Ecuador to Recieve 52% from New Contract from Canadian Miner Kinross

The mining contract will be set up so that Ecuador recieves an income of 52% for the exploitaion of the Amazonian field. The amazonian field is projected to have reserves of 6.4 million ounces of gold. The 52% will be split up into income tax, Value added tax, profit sharing to workers, and royalties. 22% will go to income tax, 12% will go to Value added tax, 15% will go to profit sharing for workers and 5-8% will go to royalties. The royalties part of the 52% will depend on the price of gold at that time. For example royalties will be 5% if the price of gold is less than $1,200. The contract runs through 2030 and mining will be held at northern slope of Cordilla del Condor in the Amazonian province of Zamora Chinchipe which is the south east border of Peru. The indigenous people aren not as happy with the contract as Ecuador’s government is. They believe they have a say on whether or not a contract signed when the project would take place on their reserves. The President of the Confederation of Indigenous Nationalities of Ecuador, Humberto Cholango, is planning a march to Quito to demand a law requiring the consulting of the indigenous population before planning projects on their reserves.