The Ugly Australian

MINING IN ECUADOR -  THE PREPONDERANCE  OF AUSTRALIAN COMPANIES translated from "MINERÍA EN ECUADOR Y EL ACAPARAMIENTO DE EMPRESAS AUSTRALIANAS" where you can see the maps referred to below

 

This information is supported by public information sources of the following institutions: Mining Regulation and Control Agency (as of January 2, 2018) and Superintendence of Companies of Ecuador (as of February 27, 2018). And it has been verified with public information disseminated by mining companies with interests in Ecuador. It can be quoted and disseminated freely.

 

According to the mining registry that the Assembly of the Peoples of the South was able to access on January 2, 2018 through ARCOM regional Loja, a total of 2,109,604 hectares are in the process of being concessioned, which represents 8.5% of the national territory, and a total of 1'789.406 hectares have already been granted and registered, which represents 7.2% of the national territory (map 3). However, it is in the last year that these figures have had an exponential increase.

 

In fact, according to data processed by the collective Minka Urbana based on the mining registry records of January and August 2017 delivered by ARCOM matrix, in January 2017, 1'665,262 hectares were in process and amounted to 2'080,224 hectares in August ; while, at the same time, 791,056 hectares had been granted and registered and amounted to double the amount of 1'612,685 hectares in 8 months (maps 1 and 2). In other words, in 1 year the concessions in process increased by 27% while the concessions granted and registered by 126%.

We specified that these data could have a margin of error due to inconsistencies detected in the mining registry records of January 2018, however, it gives an account of the potential impact that the national territory currently faces: 15.7% of the national territory.

 

Map 1: Mining concessions January 2017

Yellow: Concessions in process

Blue: Concessions approved

Red: Areas of priority mining according to the Governments Mining development plan.

 

Map 2: Mining concessions August 2017

Pink: Concessions approved

Dark blue: Concessions in process

Light Blue: National Protected areas under SNAP

 

Map 3:Mining Concessions January 2018

Red: Approved

Blue: In process

Red inside Blue: Approved after 11/12/2017

 

The CEDHU additionally processed information from the mining registry up to January 2018 regarding Australian companies, with the following results. Five companies of Australian origin have been identified with a total of 284 concessions, which are in process and registered:

 

     Table no.1

 

 SolGold

733.978,00 ha

178

Cerro Quebrado

52.113,00 ha

17

Fortescue

156.105,05 ha

40

Goldmindex

54.985,00 ha

12

NewCrest

144.157,00 ha

37

  Total:                                                 1.141.338,05

 

                              284

 

 

 

 

 

 

 

Therefore, companies of Australian origin constitute the first nationality with the highest number of concessions in Ecuador (1'141,338.05 hectares). Of these, SOLGOLD PLC will have more than 700,000 hectares, followed by Fortescue and Newcrest and, to a lesser extent, Cerro Quebrado (linked to BHP Billiton) and Godmindex. In annexes you can see maps of the concessions and list of concessions registered and in process of registration of these companies.

 

SOLGOLD, a threat to the country.

With a disproportionate monopoly the company SOLGOLD PLC in January 2018 had interests in a total of 178 concessions (between registered and in process) equivalent to 733,978 hectares through five subsidiary companies CARNEGIE RIDGE RESOURCES S.A; CRUZ DEL SOL CSSA S.A .; EXPLORACIONES NOVOMINING S.A. (ENSA); GREEN ROCK RESOURCES GRR S.A. and VALLE RICO RESOURCES VRR S.A. This company is listed on the stock exchanges of Toronto and London. According to the information of the Administration of the company, SOLGOLD PLC has its legal domicile in England, although it recognized its main domicile as being in Brisbane, Australia. Its president is Jason Thomas Ward.

The company, on its web page, only presents information of the registered concessions (77 concessions), which are part of what they call "A new mining province",  which includes the Cascabel project in charge of ENSA already in advanced exploration and the rest of concessions within the project that they call "our pan-ecuadorian strategy" <http://www.solgold.com.au/ecuador-1/>

According to the superintendent of companies, Carnegie Ridge Resources S.A. it was incorporated in Ecuador on January 31, 2015 and on January 31, 2018 it increased its capital from $ 800 to $ 100,000. Their legal representative is Andrew Taunton. His attorneys in Ecuador are the lawyers César Zumárraga Ramírez, Juan Bernardo Tobar, Juan Fernando Larrea Savinovich and Andrés Paz and Miño Borja, all from the law firm TOBAR ZVS SPINGARIN.

Cruz del Sol CSSA S.A. It was established on August 4, 2015 and on January 31, 2018 it also made the same capital increase for $ 100,000. Green Rock Resources GRR S.A. it was incorporated on January 4, 2015 without registering capital increases so far. Valle Rico Resources VRR S.A. was established on March 30, 2015, it also increased its capital to 100,000

dollars on the same date. These three have the same legal representative and the same attorneys as Carnegie Ridge Resources S.A.

 

Explorations Novomining S.A. was established June 13, 2006 as Santa Bárbara Copper & Gold S.A. and on November 29, 2011 it changed its name to the current one and increased its capital from 800 to 1,409,932 dollars. It is represented by the same lawyers as the previous companies, and also includes Mr. Taunton as their legal representative.

 

Concessions- Ecuador Map

Key:

 Black Squares mark Capitals of Provinces

Pink dots indicate Regional deposits

Subsidiaries of The SOLGOLD group;

 

Brown square: Carnegie ridge resources S.A

Blue Square: Cruz del Sol CSSA S.A

Red square: Exploraciones Novomining S.A

Green square Green Rock Resources GRR S.A

Yellow square Valle Rico Resources VRR S.A

 

 

According to its latest financial report, SOLGOLD itself recognizes that: (Copied directly from the website http://bit.ly/2EWjQtx )

 

 “Total assets at 31 December 2017 were A$239,267,791 compared to A$166,713,608 at 30 June 2017 representing an increase of A$72,554,183 as a result of increased cash due to the private placement completed on 30 November 2017, the exercise of share options and the issue of shares to Newcrest Mining Ltd pursuant to top-up rights, offset by the continued exploration at the Company’s flagship Cascabel project and initial exploration of the newly granted concessions in Ecuador and payments of corporate administrative and overhead expenses.

Current assets increased by A$49,689,924 primarily as a result of the completion of the private placement (180,000,000 shares at £0.25) offset by funding the exploration programs at the Company’s flagship Cascabel project and the newly granted exploration concessions in Ecuador. “

 

From which it can be concluded that SOLGOLD has earned 72.5 million Australian dollars to date between the Casacabel project and its registered concessions and interests in Ecuador.

Other Australian companies

Regarding the other Australian TNCs, the following is known:

Ecuadorfortescue S.A. It was established on May 30, 2016 in Ecuador by the partners Carlos Moncayo Ottati and Andres Maximiliano Ycaza Palacios. On June 15, 2016, 50% of the company's shares were transferred to FMG Ecuador Tenements PTE LTD and FMG Ecuador Operations PTE LTD, both located in Singapore, and whose agent in Ecuador is Mario Alejandro Flor López. These two companies, in turn, are subsidiaries of the Australian Fortescue Metals Group FMG. On January 18, 2017 the capital increased from 1,000 to 13,500 dollars. Its legal representative in Ecuador is Andrés Ycaza Palacios and its general manager is Mario Alejandro Flor López  who is also partner of the law firm Flor & Hurtado which is where Ycaza Palacios currently works.

Newcrestecuador S.A. was established on March 22, 2017 by the agent Álvaro Rafael Ordóñez Cornejo, agent of Newcrest Internation PTY LTD (99%) and Newcrest Exploration Holdings PTY LTD (1%), both Australian subsidiaries of Newcrest Mining Limited with a capital of 20,000 dollars. Its General Manager is Joseph Barton Suchomel and its current representative is Mining & Co Representaciones S.A.

Goldmindex S.A. was established on October 26, 2006 under the name Minera Corex Sociedad Anónima,  and on March 4, 2008, it changed its name to the current one whilst in the process of dissolution in 2014. It was reactivated on December 28, 2017. On May 9, 2008 799 shares were transferred to the Panamanian company Monterra SA and 1 share to the Ecuadorian Terrasources Minerals SA , the latter transferred to Nicolás Enrique Frebres Cordero Gallardo in 2016. This Panamanian company is a subsidiary of Monterra Resources of Australia.

Cerro-Quebrado S.A. is a subsidiary of BHP Billiton. It was established on February 14, 2017 by the lawyer Roque Bernardo Bustamente Espinosa, representative of BHP Billiton Explorations Chile SPA, and Andrés Ycaza Bustamente Palaciones (the representative of EcuadorFortescue S.A.), both lawyers of Bustamante & Bustamente Abogados. Ycaza Palacios now works for Flor & Hurtado, linked to Fortescue and its shares were transferred on May 15, 2017 to Minera Spence S.A. From Chile. This company owns Río Algom Limited and Río Algom Exploration, Canadian subsidiaries of BHP Billiton.

      ******

( The next section starts like this, the 1st point is missing)

  1. The company Rio Algom Limited is an investment company, incorporated in accordance with the laws of Canada, with address at;

Faskens Mertineau Du Moulin, 333 Bay street, suite 2400 Bay Adelaide center, Box 20, Toronto, ON m5H2T6 Canada.

The shareholders of said company are BHP Billiton Company B.V (86.64483891%) and Billiton Holdings Limited (13.35516109%)

 

  1. The company BHP Billiton Company B.V. is a limited liability company, incorporated in accordance with the laws of the Netherlands, with its address being at;

Naritaweg 165, 1043 BW, Amsterdam, Netherlands.

The sole shareholder of said company is BHP Billiton Holdings Limited. (100%)

 

3.The company BHP Holdings Limited is a  Limited by Shares company,  established in accordance with the laws of the United Kingdom, located in;

Nova South, 160 Victoria street, London, SW1E 5LB, United Kingdom.

The shareholders of said company are BHP Billiton UK Holding Limited (49.88304644%), BHP Billiton UK Investment Limited (49.88304644%), and BHP Billiton Group Limited (0.23390712%)

 

  1. The company BHP Billiton UK Holdings Limited is an investment company established in accordance with the laws of The British Virgin Islands, located at;

Akara Building, 24 De Castro street, Wickhams Cay 1, Road town, Tortola, British Virgin Islands.

The sole shareholder of this company is BHP Billiton Group Limited (100%)

 

5 The company BHP Billiton UK Investment Limited is an investment company established in the British Virgin Islands,  located at;

Akara Building, 24 De Castro street, Wickhams Cay 1, Road town, Tortola, British Virgin Islands.

It is directed by Ian Duncan Chisholm, of British nationality. The only shareholder of this company is BHP Billiton Group Limited (100%).

 

  1. The company BHP Billiton Group Limited is a Limited by Shares company established in the UK, located at;

Nova South, 160 Victoria street, London, SW1E 5LB, United Kingdom. The sole shareholder of this company is BHP Billiton Plc.

 

      It is necessary to confirm if this company is English or Australian.

If you need more information you can contact me on francisco.hurtado@cedhu.org

Sent by; Francisco Hurtado Caicedo, attorney.

27 february 2018.

    *********

 

Annexes

National maps of Monopolisation by Australian companies

KEY: Green box, protected areas

          blue box, protective forests

Norte del Ecuador = Northern Ecuador

Sur del Ecuador = Southern Ecuador

 

List of concessions January 2018

KEY:

Concesíon = Concession

Empresa = Company

Estado = State

Área = Area

Inscrita = Approved

Tramite = in process

 

 

 

 

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