CME TO THE COMMUNITY

July 2014

Content:

CME contribution to the Reform draft of the Mining Act

1

Socialization of the consul-tancy report prepared by Wood Mackenzie with CME officials

1

Meeting at the Chilean Embassy

2

CEICO-CME Meeting 2

Meeting at the Canadian Embassy

2

Support to ARCOM – Draft document for Resources and Reserves Regulations

3

Presence in the Media 3

Commission of nonmetallic mineral sector representa-tives of CME

3

Participation in the meeting “Dialogue Initiatives in the Ecuadorian Mining Sector”

4

Dear members and friends of Cámara de Minería del Ecuador: We are pleased to inform our members of the activities carried out between May and July 2014.

CME contribution to the Reform draft of the Mining Act

Socialization of the consultancy report prepared by Wood Mackenzie with CME officials

CME representatives along with mining advisers from the Ministry Coordinator of Strategic Sectors, MICSE per its acronym in Spanish, held work meetings in order to present their recommendations to the Reform draft of the Mining Act and its regulations. CME observations were discussed during previous meetings held with several commissions that raised their concerns and viable solutions. Likewise, at MICSE request, CME submitted its recommendations to improve the Environmental Regulations for Mining Activities, RAAM per its acronym in Spanish, which were presented by CME members who are experts in the subject and knowledgeable in the current regulations in force.

STAFF CME

Javier Cruz Plata President

Andrés Ycaza Vicepresident

Ma. Dolores Iturralde Executive Director

Lorena Álvarez General Coordinator

Javier Padilla Administrative Assistant

Anita Montoya Administrative Support

The Ecuadorian Government through MICSE hired Wood Mackenzie to prepare a study of the fiscal and regulatory regimen of the mining operation in Ecuador taking into account the current tax application compared to other countries in the region. This study as well as the tax proposals was socialized during a workshop organized by MICSE and conducted by Wood Mackenzie.

Workshop: Japanese experi-ences for the development of sustainable mining

4

Special membership – Min-ing providers

4

Página 2

CEICO-CME Meeting

Meeting at the Chilean Embassy

CME President, Mr. Javier Cruz Plata and CME Executive Director, Mrs. María Dolores Iturralde, held a work meeting with the recently appointed Ambassador of Chile, Mr. Gabriel Ascencio Mansilla. The current situation of the mining sector in Ecuador and its great potential were the

In order to talk about subjects of common interest for the parties, a meeting with the President of the Ecuadorian-Indian Chamber of Commerce, Mr. Agustín Ontaneda was held; both chambers discussed the possibility for India to invest in mining projects in Ecuador and agreed to work together. For that purpose, a Memorandum of Understanding is being prepared

Meeting at the Canadian Embassy

CME senior officials held a work meeting with the Canadian Ambassador, Mrs. Pamela O´Donnell and the Commercial Representative, Mr. Ricardo Valdez, whose country is very much interested in the progress of the mining activity in Ecuador. Regulatory matters and the status

main topics discussed. The Chilean Embassy offered to work jointly on mining development in Ecuador and suggested that a group of CME entrepreneurs visit a Chilean mine. The invitation is under analysis and will be coordinated by both parties.

to accomplish joint projects that favor mining development in Ecuador with Indian investments. During the meeting, CEICO expressed their interest in participating in the Latin American Summit for Good Practices in the Mining Sector – Ecuador 2014 that CME is organizing in Quito the next October.

of the private operation in the country were discussed. Canada is an important investor as regards to mining in Ecuador, and CME keeps an excellent relationship with its Embassy in our country.

Página 3

Support to ARCOM – Draft document for Resources and Reserves Regulations

ARCOM has hired an external consultant to prepare a draft of “Regulations to qualify the Resources and Mining Reserves”. CME was invited to participate in the socialization of such document. However, CME expressed that several issues mentioned therein should be improved

since they did not reflect the reality of the country. Geologists and lawyers representing CME delivered the observations to ARCOM during several meetings held at the Ministry of non-renewable natural resources, MRNNR per its acronym in Spanish.

Presence in the Media

Mr. Javier Cruz Plata and Mr. Andrés Ycaza, President and Vicepresident of CME, respectively, have been invited to different newspapers and television programs to explain the standpoint of our institution regarding current issues affecting the sector. Fiscal, environmental, labor and legal matters were presented from the mining perspective. The main objective was to communicate the general public about the benefits of a responsible and sustainable mining operation, clarifying misleading information that try to confuse citizenship.

Commission of nonmetallic mineral sector representatives of CME

In order to gather information about the needs of the nonmetallic mineral sector, and due to our interest to find viable solutions, CME convened a first work meeting with our members linked to this specific area, who are already working on a detailed agenda that includes

objectives and completion times. The first meeting held at CME facilities was a success and more future reunions are planned. The main purpose is to understand the needs and know the challenges of this important mining sector.

Página 4

Participation in the meeting “Dialogue Initiatives in the Ecuadorian Mining Sector”

CME attended to a work meeting within the framework of the “Dialogue Initiatives in the Ecuadorian Mining Sector” whose main objectives were:

Strengthen the Mining Dialogue Initiatives, IDM per its acronym in Spanish, with the active participation of different actors and sectors.

Socialize the incorporation minutes of IDM, its vision, mission and objectives to get the most actors and sectors involved subscribe the document.

Define a roadmap developed by IDM, to follow during the second semester of 2014.

Thanks to the invitation of ENAMI EP, CME officials attended a workshop organized by the Japanese International Cooperation Agency, JICA, where we were able to value the Japanese expertise in mining, the difficulties Japan had to overcome due to pollution problems and the remediation actions taken. This particularly illustrative workshop showed us their experience on waste management, safety and health measures in mining, prevention of accidents, etc.

Photographs taken from ENAMI EP web page

Workshop: Japanese experiences for the development of sustainable mining

Special membership – Mining providers

CME welcomes the following new corporations that have been registered in the Special Membership Plan so as to help promoting their goods and services within the mining industry. CME has offered all its support informing its members accordingly.