QUITO (MarketWatch) -- Ecuador's minister of non-renewable natural resources, Wilson Pastor, said Wednesday that the contract to let Canadian gold-mining company Kinross Gold Corp. (KGC, K.T) mine the Fruta del Norte deposit should be signed later in December or early January.
Fruta del Norte is located in Zamora Chinchipe Province.
Kinross said Monday that it had reached a non-binding agreement in principle with Ecuador's government for the exploitation of Fruta del Norte.
Pastor said Wednesday at a press conference that a final agreement has been signed and the next step is to sign the respective contract. Ecuador would start large-scale mining production in 2014 with gold production coming from Fruta del Norte, according to Pastor.
Kinross is expected to invest $1.1 billion to build the mine and other production facilities.
Meanwhile, President Rafael Correa's administration is negotiating to sign mining contracts with Ecuacorriente, a company controlled by the China Railway Construction Corp. (601186.SH, 1186.HK) and the Tongling Nonferrous Metals Group Co. for the Mirador copper project, and with the local unit of International Minerals Corp. (IMZLF, IMZ.T) for its Rio Blanco project.
WHO KNOWS WAT THE PRICE OF GOLD WILL BE WHEN THEY FINALLY EXTRACT THE FIRST OUNCE?
Pastor said that royalties from the gold contracts will be between 5% and 8%, while royalties for copper will be between 6% and 8%, depending on gold and copper prices.
