Bill pushes for Mining and Energy reforms
The President of the Republic submitted to the National Assembly, as an urgent economic initiative, the Draft Organic Law for the Strengthening of the Strategic Mining and Energy Sectors. The proposal introduces relevant adjustments in procedural, environmental and operational matters, which could have a direct impact on concessionaires, investors and operators in the sector.
ECIJA Ecuador Energy and Natural Resources team, formed by Álvaro Ordóñez and Luis Vicente Bueno Montero, has prepared a briefing note analysing the main legal and regulatory scope of the project.
Among the most important aspects are the changes in the mining exploration procedures, including the automatic transition between sub-phases without requiring new authorisation, as long as the applicable technical and environmental parameters are met. This measure aims to reduce administrative time and provide greater continuity to projects.
The project also incorporates provisions on mining clusters and strategic security, promoting territorial planning with shared infrastructure and contemplating the possibility of declaring strategic zones with special protection measures.
In environmental matters, it is proposed to replace the concept of "environmental licence" with that of "environmental authorisation", harmonising sectoral regulations with the general environmental regime. Likewise, the mining royalties scheme is ratified, between 3% and 8% of sales, with adjustments in its territorial distribution.
In addition, modifications are introduced in the artisanal mining regime, establishing surface area limits and non-extendable terms, as well as the obligation to migrate to the small mining regime once the corresponding permit has been concluded.
Given its urgent economic nature, the National Assembly will have to decide within a maximum period of 30 days. In this context, it is key to assess the possible regulatory and operational impacts in advance.
ECIJA Ecuador invites you to review the full briefing note prepared by its specialised team, where a detailed analysis of this legislative proposal and its implications for the sector is developed.
