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Energy
moting the country’s mining policy, especially with
regard to the administration, regulation, control and
management of development of the mining industry,
giving priority to sustainable development and pro-
moting social participation.
DESCRIPTION OF THE INSTITUTIONS DEPEN-
DENT ON THE VICEMINISTRY
The Mining Law which was published in Official Ga-
zette No. 517 on January 29, 2009 states that the
ministerial structure is comprised of the following
institutions:
• MINING REGULATION AND CONTROL AGENCY
(ARCOM)is the technical and administrative body in
charge of the implementation of State power moni-
toring, audit, intervention and control phases of the
mining industry that form the National Mining Com-
pany, as well as joint ventures in mining, private,
small-scale, artisanal and subsistence mining, in ac-
cordance with all corresponding regulations.
ARCOM is a public institution, which is attached to
other ministries and is authorised to supervise and
take administrative actions that contribute to the ra-
tional use of mining and technical resources.
• NATIONAL INSTITUTE OF METALLURGY, MIN-
ING AND GEOLOGY SURVEY (INIGEMM) is the
public institution responsible for conducting re-
search, technological development and innovation in
Geology, Mining and Metallurgy. The INIGEMM has
a legal personality, as well as administrative, techni-
cal, economic, financial and equity capital. It is de-
pendent on ministries and has the power to create,
organize, focus and manage geological information
throughout the national territory, to promote sustain-
able development and sustainable management of
mineral resources and prevent the occurrence of
geological hazards and those caused by man, in ac-
cordance with the land law.
• NATIONAL MINING COMPANY (Enami-EP)is a cor-
poration under public law with legal personality, with its
own equity, endowed with budgetary, financial, eco-
nomic and administrative autonomy. It is responsible for
the management of mining activities and for the sus-
tainable use of natural resources. ENAMI is subject to
specific regulations and control policies established by
the Public Enterprises Act and must act with high stan-
dards of quality, economic, social, environmental and
business criteria. The National Mining Company may
constitute mixed economy companies, associations,
temporary associations, strategic alliances and any
other act or contract allowed by national laws in order to
fulfil its purpose and achieve national goals.
CURRENT SITUATION
Ecuador is relatively new to the mining industry.
Neighbouring countries such as Colombia, Peru
and Chile have a more developed mining sectorthan
Ecuador. However, nonetheless, there are many
opportunities awaiting investors in the Ecuadorian
market. The south in particular has a lot of potential
as there is much untouched land that could later be
exploited for energy purposes.
To reverse the trend that marked the development of
the sector over the past three decades, through the
so-called Constituent No. 6, the state made the deci-
sion to regulate the mining concessions that were in
force in the country. As well as this, it was decided
that the government would adapt the development of
the mining sector to the new regulations and provi-
sions of the Constitution.
In Ecuador, 16 minerals are processed.. Therefore,
it is necessary to undertake an intensive process of
geological mining research at the national level to
enhance the implementation of mining projects to be
developed by both the INIGEMM, ENAMI-EP, as well
as by private enterprise.
Mining is one of the strategic high-potential indus-
tries of the Ecuadorian economy, associated with a
significant multiplier effect that generates value to
the economy, creates employment as well as income
streams from investments and purchases of domes-
tic inputs. It generates foreign exchange, stimulates
technical and technological innovation, infrastructure
development, creates resources for investment in
health, education and social development.
Thousands of families in the country directly depend
on this activity and many more will benefit indirectly
from income streams that it generates.
Therefore, the core strategic priority of the min-
ing sector in Ecuador is to develop its own mining
projects, benefit from the development of existing
ones, generate taxes, royalties and fair distribution
of benefits between the shareholders, learning from
international mining practices.
Model Change: from extractive model to socially and
environmentally responsible model
Ecuador mining of the 21 century is at its transition point.
Despite the old mining tradition of the country, particu-
larly in small-scale activities in metal mining, non-metallic
building materials, the mining sector remained under the
shadow of the oil industry as a marginal sector.