| Mining companies with stakes in Ecuador have been | | | | of whom were involved in community development |
| urgently meeting with government officials in an | | | | efforts—as well as its current activities, which |
| effort to demonstrate their good corporate | | | | include the provision of medical and dental services in |
| citizenship, environmental and social responsibility to | | | | the area. |
| preserve their interests in the face of a new | | | | Ironically and somewhat quizzically, the ecological |
| constitution and mining legislation to be drafted by | | | | group was able to push through the shutdown of |
| 136 newly elected members of a National Constituent | | | | social services, claiming that such activities influenced |
| Assembly. What transpires will shape the face of | | | | the local community to look favorably on the Junin |
| mining, foreign investment and development in | | | | project and Ascendant. |
| Ecuador, and very possibly elsewhere in South | | | | The Ecuadorian government as part of the March |
| America, for years to come. | | | | agreement stated that it would organize a |
| Ascendant Copper (TSX:ACX) is one junior miner | | | | commission of community leaders, government |
| intimately involved in the process. The company has | | | | officials and representatives for Ascendant to ensure |
| been working to explore and develop Junin, a | | | | the compliance of all parties. |
| world-class copper porphyry deposit, as well as | | | | A group of government officials visiting the Junin |
| Chaucha, a second similar deposit the Andes’ | | | | property and area in early August found that |
| western flank in northern Ecuador. | | | | Ascendant was operating a medical center and a |
| Ascendant is sitting on Junin, a world-class | | | | school bus for Intag's children. They asked the |
| copper-molybdenum-silver-gold porphyry prospect, as | | | | company to stop these social programs and |
| well as two others, the Chaucha and Telimbela | | | | Ascendant was compelled to agree based on the |
| prospects. “We are sitting on the second if not | | | | three-party agreement signed earlier in the year. |
| the largest copper/molybdenum property in the | | | | “We did it regardless of the fact the country has |
| world,” commented John Haigh, Ascendant’s | | | | no legal authority to control our social programs. The |
| Investor Relations manager. “Our Junín | | | | opposition was annoyed because our projects |
| property consists of 23,475 acres of property | | | | increase the community’s support for |
| containing billions of pounds of economic resource; in | | | | mining,” Francisco Veintimilla, the company’s |
| fact we are looking at a potential in excess of a | | | | Ecuador general manager, stated in a media release. |
| billion pounds of molybdenum and in excess of 20 | | | | The Government, Ascendant and Mining Going |
| billion pounds of copper.” | | | | Forward |
| While management remains optimistic in the | | | | Mining experts from Canada, Chile, Peru and Spain |
| longer-term, recent elections and upcoming debates | | | | were among some 350-plus participants on hand in |
| and controversy associated with drafting a new | | | | Quito Sept. 18 when Ecuador’s recently |
| constitution, as well as new mining laws and | | | | appointed Minister of Mines and Petroleum, Galo |
| regulations, is prompting management to shift their | | | | Chiriboga, led a forum that brought together |
| focus elsewhere in the shorter term. | | | | government, mining and community representatives |
| Mining & the Environment | | | | to present and debate the central issues regarding |
| Mining is inherently damaging to the environment yet | | | | the future of mining in the country. |
| practically every society in the world today could not | | | | Chiriboga stated his support for environmentally and |
| function or support itself, nor would they have grown | | | | socially responsible large-scale mining in a recent |
| or developed to the extent they have were it not | | | | interview. He also announced that the Ministry of |
| for a steady supply of key metals and minerals. | | | | Mines and Petroleum would be restructured so that it |
| Copper is one. | | | | could devise and enact improved national mining |
| In keeping with the times and technology, Ascendant | | | | policies in both the short and long-term that would |
| has made substantial efforts to demonstrate good | | | | involve drawing input from all stakeholders. |
| corporate citizenship. These are encapsulated in the | | | | Representatives from Cornerstone Capital Resources, |
| U.N. Global Compact, a program and internationally | | | | another Canadian junior mining company with projects |
| recognized set of standards regarding human and | | | | in Ecuador, were “favorably impressed and |
| labor rights, environmental sustainability and | | | | encouraged by this and other very positive |
| anti-corruption to which Ascendant ascribes and has | | | | signals,” the company’s manager of |
| been formally accepted. | | | | corporate communications, Roseanne Williams, wrote |
| More specifically with regard to Junin and its other | | | | in a recent update. |
| prospects in Ecuador, Ascendant has during the past | | | | All parties stand to gain if the Correa government |
| two years established social and environmental | | | | can successfully negotiate a mutually acceptable |
| programs within nearby Junin communities. | | | | agreement regarding Ascendant’s Junin property. |
| These include providing much needed medical and | | | | Doing so might also be a significant step forward for |
| dental facilities and personnel, working to improve the | | | | the Ministry of Mines and Petroleum’s efforts to |
| educational system-- including teacher training and | | | | forge an equitable and practical set of mining policies |
| scholarships-- providing training on farming techniques, | | | | and regulations going forward. If and when this |
| vaccinating cattle, supporting soccer camps, providing | | | | scenario pans out, expect Ascendant’s shares to |
| trash collection and disposal, maintaining and building | | | | make a strong surge to the upside. |
| roads, and developing nurseries with more than | | | | Ascendant’s management “estimates that a |
| 40,000 plants to support reforestation of areas | | | | lasting, mutually agreeable arrangement with the |
| deforested by slash-and-burn agricultural methods, | | | | Ecuadorian government can be reached in 30 |
| according to company information. | | | | months,” Investor Relations manager John Haigh |
| Moreover, it should be noted that all the above is in | | | | told Resourcex. “We believe that it will be at |
| addition to potentially substantial government | | | | least one more year before the Ecuadorian mining |
| revenues and foreign exchange earnings the | | | | law will be rewritten and will include a royalty to the |
| Ecuadorian government stands to garner should | | | | government of at least 3%, that they currently don't |
| Ascendant’s development plans move forward. | | | | have. That's fine with us.” |
| An Easy Target for Protestors | | | | In the interim, Ascendant has launched efforts to |
| The area around the Junin property has been a | | | | acquire three near-term copper producing properties |
| hotbed of legal and illegal protest. Ascendant’s | | | | in the western US. Negotiations are well under way |
| demonstration farm in the Intag area was illegally | | | | for two of the three, with an announcement |
| seized and the company has been unable to conduct | | | | expected on the third in about three months, |
| independent drilling to confirm and expand on | | | | according to Haigh. |
| historical exploration and assay results. | | | | This article is intended for information purposes only, |
| That looked set to change after March 20 when the | | | | and is not a recommendation to buy or sell the |
| company concluded agreements with the | | | | equities of any company mentioned herein. It is |
| government and Decoin aimed at restoring law and | | | | based on sources believed to be reliable, but no |
| order to the region, reducing tensions and respecting | | | | warranty as to accuracy is expressed or implied. The |
| the rights of all parties. | | | | opinions expressed in the article are those of the |
| One of the conditions was the return of the Intag | | | | author except where statements are attributed to |
| demonstration farm, which had been seized the | | | | individuals other than the author, in which case the |
| previous week. Based on Decoin’s demands, | | | | opinions are those of the individual to whom they are |
| Ascendant also reluctantly agreed to reduce its work | | | | attributed. |
| force substantially, from 159 to 48 people—most | | | | |