserves over the process - ing volume established for the special regime for small-scale mining and up to the volume estab - lished by law. Large-scale mining is considered to be that which exceeds the maximum volumes estab - The exploration and exploitation of non-metal - lic mining must comply with the general rules applicable to mining concessions in the terms provided by the Mining 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 construction industry, with lished for medium-sized mining. Non-Metallic Mining Regime and Construction Materials
the exception of river beds, lakes, sea beaches and quarries that shall be governed by the limita - tions established by law. In the framework of Article 264 of the Constitu - tion, 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 Regu - lations that will establish the requirements, limitations and procedures to that effect. The exercise of competence shall be limited to the principles, rights and obligations contemplated in the municipal ordinances that are issued in this regard. The municipal governments shall not establish conditions 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 Energy and Mines, which in turn has agencies in different regions of the country. The granting of a mining concession is an admin - istrative act issued in a form and substance predetermined by the law and in a format pre- established 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 rec - ognises 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 concessions and the mining title does not con - template international arbitration.
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