ECUADOR Law and Practice Contributed by: Roque Bernardo Bustamante and Claudia Bustamante, Flor Bustamante Pizarro & Hurtado
• 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 substances to persons or entities not author - ised to commercialise them. 2. Impact of Environmental Protection and Community Relations on Mining Projects 2.1 Environmental Protection and Licensing of Mining Projects Before any activity on a mining concession can start, an environmental licence granted by the Ministry of Environment must be obtained. There are different types of licence depending on the activity contemplated. For initial explo - ration activities, the licence, called an environ - mental registry, can be obtained faster than for advanced exploration or exploitation, for which it can take up to two years to obtain the envi - ronmental licence. In addition, it is a requirement that an inde - pendent certificate from the water authority be obtained, evidencing that the proposed activities shall not have any impact on water sources. As a signatory of different international treaties, Ecuador 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 envi - ronmental impacts of each activity. Community rights and continuous constitutional actions against mining companies brought by political leaders are a serious concern for min -
ing 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 pro - ceed with the different mining stages, and this must be managed through the Unified Environ - mental Information System (SUIA). In order to obtain the environmental licence, it is necessary to request an Intersection Certificate which verifies the location of the concession within protected 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 Environmental Authority the Intersection Certificate from which the intersec - tion of the mining rights in relation to the National System of Protected Areas, Protected Forests and Vegetation, State Forest Heritage or other conservation areas declared by the National Environmental Authority is detached. If the mining right intersects with the National System of Protected Areas, as far as extractive activities are concerned, it will proceed accord - ing to the provisions of Article 407 of the Consti - tution of the Republic of Ecuador and the com - petent environmental regulations. In the event that the mining right intersects with Protective Forests and Vegetation or the State Forest Heritage, the mining title holder, prior to the start of the environmental licensing process, must apply to the National Forestry Directorate of the Ministry of the Environment for certifica - tion of environmental viability qualified with the report on the feasibility of the mining right. This certification will be issued by the National For - estry Director.
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