Several North American mining companies, including Canada's Iamgold, Aurelian Resources and Corriente Resources, met with the President of Ecuador, Rafael Correa, and other top officials on Thursday afternoon.
Ecuador's constitutional assembly a week ago approved a mining mandate that halts certain mining projects for as long as 180 days and revokes hundreds of concessions, while the country drafts a new law to regulate its mining industry.
The government, like a growing number of other mineral-rich nations, is taking steps to tighten its control of the mining industrcement manufacturing process flow chart , clinker grinding unit, cement milly, but Correa assured the eight companies that he supported "responsible" mining.
Shares in mining firms with assets in Ecuador have fallen steeply since the mandate was approved, but recovered on Friday morning, on the news of the meeting.
Correa had told the companies at Thursday's meeting, which also included Cornerstone Capital Resources, Dynasty Metals & Mining, Ecometals and International Minerals, “that the purpose of the mining mandate was to allow the government to get its house in order and new mining laws in place so that responsible mining can proceed,” Iamgold said on Friday morning.
“The President invited the mining companies to meet with the Ministry [of Mines and Petroleum] to help formulate the new mining laws, starting this coming Monday, April 28.”
As well as top officials from Correa's government, the meeting was also attended by the Canadian ambassador to Ecuador, Christian LaPointe.
Corriente and Iamgold both have advanced-stage projects in the Ecuador, and Aurelian Resources plans to develop the large Fruta del Norte gold/silver project.
Corriente is nearing the start of construction at its Mirador copper-gold operation in the country, and Iamgold is conducting a prefeasibility study on its Quimsacocha project in southern Ecuador.
The companies welcomed statements by Correa that "responsible mining will go ahead in Ecuador", and would continue to seek clarity on how they would be affected by the mandate, the firms said in seperate statements.
Shares in Aureliean Resources rose 29,57% on Friday, to C$4,25 a share. Iamgold was up 1,89%, at C$5,93 a share, and Corriente gained 19,2%, to C$3,85 a share.