Salazar Comments on New Ecuadorian Mining Inspection Fee

Core Viewpoint - The implementation of a new mining inspection fee by the Ecuadorian Control and Regulation Agency (ARCOM) aims to enhance oversight and combat illegal mining, but it poses a significant financial burden on mining companies, potentially harming the Ecuadorian mining industry and its investment reputation [1][3][5]. Company Summary - Salazar Resources Limited is required to pay approximately US$332,000 for its current concessions, with US$47,000 due in June 2025 and US$285,000 due in January 2026. This fee is about ten times higher than the company's annual concession fees in Ecuador [2]. - The company is actively collaborating with various chambers and associations in the Ecuadorian mining sector to communicate the detrimental impact of the new fee on the industry and the country's investment appeal [3]. - Salazar Resources has reached out to the Ecuadorian Government and is in discussions with the Mining Chamber of Ecuador to seek the rescindment of the regulation, while also exploring further actions [4]. Industry Summary - The new fee structure is viewed as unsustainable and is expected to hinder exploration activities, which are crucial for the mining industry's success. The CEO of Salazar Resources expressed concerns that this ruling could damage Ecuador's international reputation as a mining destination [5]. - The company emphasizes the importance of exploration in discovering new mineral deposits and believes that the fee will deter most exploration efforts in Ecuador [5].