DECOIN

ASCENDANT COPPER AND MAGDALENA 1

2011-05-05T11:00:00.002-05:00

There are rumors going around that Magdalena 1, Ascendant Copper Corporation´s old mining concession may be going up for sale. In the past, we have highlighted the reasons why it would be ridiculous for any mining company to get involved with this concession, or company. In order not to bore with repetition, let me resume:

1) Magdalena 1 legally belongs to Ecuador. According to the new mining law, approved in 2009, all concessions where the state invested public money in geological investigation, have to revert back to the state. This happened with the Chaucha concession,as well as Magdalena 1´s sister concessions, which made up the JUNIN project: Golden 1 and Golden 2. Magdalnea 1 was part of the three-some concessions where the government of Ecuador invested in exploration in the 1990´s alongside Bishimetals and the Japanese International Cooperation Agency (JICA).

2) And i realize this should be number one: This is an area where communities, local governments and NGO have teamed up to defeat two transnational mining projects. Mitsubishi and company in the 1990´s, and Copper Mesa and company in 2008. Note, the following is a understatement: Any mining company wishing to restart a mining project here is bound to run into real difficulties. Remember, so far, communities 2- transnational corporations 0.

3) If the above is not enough,, there is zero copper in Magdalena 1. The POSSIBLE copper reserves (never proven) the japanese believe is in this area, were found within the Golden 1 and Golden 2 concessions- much higher in elevation and in a different region than the area encompassed by Magdalena 1.

4) This whole area is very rich in pre-Colombian archeological sites (Yumbo People). Ecuador has very strict laws in place to protect the nation´s archeological patrimony.

5) Ascendant and Copper Mesa are no more. Copper Mesa, the real owner of the EX concessions were kicked out of the Toronto Stock Exchange in 2010.

For more details, please see the document: 19 reasons whey Nortec should stay out of the Intag Region of Ecuador http://upsidedownworld.org/main/ecuador-archives-49/1828--nineteen-reasons-why-nortec-ventures-should-stay-out-of-the-intag-region-of-ecuador-

DECOIN's Assembly

2010-01-25T19:43:00.001-05:00

SORRY, for some reason I cannot upload the photos- I'll keep trying,- till then, try this address: http://decoin2.blogspot.com/2010/01/decoins-assembly.html

DECOIN's gathering this past friday (22nd Jan) at the Piscinas de Nangulví. For the report, see below. (versión en español le sigue al inglés)

On friday, January 22, at the Pisicinas de Nangulví, DECOIN held an assembly to celebrate 15 years of work and to elect a new board.

The Assembly was an extraordinary event. In all 65 friends from about 22 communities (maybe 25) and several organizations came (we had invited 60 each with a letter). It was a time to see the main people who have been working so hard to defeat the mining project. A time to remember fifteen years! of hard work, hardship, joy, defeats, and triumphs.

People got up, about a dozen or more, and publicly thanked DECOIN, and each and everyone in the room for the work done. It was very moving, even surprising (pleasantly so). Robin's testimony brought tears to many eyes. One of the things he pointed out was that it was because of DECOIN that other organizations were able to live and grow. Others pointed out that very few organizations live to be 15. Juan Ibarra: "if it hadn't been from DECOIN we would have been forced off our homes and communities". Others recalled how they became involved in the struggle. Mareano: "What we have learned is that anyone who fights to defends the environment is DECOIN". The young (and very brave) woman president from Rio Verde stood up and told us of her admiration for what we had accomplished and the level of environmental awareness in this part of Intag, and begged us to go to her area and work in environmental education so her people could be as aware. She also asked for help in conserving the forests in her area which are being rapidly decimated, and to help her create watershed and community forests reserves.

Marcia scolded us for not inviting everyone involved in the struggle (I pointed out that it would have been not less than 400 friends!, completely beyond our budget) However, we hope to, with everyone's help, to hold a large party celebrating 13 years of the Mitsubishi bonfire and an Intag free of mining within the next few months. You are cordially invited!!

For me, and as I told everyone, I felt joy at seeing so many familiar faces I've seen throughout the years all in one place. What a high! I told them that when people ask me how I can stand the day-to-day and year-after-year stress related to this work, I said, "easy, each and every one of you inspires me". They really are inspiration.

Geovanni Paz gave a wonderful talk. He recalled the first DECOIN days, remembering the hardships, the disbelief in people about our mission, the threats, the commitment of the first members. He expressed genuine awe at the transformation manifested in the people in the room (he was in Cuba for many years starting in 1997); in their ability to publicly speak, their commitment to protecting the environment and defend their rights; their environmental awareness; their eloquence! It really blew him away. He was very motivated. One of the things we committed to right then and there was to undertake a series of leadership workshops with him, starting in March (by radio at first).

Silvia went more a little bit more into detail of our work during the past 15 years with a powerpoint presentation. We also had a time line up on the wall for even more details. But even as she was enumerating all the stuff and mischief we've been up to, I, jose cueva and Im sure others, remembered things that we had forgotten about. Really, it was impressive the number of things we've accomplished as DECOIN (i hope to soon have an summary up on our site).

Next: a couple of musical breaks- one by Ceneida, Mareano's and Piedad's teenage daughter from Barcelona who dedicated a special song for DECOIN. What a voice!!! Then, Alirio with his fantastic anti-mining songs (big hit, several encores), and Willy Coronel with a hearth-wrenching Atahualpa Yupanqui song.

After the music, people shared ideas of where DECOIN should go in the next couple of years: The most mentioned: more community reserves (and expand current ones)., followed by more reforestation, much more environmental education with kids but also adults (more work to prevent forest fires); more work to avoid deforestation; promote tourism more; keep supporting the transportation of high-school students; importance of supporting the solidarity store in Otavalo to sell cabuya and other products (Casa de Intag); reduction of, and training in pesticide use; leadership training; more productive alternative projects; work more in solid waste management (prevention of contamination); special request for Decoin to get more involved in the Manduriacos area; need to work more with the local media; more work on the political sphere(!). There were a few more that I can't recall right now, but you get the idea. All of these ideas came from the community representatives. Most things we do anyway, others we've been wanting to do for a long time. About time then!

We finished by electing DECOIN's new board members: Neither Silvia or I could get out of being reelected (by unanimous vote),,, but we added Sonja Dillmann as Secretary/Treasurer, and Armando Almeida as Vice President. Then we all elected two people from each Parroquia (4 from Garcia Moreno) to make up the expanded Board (called support groups). Including Geovanni Paz, who was chosen as Permanent Consultant, the expanded board is now composed of 21 members. I'm guessing that most of the time the central board will meet, but hope the expanded board can meet not less than 4-5 times per year. I'm also hoping that in the future the support groups will play an active role in Decoin's work.

Then, lunch served with trout from the San Antonio community (one of the projects we supported)and Naranjilla Chicha.
,
A very, very special event.

Oh, one more thing. It could hardly be clearer that THERE WILL BE NO MINING IN INTAG. Not with the kind of folks that accompanied us at the Assembly. Their energy will be needed if the government goes ahead with the plans of exploring in Junin via the newly created state-owned mining company. For now it will be difficult because the company has not money, but that can quickly change. MORE ON THIS IN MY NEXT BLOG

ASAMBLEA DE DECOIN AFIANZA COMPROMISOS DE INTEGRANTES CON LA CONSERVACION DE LOS RECURSOS NATURALES DE INTAG

LA DECOIN MÁS FORTALECIDA QUE NUNCA

En el complejo turístico de Nangulví, y con la participación de 65 personas de aproximadamente 23 comunidades y varias organizaciones, este viernes, 22 de enero la DECOIN llevó a cabo su asamblea para, no solo renovar la directiva, sino para celebrar 15 años de vida de la organización ambientalista.

Silvia Quilumbango, presidenta de la DECOIN, se encargó de dar la bienvenida a los y las participantes de las comunidades, algunos de los cuales iniciaron su viaje temprano en la madrugada. Christian Paz moderó el evento, el cual continuó con un recuento por Silvia Quilumbango de algunas de las actividades y logros realizados por la DECOIN. Pero el tiempo fue demasiado corto para enumerar las cientos de acciones que la organización ha realizado a favor de la conservación de los recursos naturales de la zona (ver a continuación).

La asamblea estuvo contagiada de emoción y alegría. Muchos de los asistentes agradecieron el trabajo de DECOIN a través de esta última década y media. Una buena parte de las intervenciones dieron fe de la importancia del trabajo de concienciación, educación, y apoyo a la creación de otras organizaciones. Otros le reclamaron a la organización por no haber invitado a los cientos de otros "amigos de la DECOIN" quienes formaron parte integral de la lucha contra la minería. Carlos Zorrilla, directivo de la DECOIN, respondió a este justo reclamo diciendo que hubiera sido imposible invitar a 400 o 500 amigos para esta asamblea, pero que con la ayuda de las comunidades y organizaciones, próximamente se realizará una gran fiesta para celebrar la definitiva salida de las empresas de Intag.

Posteriormente los y las asambleístas eligieron a la nueva directiva. Carlos y Silvia fueron eligieron de nuevo como Director Ejecutivo y Presidenta por unanimidad. Sonja Dillman fue electa Secretaria/Tesorera, y Armando Almeida es el nuevo Vicepresidente de la DECOIN. Además, se procedió a elegir a dos representantes de cada Parroquia para conformar grupos de apoyo (ver más abajo)

El Padre Geovanni Paz, quien viajó expresamente desde Otavalo para apoyar la asamblea, fue electo como Asesor Vitalicio.

Después de la elección se pidió a los asambleístas que orienten el trabajo de la DECOIN para los dos próximos años. Todos estuvieron de acuerdo que era indispensable trabajar en las escuelas y colegios en educación ambiental. Muchos expresaron gran preocupación por los incendios agrícolas que azotan la zona y solicitaron que la DECOIN destine más recursos para frenar este flagelo. Otra área de trabajo apoyado por todos fue la expansión y creación de nuevas reservas hídricas comunitarias. En este tema, las presidentas de las comunidades de Río Verde y Cielo Verde expresamente solicitaron a la DECOIN que trabaje más en la zona de los Manduriacos para frenar la terrible deforestación que esta decimando los bosques que protegen sus ríos, a la vez solicitando una mano para crear bosques comunitarios en sus recintos. Los asambleístas también pidieron apoyo para frenar la contaminación, y mayor involucramiento en el manejo de desechos sólidos.

El Padre Geonvanni Paz uno de los fundadores de la DECOIN expresó su admiración por la transformación de los inteños y por la calidad humana de las personas presentes. Recontó su experiencia de los primeros días de la DECOIN, y motivó a los asambleístas a que sigan en la lucha por defender sus derechos, y señaló la importancia de seguir fortaleciendo a las organizaciones. Leyó parte de la carta ecológica del Papa, en la cual llama a tomar conciencia del desastre ambiental creado por el hombre, y la obligación de cuidar la creación. Al final, anunció que en el mes de marzo iniciará un programa de capacitación de líderes que él mismo liderará a través de la Radio Intag (inscripciones en la DECOIN, el Consorcio Toisán o la Radio Intag).

Durante el evento hubo varios números musicales a cargo de la Srta Guachagmira, quien cantó una canción para la DECOIN, acompañada en la guitarra de Luis Burbano, de la comunidad de Cerro Pelado. Después los participantes se motivados con las canciones ecológicas de Alirio Ramírez, quien contó un poco del origen de algunas de sus canciones. Willy Coronel, de Radio Intag, llamó a tomar más conciencia de la importancia de a lucha contra la minería con una hermosa canción de Atahualpa Yupanqui.
El evento cerró con un buen almuerzo acompañado por chicha y truchas provenientes de San Antonio de Cuellaje, unos de los proyectos apoyado por DECOIN.

Sin duda alguna, después de la asamblea, la DECOIN queda más fortalecida que nunca.

Parte de la lista de los integrantes de los grupos de apoyo de la Decoin

García Moreno zona alta: Marcia Ramírez, Nelly Haro y Mariano Guachagmira

Zona baja: Carmen Proaño y Piedad Mora

Peñaherrera: Pedro Bolaños y Oswaldo Armendariz

Plaza Gutiérrez: Roberto Castro y María Vaca

Apuela: Enma Garzón y Jaime Torres

Vacas Galindo: Isabel Anangonó y Ramiro García

Cuellaje: Cristian Ayala
Posted by: czorrilla / 6:02 PM

DECOIN's Assembly: TEST

2010-01-25T19:39:00.004-05:00

DECOIN's gathering this past friday (22nd Jan) at the Piscinas de Nangulví. For the report, see below. (versión en español le sigue al inglés)

On friday, January 22, at the Pisicinas de Nangulví, DECOIN held an assembly to celebrate 15 years of work and to elect a new board.

The Assembly was an extraordinary event. In all 65 friends from about 22 communities (maybe 25) and several organizations came (we had invited 60 each with a letter). It was a time to see the main people who have been working so hard to defeat the mining project. A time to remember fifteen years! of hard work, hardship, joy, defeats, and triumphs.

People got up, about a dozen or more, and publicly thanked DECOIN, and each and everyone in the room for the work done. It was very moving, even surprising (pleasantly so). Robin's testimony brought tears to many eyes. One of the things he pointed out was that it was because of DECOIN that other organizations were able to live and grow. Others pointed out that very few organizations live to be 15. Juan Ibarra: "if it hadn't been from DECOIN we would have been forced off our homes and communities". Others recalled how they became involved in the struggle. Mareano: "What we have learned is that anyone who fights to defends the environment is DECOIN". The young (and very brave) woman president from Rio Verde stood up and told us of her admiration for what we had accomplished and the level of environmental awareness in this part of Intag, and begged us to go to her area and work in environmental education so her people could be as aware. She also asked for help in conserving the forests in her area which are being rapidly decimated, and to help her create watershed and community forests reserves.

Marcia scolded us for not inviting everyone involved in the struggle (I pointed out that it would have been not less than 400 friends!, completely beyond our budget) However, we hope to, with everyone's help, to hold a large party celebrating 13 years of the Mitsubishi bonfire and an Intag free of mining within the next few months. You are cordially invited!!

For me, and as I told everyone, I felt joy at seeing so many familiar faces I've seen throughout the years all in one place. What a high! I told them that when people ask me how I can stand the day-to-day and year-after-year stress related to this work, I said, "easy, each and every one of you inspires me". They really are inspiration.

Geovanni Paz gave a wonderful talk. He recalled the first DECOIN days, remembering the hardships, the disbelief in people about our mission, the threats, the commitment of the first members. He expressed genuine awe at the transformation manifested in the people in the room (he was in Cuba for many years starting in 1997); in their ability to publicly speak, their commitment to protecting the environment and defend their rights; their environmental awareness; their eloquence! It really blew him away. He was very motivated. One of the things we committed to right then and there was to undertake a series of leadership workshops with him, starting in March (by radio at first).

Silvia went more a little bit more into detail of our work during the past 15 years with a powerpoint presentation. We also had a time line up on the wall for even more details. But even as she was enumerating all the stuff and mischief we've been up to, I, jose cueva and Im sure others, remembered things that we had forgotten about. Really, it was impressive the number of things we've accomplished as DECOIN (i hope to soon have an summary up on our site).

Next: a couple of musical breaks- one by Ceneida, Mareano's and Piedad's teenage daughter from Barcelona who dedicated a special song for DECOIN. What a voice!!! Then, Alirio with his fantastic anti-mining songs (big hit, several encores), and Willy Coronel with a hearth-wrenching Atahualpa Yupanqui song.

After the music, people shared ideas of where DECOIN should go in the next couple of years: The most mentioned: more community reserves (and expand current ones)., followed by more reforestation, much more environmental education with kids but also adults (more work to prevent forest fires); more work to avoid deforestation; promote tourism more; keep supporting the transportation of high-school students; importance of supporting the solidarity store in Otavalo to sell cabuya and other products (Casa de Intag); reduction of, and training in pesticide use; leadership training; more productive alternative projects; work more in solid waste management (prevention of contamination); special request for Decoin to get more involved in the Manduriacos area; need to work more with the local media; more work on the political sphere(!). There were a few more that I can't recall right now, but you get the idea. All of these ideas came from the community representatives. Most things we do anyway, others we've been wanting to do for a long time. About time then!

We finished by electing DECOIN's new board members: Neither Silvia or I could get out of being reelected (by unanimous vote),,, but we added Sonja Dillmann as Secretary/Treasurer, and Armando Almeida as Vice President. Then we all elected two people from each Parroquia (4 from Garcia Moreno) to make up the expanded Board (called support groups). Including Geovanni Paz, who was chosen as Permanent Consultant, the expanded board is now composed of 21 members. I'm guessing that most of the time the central board will meet, but hope the expanded board can meet not less than 4-5 times per year. I'm also hoping that in the future the support groups will play an active role in Decoin's work.

Then, lunch served with trout from the San Antonio community (one of the projects we supported)and Naranjilla Chicha.
,
A very, very special event.

Oh, one more thing. It could hardly be clearer that THERE WILL BE NO MINING IN INTAG. Not with the kind of folks that accompanied us at the Assembly. Their energy will be needed if the government goes ahead with the plans of exploring in Junin via the newly created state-owned mining company. For now it will be difficult because the company has not money, but that can quickly change. MORE ON THIS IN MY NEXT BLOG

ASAMBLEA DE DECOIN AFIANZA COMPROMISOS DE INTEGRANTES CON LA CONSERVACION DE LOS RECURSOS NATURALES DE INTAG

LA DECOIN MÁS FORTALECIDA QUE NUNCA

En el complejo turístico de Nangulví, y con la participación de 65 personas de aproximadamente 23 comunidades y varias organizaciones, este viernes, 22 de enero la DECOIN llevó a cabo su asamblea para, no solo renovar la directiva, sino para celebrar 15 años de vida de la organización ambientalista.

Silvia Quilumbango, presidenta de la DECOIN, se encargó de dar la bienvenida a los y las participantes de las comunidades, algunos de los cuales iniciaron su viaje temprano en la madrugada. Christian Paz moderó el evento, el cual continuó con un recuento por Silvia Quilumbango de algunas de las actividades y logros realizados por la DECOIN. Pero el tiempo fue demasiado corto para enumerar las cientos de acciones que la organización ha realizado a favor de la conservación de los recursos naturales de la zona (ver a continuación).

La asamblea estuvo contagiada de emoción y alegría. Muchos de los asistentes agradecieron el trabajo de DECOIN a través de esta última década y media. Una buena parte de las intervenciones dieron fe de la importancia del trabajo de concienciación, educación, y apoyo a la creación de otras organizaciones. Otros le reclamaron a la organización por no haber invitado a los cientos de otros "amigos de la DECOIN" quienes formaron parte integral de la lucha contra la minería. Carlos Zorrilla, directivo de la DECOIN, respondió a este justo reclamo diciendo que hubiera sido imposible invitar a 400 o 500 amigos para esta asamblea, pero que con la ayuda de las comunidades y organizaciones, próximamente se realizará una gran fiesta para celebrar la definitiva salida de las empresas de Intag.

Posteriormente los y las asambleístas eligieron a la nueva directiva. Carlos y Silvia fueron eligieron de nuevo como Director Ejecutivo y Presidenta por unanimidad. Sonja Dillman fue electa Secretaria/Tesorera, y Armando Almeida es el nuevo Vicepresidente de la DECOIN. Además, se procedió a elegir a dos representantes de cada Parroquia para conformar grupos de apoyo (ver más abajo)

El Padre Geovanni Paz, quien viajó expresamente desde Otavalo para apoyar la asamblea, fue electo como Asesor Vitalicio.

Después de la elección se pidió a los asambleístas que orienten el trabajo de la DECOIN para los dos próximos años. Todos estuvieron de acuerdo que era indispensable trabajar en las escuelas y colegios en educación ambiental. Muchos expresaron gran preocupación por los incendios agrícolas que azotan la zona y solicitaron que la DECOIN destine más recursos para frenar este flagelo. Otra área de trabajo apoyado por todos fue la expansión y creación de nuevas reservas hídricas comunitarias. En este tema, las presidentas de las comunidades de Río Verde y Cielo Verde expresamente solicitaron a la DECOIN que trabaje más en la zona de los Manduriacos para frenar la terrible deforestación que esta decimando los bosques que protegen sus ríos, a la vez solicitando una mano para crear bosques comunitarios en sus recintos. Los asambleístas también pidieron apoyo para frenar la contaminación, y mayor involucramiento en el manejo de desechos sólidos.

El Padre Geonvanni Paz uno de los fundadores de la DECOIN expresó su admiración por la transformación de los inteños y por la calidad humana de las personas presentes. Recontó su experiencia de los primeros días de la DECOIN, y motivó a los asambleístas a que sigan en la lucha por defender sus derechos, y señaló la importancia de seguir fortaleciendo a las organizaciones. Leyó parte de la carta ecológica del Papa, en la cual llama a tomar conciencia del desastre ambiental creado por el hombre, y la obligación de cuidar la creación. Al final, anunció que en el mes de marzo iniciará un programa de capacitación de líderes que él mismo liderará a través de la Radio Intag (inscripciones en la DECOIN, el Consorcio Toisán o la Radio Intag).

Durante el evento hubo varios números musicales a cargo de la Srta Guachagmira, quien cantó una canción para la DECOIN, acompañada en la guitarra de Luis Burbano, de la comunidad de Cerro Pelado. Después los participantes se motivados con las canciones ecológicas de Alirio Ramírez, quien contó un poco del origen de algunas de sus canciones. Willy Coronel, de Radio Intag, llamó a tomar más conciencia de la importancia de a lucha contra la minería con una hermosa canción de Atahualpa Yupanqui.
El evento cerró con un buen almuerzo acompañado por chicha y truchas provenientes de San Antonio de Cuellaje, unos de los proyectos apoyado por DECOIN.

Sin duda alguna, después de la asamblea, la DECOIN queda más fortalecida que nunca.

Parte de la lista de los integrantes de los grupos de apoyo de la Decoin

García Moreno zona alta: Marcia Ramírez, Nelly Haro y Mariano Guachagmira

Zona baja: Carmen Proaño y Piedad Mora

Peñaherrera: Pedro Bolaños y Oswaldo Armendariz

Plaza Gutiérrez: Roberto Castro y María Vaca

Apuela: Enma Garzón y Jaime Torres

Vacas Galindo: Isabel Anangonó y Ramiro García

Cuellaje: Cristian Ayala
Posted by: czorrilla / 6:02 PM

DECOIN's Assembly:

2010-01-25T18:02:00.003-05:00

As promised here are a few shots of DECOIN's gathering this past friday (22nd Jan) at the Piscinas de Nangulví. For the report, see below. (versión en español le sigue al inglés)

On friday, January 22, at the Pisicinas de Nangulví, DECOIN held an assembly to celebrate 15 years of work and to elect a new board.

The Assembly was an extraordinary event. In all 65 friends from about 22 communities (maybe 25) and several organizations came (we had invited 60 each with a letter). It was a time to see the main people who have been working so hard to defeat the mining project. A time to remember fifteen years! of hard work, hardship, joy, defeats, and triumphs.

People got up, about a dozen or more, and publicly thanked DECOIN, and each and everyone in the room for the work done. It was very moving, even surprising (pleasantly so). Robin's testimony brought tears to many eyes. One of the things he pointed out was that it was because of DECOIN that other organizations were able to live and grow. Others pointed out that very few organizations live to be 15. Juan Ibarra: "if it hadn't been from DECOIN we would have been forced off our homes and communities". Others recalled how they became involved in the struggle. Mareano: "What we have learned is that anyone who fights to defends the environment is DECOIN". The young (and very brave) woman president from Rio Verde stood up and told us of her admiration for what we had accomplished and the level of environmental awareness in this part of Intag, and begged us to go to her area and work in environmental education so her people could be as aware. She also asked for help in conserving the forests in her area which are being rapidly decimated, and to help her create watershed and community forests reserves.

Marcia scolded us for not inviting everyone involved in the struggle (I pointed out that it would have been not less than 400 friends!, completely beyond our budget) However, we hope to, with everyone's help, to hold a large party celebrating 13 years of the Mitsubishi bonfire and an Intag free of mining within the next few months. You are cordially invited!!

For me, and as I told everyone, I felt joy at seeing so many familiar faces I've seen throughout the years all in one place. What a high! I told them that when people ask me how I can stand the day-to-day and year-after-year stress related to this work, I said, "easy, each and every one of you inspires me". They really are inspiration.

Geovanni Paz gave a wonderful talk. He recalled the first DECOIN days, remembering the hardships, the disbelief in people about our mission, the threats, the commitment of the first members. He expressed genuine awe at the transformation manifested in the people in the room (he was in Cuba for many years starting in 1997); in their ability to publicly speak, their commitment to protecting the environment and defend their rights; their environmental awareness; their eloquence! It really blew him away. He was very motivated. One of the things we committed to right then and there was to undertake a series of leadership workshops with him, starting in March (by radio at first).

Silvia went more a little bit more into detail of our work during the past 15 years with a powerpoint presentation. We also had a time line up on the wall for even more details. But even as she was enumerating all the stuff and mischief we've been up to, I, jose cueva and Im sure others, remembered things that we had forgotten about. Really, it was impressive the number of things we've accomplished as DECOIN (i hope to soon have an summary up on our site).

Next: a couple of musical breaks- one by Ceneida, Mareano's and Piedad's teenage daughter from Barcelona who dedicated a special song for DECOIN. What a voice!!! Then, Alirio with his fantastic anti-mining songs (big hit, several encores), and Willy Coronel with a hearth-wrenching Atahualpa Yupanqui song.

After the music, people shared ideas of where DECOIN should go in the next couple of years: The most mentioned: more community reserves (and expand current ones)., followed by more reforestation, much more environmental education with kids but also adults (more work to prevent forest fires); more work to avoid deforestation; promote tourism more; keep supporting the transportation of high-school students; importance of supporting the solidarity store in Otavalo to sell cabuya and other products (Casa de Intag); reduction of, and training in pesticide use; leadership training; more productive alternative projects; work more in solid waste management (prevention of contamination); special request for Decoin to get more involved in the Manduriacos area; need to work more with the local media; more work on the political sphere(!). There were a few more that I can't recall right now, but you get the idea. All of these ideas came from the community representatives. Most things we do anyway, others we've been wanting to do for a long time. About time then!

We finished by electing DECOIN's new board members: Neither Silvia or I could get out of being reelected (by unanimous vote),,, but we added Sonja Dillmann as Secretary/Treasurer, and Armando Almeida as Vice President. Then we all elected two people from each Parroquia (4 from Garcia Moreno) to make up the expanded Board (called support groups). Including Geovanni Paz, who was chosen as Permanent Consultant, the expanded board is now composed of 21 members. I'm guessing that most of the time the central board will meet, but hope the expanded board can meet not less than 4-5 times per year. I'm also hoping that in the future the support groups will play an active role in Decoin's work.

Then, lunch served with trout from the San Antonio community (one of the projects we supported)and Naranjilla Chicha.
,
A very, very special event.

Oh, one more thing. It could hardly be clearer that THERE WILL BE NO MINING IN INTAG. Not with the kind of folks that accompanied us at the Assembly. Their energy will be needed if the government goes ahead with the plans of exploring in Junin via the newly created state-owned mining company. For now it will be difficult because the company has not money, but that can quickly change. MORE ON THIS IN MY NEXT BLOG

ASAMBLEA DE DECOIN AFIANZA COMPROMISOS DE INTEGRANTES CON LA CONSERVACION DE LOS RECURSOS NATURALES DE INTAG

LA DECOIN MÁS FORTALECIDA QUE NUNCA

En el complejo turístico de Nangulví, y con la participación de 65 personas de aproximadamente 23 comunidades y varias organizaciones, este viernes, 22 de enero la DECOIN llevó a cabo su asamblea para, no solo renovar la directiva, sino para celebrar 15 años de vida de la organización ambientalista.

Silvia Quilumbango, presidenta de la DECOIN, se encargó de dar la bienvenida a los y las participantes de las comunidades, algunos de los cuales iniciaron su viaje temprano en la madrugada. Christian Paz moderó el evento, el cual continuó con un recuento por Silvia Quilumbango de algunas de las actividades y logros realizados por la DECOIN. Pero el tiempo fue demasiado corto para enumerar las cientos de acciones que la organización ha realizado a favor de la conservación de los recursos naturales de la zona (ver a continuación).

La asamblea estuvo contagiada de emoción y alegría. Muchos de los asistentes agradecieron el trabajo de DECOIN a través de esta última década y media. Una buena parte de las intervenciones dieron fe de la importancia del trabajo de concienciación, educación, y apoyo a la creación de otras organizaciones. Otros le reclamaron a la organización por no haber invitado a los cientos de otros "amigos de la DECOIN" quienes formaron parte integral de la lucha contra la minería. Carlos Zorrilla, directivo de la DECOIN, respondió a este justo reclamo diciendo que hubiera sido imposible invitar a 400 o 500 amigos para esta asamblea, pero que con la ayuda de las comunidades y organizaciones, próximamente se realizará una gran fiesta para celebrar la definitiva salida de las empresas de Intag.

Posteriormente los y las asambleístas eligieron a la nueva directiva. Carlos y Silvia fueron eligieron de nuevo como Director Ejecutivo y Presidenta por unanimidad. Sonja Dillman fue electa Secretaria/Tesorera, y Armando Almeida es el nuevo Vicepresidente de la DECOIN. Además, se procedió a elegir a dos representantes de cada Parroquia para conformar grupos de apoyo (ver más abajo)

El Padre Geovanni Paz, quien viajó expresamente desde Otavalo para apoyar la asamblea, fue electo como Asesor Vitalicio.

Después de la elección se pidió a los asambleístas que orienten el trabajo de la DECOIN para los dos próximos años. Todos estuvieron de acuerdo que era indispensable trabajar en las escuelas y colegios en educación ambiental. Muchos expresaron gran preocupación por los incendios agrícolas que azotan la zona y solicitaron que la DECOIN destine más recursos para frenar este flagelo. Otra área de trabajo apoyado por todos fue la expansión y creación de nuevas reservas hídricas comunitarias. En este tema, las presidentas de las comunidades de Río Verde y Cielo Verde expresamente solicitaron a la DECOIN que trabaje más en la zona de los Manduriacos para frenar la terrible deforestación que esta decimando los bosques que protegen sus ríos, a la vez solicitando una mano para crear bosques comunitarios en sus recintos. Los asambleístas también pidieron apoyo para frenar la contaminación, y mayor involucramiento en el manejo de desechos sólidos.

El Padre Geonvanni Paz uno de los fundadores de la DECOIN expresó su admiración por la transformación de los inteños y por la calidad humana de las personas presentes. Recontó su experiencia de los primeros días de la DECOIN, y motivó a los asambleístas a que sigan en la lucha por defender sus derechos, y señaló la importancia de seguir fortaleciendo a las organizaciones. Leyó parte de la carta ecológica del Papa, en la cual llama a tomar conciencia del desastre ambiental creado por el hombre, y la obligación de cuidar la creación. Al final, anunció que en el mes de marzo iniciará un programa de capacitación de líderes que él mismo liderará a través de la Radio Intag (inscripciones en la DECOIN, el Consorcio Toisán o la Radio Intag).

Durante el evento hubo varios números musicales a cargo de la Srta Guachagmira, quien cantó una canción para la DECOIN, acompañada en la guitarra de Luis Burbano, de la comunidad de Cerro Pelado. Después los participantes se motivados con las canciones ecológicas de Alirio Ramírez, quien contó un poco del origen de algunas de sus canciones. Willy Coronel, de Radio Intag, llamó a tomar más conciencia de la importancia de a lucha contra la minería con una hermosa canción de Atahualpa Yupanqui.
El evento cerró con un buen almuerzo acompañado por chicha y truchas provenientes de San Antonio de Cuellaje, unos de los proyectos apoyado por DECOIN.

Sin duda alguna, después de la asamblea, la DECOIN queda más fortalecida que nunca.

Parte de la lista de los integrantes de los grupos de apoyo de la Decoin

García Moreno zona alta: Marcia Ramírez, Nelly Haro y Mariano Guachagmira

Zona baja: Carmen Proaño y Piedad Mora

Peñaherrera: Pedro Bolaños y Oswaldo Armendariz

Plaza Gutiérrez: Roberto Castro y María Vaca

Apuela: Enma Garzón y Jaime Torres

Vacas Galindo: Isabel Anangonó y Ramiro García

Cuellaje: Cristian Ayala

PINETREE and Copper Mesa Mining Corporation's Latest Bullish Report

2009-10-06T05:54:00.009-05:00

Dec 11 2009

Pinetree and Copper Mesa Mining Corporation's Latest Bullish Report

If the quote: -You can never underestimate the intelligence of the American Public- is true, then it is even more true to hold that You can never overestimate the idiocy of the Canadian investment firms.

Yeah, I'm thinking of Pinetree's latest latest brilliant move to take over Copper Mesa.

Who are these guys anyway, and why would they want to throw away more money into the bottomless pit that is Copper Mesa? (Pinetree had invested several millions from squeaky-clean Canadians in the past in this shipwreck)

HERE IS A MINING COMPANY WITH NO CONCESSIONS, heavily in debt, facing a multi-million dollar lawsuit in Canada, hated by local communities, and without any future whatsoever. I wonder how many of Pinetree's investors have an inkling of what the hell their investment firm is up to.

I guess we could say that Pinetree is the proud owner of Copper Mesa's Flotsam (see my previous blog for details) But wait, there just HAS to be much more behind this idiotic move than meets the eye. Is it back-scratching time for the Ol' boys?

Anyway, back to the company's second quarter Fantasy Report (they've yet to publish their 3rd quarter fiction on their web site, but it's available at sedar.com and it's equally enGrossing)..... I have to admit that I always look forward to reading the company’s financial and Management, Discussion and Analysis reports. It’s highly entertaining. The information used here is based on their 2nd quarter financial and Management Discussion and Analysis reports posted on their web site.

The company, according to the reports:
- Had $ 1500 in the bank and owes almost millions of dollars in debt as of June 30th
- Cannot prove their mining titles in Junin are valid, but affirms it wants to develop its “properties” in Ecuador, implying and denying it still owns the JUNIN and Chaucha mining concessions (IN DEC 2009 CODELCO REPORTED THAT IT HAD BEEN DRILLING IN CHAUCHA FOR MONTHS AND THAT IT DID NOT FIND ENOUGH COPPER TO SATISFY THEIR NEEDS.
See:
http://www.vistazo.com/ea/pais/?eImpresa=1014&id=2938
Another google result on a prestigious magazine from August of 2009
http://www.americaeconomia.com/321753-Codelco-explora-yacimiento-de-cobre-en-Ecuador.note.aspx
You do not need to be fluent in Spanish to get get that the Chaucha concession has been explored by Codelco (you can also translated them using the google translation tool)

Just what is up for grabs?

In spite of what Copper Mesa claims in page one of the latest Management’s Discussion and Analysis for the three months ending March 31, 2009, the company no longer has concessions in the Intag area. It lost its most “valuable” concessions- including the Junín mining concession, and Chaucha. The Junin concessions Copper Mesa permanently lost in November 2008 and January 2009. These concessions are in the hands of the government and, according to the new mining law, can only be exploited by a national mining company.

The company list as one of its most important assets the properties in the Junin area. However, Copper Mesa does not have nearly as many legal land titles in the Junin mining site as they claim, ever since the government took away 17 of them away after discovering illegal procedures in their transactions (an additional 15 properties are being looked at for irregularities).

They are certainly not buying a viable company. Copper Mesa’s stocks have lost more than 98% of their value in the last few years (and the slide continues). They are also quite a bit in debt- to the tune of more than three million dollars, and in debt with a community development organization, renters and employees.

The Junin mining site, to list just some of the insurmountable obstacles faced by any mining company idiotic enough to want to resume this project,:

1) Is located in primary cloud forests harboring dozens of endangered species of mammals and birds (including Jaguars, Brown-faced Spider Monkeys, and Spectacled Bears)
2) Has several pre-Incan archeological sites within its boundaries
3) Its “inferred” mineral deposit is several times larger than what was inferred by Bishimetals in the 1990’s after year of exploration.
4) Has aroused unparalleled local government and community opposition
5) Sits wholly within a newly created Municipal 18,000 hectare protected area
6) Since the passing of the new mining law, the concession can only be exploited by the national government.
(For a complete list of obstacles, see the blog, Nineteen Obstacles to Mining Development in the Intag Region of Ecuador

Whoever buys this outfits, also buys a company that has experienced very grave problems with communities and government officials, and has lost around 30 million dollars without anything to show. Certainly the company never drilled within the infamous Junin mining concessions.
What is up for grabs is a legacy of irresponsible administration (not to say lunatic), human rights abuses, violent conflicts, plus a major lawsuit in Canadian courts against the company and the Toronto Stock Exchange. It’s a business bogged down by a huge debt, ridiculously high office rent, astonishingly high wages (especially considering the lack of results), no real assets on the ground, and very negative perception by all involved in this business in Ecuador.

Chaucha and Telimbela. Is Chaucha a real asset? Even if it were, it is very likely no longer in the company’s hands. This mining concession was not picked up by any mining companies for about 10 years after a Mitsubishi Subsidiary finished exploring the site. If it was worth anything, someone would have snapped it up long before Copper Mesa. Antofagasta, a Chilean mining company, pulled out of a partnership with Copper Mesa to develop this site after seeing the poor results of a few months of exploration.

Telimbela is an interesting case in what could be seen as insider trading. The Telimbela concession legally belongs to Ecuagold, which at the time of the exploration deal, was headed by one of Copper Mesa’s ex directors.

In short, the company is selling a business that has, not only no future, but no mining concessions in its name of any worth in Ecuador- with zero chance of ever getting the concessions back- an unsavory local reputation, and the rejection of the local communities where it has worked, plus a multi-million dollar lawsuit against it in Canadian courts.

What a deal!

- Confirms the loss of its Zonia and Emerald Isle mining projects in Arizona to a debtor for 1.7 million bucks. The report didn’t dare specify how many millions it lost in the deal, but there was a transfer of more than 30 million shares of CMMC as part of the deal
http://www.coppermesacorp.com/_resources/news/ACX0808AcquisitonofSGVcloses.pdf
- Suffered 31 million dollars in losses to date
- Failed, again, to mention the loss of 17 properties within the Junin mining concessions, and to notify investors that a new protected area was created right over the mining site.
- Did not mention the multi-million dollar lawsuit presented in Canada against Copper Mesa Mining Corporation plus two of its directors, and the Toronto Stock Exchange (see http://www.ramirezversuscoppermesa.com/)

To start, they lost their US mining interest to the investor who lent them 1.7 million back in 2008 to get them out of financial straits. This is what the company said in their corrected news release, released October 2nd:
Copper Mesa Mining Corporation ("Copper Mesa" or the "Company") (TSX:CUX) today announced the transfer of Redstone Resources' properties to the lender of a bridge loan facility, negotiated on September 10, 2008. This transfer is the result of a non-payment by the Company in June 2009. http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=7473301

Redstone controlled the Emerald Isle and Zonia mines in Arizona. The previous release had said the company had sold Redstone. STREEEETCH.

Interesting about the correction... Could it be that maybe someone in the BC Securities Commission is finally checking to see what the company is saying? If so, it may be because on September 11th, the company was put on a de-listing track by the TSX.
http://www.tmx.com/en/news_events/news_releases/9-11-2009_TSX-ReviewCUX.html

So, ONWARDS in the stretching department. In the latest release (Oct 3) correcting the earlier release about the so-called sale of Redstone Resources, the company asserts the following:

The Company will continue to focus its efforts on the advancement and/or sale of its properties in Ecuador.
http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=7473301

This is rich! Advancement and/or sale of what? If by properties they mean their concessions, they are misleading investors big time. The company definitely lost the Junin mining “properties” to the government in November 2008. You can only develop or sell what you own, not what you hope to own, or imagine you own (see the Losing the Junin Concessions section).

Whopperville. Here’s what the company says on its latest Management,Discussion & Aanlysis report
Also included as part of the 2009 Law was a stipulation, Article 24, that the government had the right to revert to the State any mineral concession on which it had previously conducted any exploration or exploitation. In late April, the MMP issued an internal request for a review and list of any concessions to which Article 24 might apply. On the subsequent list as prepared by the technical group within the MMP were the Junin, Chaucha and Telimbela properties. Although the Company has received no notification from the government that it intends to revert any of the properties under this Article of the 2009 Law, this has nevertheless served to cast a cloud of doubt over the Company's tenure of title to these properties. In fact, essentially every mineral concession has had some prior exploration done on it by the government in Ecuador and is therefore subject to such potential reversion (emphasis mine).

The concessions are not "subject" to such potential reversion- the concessions were reverted back to the state almost a year ago. Here’s additional news to any investor concerned about what is left of their diminishing investment with CMMC and in uncovering lies - The government of Ecuador has carried out exploration on a very few mining concessions in the country and not in “every mineral concession” as the report claims. This is one of the biggest lies yet. Unfortunately for CMMC, the government did invest in exploration in the JUNIN mining concessions (Golden 1, Golden 2), plus Chaucha and Telimbela in the south of the country.

LOSS OF THE JUNIN PROPERTIES. The MD&A report states the following
In November 2008, the Company received notices from the Ecuadorian Regional Director of Mines again nullifying the Company's title to the Junin concessions on the basis that the Company did not file an environment impact study for drilling. Management believes that there are several irregularities in this notice and again they intend to vigorously defend their rights and will take appropriate action to contest this nullification in the Ecuadorian legal system. (See "Measurement uncertainty of the Junin property interest".)

A bit further down the report, the CMMC goes on to assert that:
The Company has been unable to receive confirmation of title to its Junin concessions for the year ended December 31,2008 and 2007.

Scrolling down the report a little bit more you can find this gem:
If the Company is determined to not hold title to the Junin concessions, the impact on the Company would be material.

So, you might wonder, how can the company maintain that its mining concessions were nullified in

one page, then go on to imply, on a different page, that company may yet have title to the land, then say that intends to develop or sell a property when it doesn’t own anything? Unless, that is, they are thinking of developing a Kentucky Fried Chicken in one of their properties in rural Imbabura (average population density in Intag is about 10 persons per square kilometer). They’ll have a hell of a time selling enough greasy chickens to stay in business. Oh, they better not build it on one of the 17 properties that were reverted back to the state in 2008.

Another mini gem: even though the company lost its concessions in Junin, the company still has the “mining property” as an asset in their balance sheets (to the tune of millions).

The fact is that in 2008 the National Assembly issued the famous Mining Mandate that reverted thousands of mining concessions back to the state, particularly those having no active exploration at the time of the proclamation. This included Copper Mesa’s Junin mining concessions. Just in case you are wondering, the National Assembly’s mandate is above all laws in the country. Further, the mandate included several other provisions meant to restrict or prohibit mining, and it does not allow compensation for the loss of concessions. One of the reasons the National Assembly took this measure was to try to curb the speculation with concessions, and the violent conflicts the presence of mining companies had generated in the countryside (including Copper Mesa’s). Since Copper Mesa had been unable to start exploration in Junin (Golden 1 and Golden 2) due to widespread opposition when the National Assembly issued the Mandate, the company lost the Junin mining concessions. It’s that simple.

Miscellaneous Bullish.
The company still reports this piece:
The Junin project hosts an inferred mineral resource of 982 million tonnes grading 0.89% copper, 0.04% molybdenum and 1.9 glt of silver, or 1.21 % copper equivalent at a 0.4% economic copper cut-off grade (see Micon's Junin Report).

If you’ve read some of my previous blogs you’d know that Micon International, the company responsible for coming up with those impressive resources at Junin later publicly admitted they could not confirm the data due to, among other things, termite damage to the core samples (no, I am not making this up). In fact, after years of exploration, the Japanese only inferred the possible existence of 318 million tons at only %0.7 copper (total 2.2 million tons of copper). This is almost four times less than what Micon’s over optimistic estimate, which cannot even be verified.

So much for even inferring the Junin site has so much copper. What is truly amazing to me is how Canadian regulatory entities allow the company to continue to report such garbage and in the process help investors lose billions every year. But what am I saying, this is Canada we are talking about, speculator heaven.

So, to recap, as of October 2009 is: Copper Mesa lost their concessions in Ecuador,, it is millions in debt (but did have $ 1500 in cash at the end of June); it also lost their US mining projects,, in September TSX placed it in the delisting track; has all kinds of financial commitments to fulfill (including 1.17 million termination benefits for two officers and an employee; has over $ 100,000.00 in future rent commitments, and so on and forth (the very latest is that the TSX just denied the company's request to postpone the upcoming shareholder meeting)

Fire Sale.... AND, I found this at the end of the Interim Financial Statement:
Sale of Excel! Resources Corporation
In August 2009, the board of directors approved the sale of 100% of the shares of Excell Resources Corporation to an officer of the Company for $50,000, the deemed fair value as of the date of sale..

Fifty thousand dollars for a company on which there is preciously little information about on the Web, except that it may be an employment agency based in Salt Lake City.

And, lastly, Copper Mesa, apparently has sold, or is about to sell, their land in and around the Junin mining concession to a third party that is telling the locals they are interested in agriculture (we have been unable to confirm if the land has been sold, leased, or rented). Needless to say, very few people are swallowing that lie. The company supposedly buying the land has no connection with agriculture projects whatsoever (it's called Druoet Schwarz), with interest in WATER (the company was found in 2008 and one of the partners is an ex army colonel) What everyone is worried about is that the presence of this company will spark yet another round of confrontations and divisions. At least three of the employees of this company are ex- Copper Mesa Corporation.

I could go on, but why? You get the point. But do the Canadian regulators get it?

sources: Management's Discussion and Analysis For the six months ended June 30,
INTERIM CONSOLIDATED FINANCIAL STATEMENTS -UNAUDITED
JUNE 30, 2009
http://www.coppermesacorp.com/_resources/unaudited_financials/2009_2Q_Unaudited_Interim_Financials_MDA.pdf

2009-10-06T05:53:00.000-05:00

COPPER MESA SELLING ITS FLOTSAM

2009-07-17T13:44:00.001-05:00

COPPER MESA SELLING ITS FLOTSAM

Apparently Nortec Ventures decided not to buy Copper Mesa’s Ecuadorian flotsam. But the company’s debris is still for sale.

Just what is up for grabs?

In spite of what Copper Mesa claims in page one of the latest Management’s Discussion and Analysis for the three months ending March 31, 2009, the company no longer has concessions in the Intag area. It lost its most “valuable” concessions- including the Junín mining concession, and Chaucha. The Junin concessions Copper Mesa permanently lost in November 2008 and January 2009. These concessions are in the hands of the government and, according to the new mining law, can only be exploited by a national mining company.

The company list as one of its most important assets the properties in the Junin area. However, Copper Mesa does not have nearly as many legal land titles in the Junin mining site as they claim, ever since the government took away 17 of them away after discovering illegal procedures in their transactions (an additional 15 properties are being looked at for irregularities).

They are certainly not buying a viable company. Copper Mesa’s stocks have lost more than 98% of their value in the last few years (and the slide continues). They are also quite a bit in debt- to the tune of more than three million dollars, and in debt with a community development organization, renters and employees.

The Junin mining site, to list just some of the insurmountable obstacles faced by any mining company idiotic enough to want to resume this project,:

1) Is located in primary cloud forests harboring dozens of endangered species of mammals and birds (including Jaguars, Brown-faced Spider Monkeys, and Spectacled Bears)
2) Has several pre-Incan archeological sites within its boundaries
3) Its “inferred” mineral deposit is several times larger than what was inferred by Bishimetals in the 1990’s after year of exploration.
4) Has aroused unparalleled local government and community opposition
5) Sits wholly within a newly created Municipal 18,000 hectare protected area
6) Since the passing of the new mining law, the concession can only be exploited by the national government.
(For a complete list of obstacles, see the blog, Nineteen Reasons Why Nortec Should Stay out of Intag

Whoever buys this outfits, also buys a company that has experienced very grave problems with communities and government officials, and has lost around 30 million dollars without anything to show. Certainly the company never drilled within the infamous Junin mining concessions.
What is up for grabs is a legacy of irresponsible administration (not to say lunatic), human rights abuses, violent conflicts, plus a major lawsuit in Canadian courts against the company and the Toronto Stock Exchange. It’s a business bogged down by a huge debt, ridiculously high office rent, astonishingly high wages (especially considering the lack of results), no real assets on the ground, and very negative perception by all involved in this business in Ecuador.

Chaucha and Telimbela. Is Chaucha a real asset? Even if it were, it is very likely no longer in the company’s hands. This mining concession was not picked up by any mining companies for about 10 years after a Mitsubishi Subsidiary finished exploring the site. If it was worth anything, someone would have snapped it up long before Copper Mesa. Antofagasta, a Chilean mining company, pulled out of a partnership with Copper Mesa to develop this site after seeing the poor results of a few months of exploration.

Telimbela is an interesting case in what could be seen as insider trading. The Telimbela concession legally belongs to Ecuagold, which at the time of the exploration deal, was headed by one of Copper Mesa’s ex directors.

In short, the company is selling a business that has, not only no future, but no mining concessions in its name of any worth in Ecuador- with zero chance of ever getting the concessions back- an unsavory local reputation, and the rejection of the local communities where it has worked, plus a multi-million dollar lawsuit against it in Canadian courts.

What a deal!

Article 24 and Copper Mesa's -Nortec doomed venture

2009-06-04T10:15:00.009-05:00

Another Bad Deal in the Works

In the midst of Copper Mesa and Nortec Venture's deal, and not mentioned in the company's latest creative reports, is the implication of the Ecuadorian government's intention of taking over as many old mining concessions- including Copper Mesa's ex JUNIN concessions, which the company lost in November of 2008

As recent as May 24 of this year, the government publicly said that it intends to nationalize the mining sector (http://www.reuters.com/article/businessNews/idUSTRE54N03020090524?feedType=RSS&feedName=businessNews.

Article 24 of the recently approved mining law calls for the government to take back all mining concessions in which in the past it invested in exploration and geological investigation. The application of this article will directly affect all three of the company's ex-concessions in Intag: Golden 1, Golden 2 and Magdalena 1, plus Chaucha (in the south) since the Ecuadorian government, through its national mining company, Codigem, directly took part in, and helped fund exploration activities in all of these ex-concessions during the 1990's.

This is a material as it gets, and it was not reported in the company's latest year end 2008, and first quarter 2009 reports. But this is a little bit like saying the company will lose something they don't even own, since the company lost all of its concessions in the JUNIN area starting November 2008. Yet in parts of the its latest financial and analysis reports, it claims to own them....*see below)

(Taken from p. 1 of Management and Discussion Analysis)
Overview
During the year ended December 31, 2008, the Company acquired all of the common shares of Redstone Mining Corporation (formerly St. Geneviève Resources Ltd.) (“RMC”) and its United States’ properties - the historical past-producing Zonia and Emerald Isle copper mines as well as an exploration prospect in Arizona and other exploration projects in Nevada, thus broadening the Company’s horizons by diversification in the Americas.

In Ecuador, the Company holds a 100% interest in both the Chaucha(1) copper molybdenum porphyry property and the Junin(1) copper-molybdenum, gold-silver porphyry property;

Interestingly enough, later on the report the company says it hasn't received confirmation it owns the concessions since 2007
(The Company has been unable to receive confirmation of title to its Junín concessions for the year ended December 31, 2008 and 2007."- p. 11 of the Management’s Discussion and Analysis For the Year Ended December 31, 2008)

The company also claims that it lost its concessions in Junin because it didn't have an EIS-, implying that by fulfilling this criterion it may reclaim its concessions. This is a lie. The company lost its Golden 1 and Golden 2 concessions due to the application of the Mining Mandate, which reverted back to the state all concessions that at that time did not comply with a number of criteria, only one of which was not having an EIS. In the case of Copper Mesa, the main reason the company lost its Golden 1 and Golden 2 concessions was because the company never properly consulted with the communities- a Constitutional issue. In any case, Article 24 of the mining law makes this a moot issue, since it forces the government, through the National Mining company, to assume ownership of these and other mining concessions.

Keep tuned for a detailed anaylisis of Copper Mesa's recent financial and Management Discussion and Analysis reports- including the company's doubtful reporting regarding the real amount of metals at the company's ex JUNIN mining concessions.

See the previous blog for another 19 reasons why this is a REALLY BAD DEAL!

Carlos Zorrilla

2009-06-04T10:14:00.002-05:00

Nineteen Reasons Why Nortec Ventures Should Stay Out of the Intag Region of Ecuador
Written by Carlos Zorrilla
Thursday, 23 April 2009
Canada's Nortec Ventures Corp., a mining company based in Vancouver, announced this month its intention of buying Copper Mesa Mining Corporation's Ecuadorian assets.

Three Intag residents recently filed a lawsuit against Copper Mesa (formerly Ascendant Copper), as well as the Toronto Stock Exchange, for their alleged responsibility of ongoing violence directed at local farmers and community leaders who oppose mining in the region.

Currently, the principal obstacles to mining development in the Intag area are:

A. Based on the Bishi Metals Environmental Impact Assessment of mining in Intag, and on a small (450,000 ton) copper mine
1. Mining project would relocate hundreds of families from four communities.
2. Mining would impact primary cloud forests.
3. Project would cause massive deforestation.
4. Deforestation would lead to drying of local climate, affecting thousands of small farmers.
5. Forests in the concessions are the habitat of not less than 12 species of mammals and birds facing extinction, including jaguars, spectacled bears and the brown-faced spider monkey (Based on incomplete studies, Decoin identified approximately 30 species of threatened or endangered plants and animals).
6. EIA predicted contamination of rivers and streams with lead, arsenic, chromium, cadmium and other toxic substances.
7. Project would destroy pre-Incan archeological sites.
8. It would impact the Cotacachi-Capayas Ecological Reserve (one of the world’s most biologically diverse).

B. In addition
9. Large-scale mining would violate the legally-binding Cotacachi County Ecological Ordinance created in 2000.
10. In 2008 the Cotacachi County government created an 18,000 hectare municipal protected area right on top of the mining site. Mining is one of the activities prohibited within the protected area.

C. Opposition. There is widespread opposition to the Intag mining project. This includes:
11. All seven Parish township governments, the County government of Cotacachi and the Provincial government.
12. Most communities surrounding the mining project.
13. 90% of NGO's in Cotacachi County and Intag oppose the project.

D. Exaggerated Copper Claims
14. In 2007, Micon International, the entity contracted by Ascendant Copper to evaluate the Junin copper deposit, said that it could not confirm their earlier estimates due to degradation of samples. Copper Mesa had been saying all along that the Junin copper deposit had four times more copper than what the Japanese inferred after years of exploration.

E. Further environmental challenges
15. The area receives between 3000 and 4000 millimeters of annual rainfall.
16. The ore contains toxic heavy metals and sulfur (which would cause Acid Mine Drainage).
17. There is a superabundance of underground water (according to Japanese EIA)
18. Area is exceptionally steep and mountainous.
19. The Toisan Range has many geological faults, posing significant earthquake threat.

Further Reading

Lawsuit: Canadian Mining Firm Financed Violence in Ecuador
http://upsidedownworld.org/main/content/view/1742/68/

Ecuador: Mining Protests Marginalized, But Growing
http://upsidedownworld.org/main/content/view/1673/49/

Ecuador: Mining and the Right of Way
http://upsidedownworld.org/main/content/view/1777/49/

In Ecuador, Mass Mobilizations Against Mining Confront President Correa
http://upsidedownworld.org/main/content/view/1588/49/

Copper Mesa Mining Expected to Lose Junin Project in Ecuador
http://upsidedownworld.org/main/content/view/1586/49/

Ecuador's Constitution Gives Rights to Nature
http://upsidedownworld.org/main/content/view/1494/49/

NGO's Respond to Ascendant Copper
http://upsidedownworld.org/main/content/view/560/49/

Ecuador: Human Rights Organization Condemns Paramilitary Tactics by Ascendant Copper
http://upsidedownworld.org/main/content/view/529/49/

Canadian Mining Project in Ecuador Tainted by Human Rights Abuses
http://upsidedownworld.org/main/content/view/438/49/

We Will Fight Day by Day: No to Mining in Intag, Ecuador
http://upsidedownworld.org/main/content/view/385/49/

Ecuadorians March for Justice in Quito
http://upsidedownworld.org/main/content/view/360/49

For more information please contact:

DECOIN

Defensa y Conservación Ecológica de Intag

www.decoin.org

decoin@hoy.net

Mining ban lift? Maybe, but not for Copper Mesa

2009-03-23T10:34:00.000-05:00

ECUADOR: Mining ban lift, but not for Copper Mesa
Español a continuación

According to Reuters’s November 10th article, Correa's government is trying to revive the mining sector in the South of the country (with very little luck by the way), but the government is explicit that the nation's mining plans do not include the Intag area, where Copper Mesa use to have the Junin concessions (the government permanently took the company’s concessions in November of 2008).

On the 17th of March, CONAIE, Ecuador's powerful indigenous federation, made up by several other indigenous organizations, presented a lawsuit against Ecuador's new mining law, for violating the Constitution. The lawsuit argues the law violates Indigenous rights to Free, Prior and Informed Consent.

The Shuar Federation, which has communities in the vicinity the Ecuacorrientes’ El Mirador mine, has said that they will not allow any mining companies into their territories.

So, while the government wants to push mining development in the south of the country, the country's indigenous movements prepare to give battle. And Intag and Junin are, for now, out of the picture as far as mining development goes.

Reuters’ article below

cz

Tue Mar 10, 2009 4:39pm EDT

UPDATE 2-Ecuador lifts ban on miners, sees them as priority

Tue Mar 10, 2009 6:10pm EDT

By Alonso Soto

QUITO, March 10 (Reuters) - Ecuador will immediately lift a mining ban on Kinross and Corriente, two companies that are part of a handful of projects considered "priority" by the Andean nation, a top mining official told Reuters on Tuesday.

Deputy Mining Minister Jose Serrano said the government planned to start individual negotiations with miners to ink new deals and set the base price for a windfall tax he says will be fair for both sides. A new mining law allows the state to opt for service contracts, but Serrano said Ecuador wants extraction deals.

"The rules of the game are clear for everyone now," Serrano said. "The mining decree has been fulfilled... it can't be revived."

Still, analysts worry the cash-strapped government could seek much better contractual terms in tough negotiations with miners. The global crisis has hit key oil exports and severely curtailed the OPEC nation's income.

Serrano said the government "wants companies to keep a reasonable profit when prices climb, but share it with the state." The windfall tax has worried investors seeking capital in an industry hit hard by the global crisis.

Mining companies and investors have grown wary of the leftist government of President Rafael Correa, which set a tax on extra revenues from high metal prices and banned mining to end what he called speculation and tame mounting protests from environmental groups.

"We are in a show-me period were investor have to see if Ecuador is serious about restarting mineral exploration," said Michael Gray, an analyst with Genuity Capital Markets in Vancouver. "Its a wait-and-see approach for the industry."

"INVESTMENT PRIORITIES"

Serrano said the government considers Kinross (K.TO), Corriente (CTQ.TO), IamGold (IMG.TO) and International Minerals (IMZ.TO) as investment priorities for the country.

Correa, a U.S.-educated economist, is seeking investment ranging from Canada to China and Iran, to compensate for dwindling oil revenue that had been financing multibillion-dollar infrastructure projects.

Still, the president, who faces reelection on April 26, has hardened his rhetoric against foreign companies that many Ecuadoreans regard as pillagers.

In January, Ecuador approved a new mining law that boosted governmental control over an industry that in recent years had attracted dozens of companies exploring for precious metals.

Ecuador has no large-scale mining. Some companies have found big deposits of copper, gold and silver in its southern and Amazon regions.

Environmental and Indian groups have threatened to resume street protests to demand communities have veto powers over local large-scale mining. Violent demonstrations could pose a risk to the nascent industry.

Serrano said the government had no plans to auction the Junin copper project, which was taken over by the government from Ascendant Copper on charges the Canadian miner illegally acquired the concession. The project was marred by sometimes violent clashes between anti-and-pro mining communities and private security guards. (Editing by David Gregorio)
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN1154076920090310
__________________________________________________________________________

Artículo de Reuters avisando el levantamiento de la prohibición de actividades mineras en el Ecuador, pero no para Copper Mesa ni el proyecto JUNÍN. La empresa definitivamente perdió las concesiones de su proyecto JUNÍN el 12 de Noviembre del 2009.

Por otro lado el 17 de Marzo la CONAIE presentó un recurso legal para declarar la nueva Ley minería inconstitucional por violar varios derechos constitucionales, incluyendo el derecho al Consentimiento Libre, Previo e Informado. Mientras tanto, representantes del pueblo Shuar han dicho que rechazarán la presencia de cualquier empresa minera dentro de sus territorios. El proyecto de El Mirador de Ecuacorrientes (Corrientes Resources) podría ser afectado.

Actualización 2-Ecuador levanta la prohibición sobre los mineros, los ve como prioridad
Jue Mar 10, 2009 6:10 PM EDT

Por Alonso Soto

QUITO, 10 de marzo (Reuters) - Ecuador levantará de inmediato una prohibición de actividades mineras en contra de Kinross y Corriente, dos empresas que forman parte de un puñado de proyectos considerados "prioritarios" por la nación andina, un alto funcionario del gobierno le dijo a Reuters el martes.

El Subsecretario de Minería, José Serrano dijo que el gobierno tiene previsto iniciar las negociaciones con las empresas para consolidar nuevos negocios y establecer el precio base para los impuestos extraordinarios, que aduce ser justo para ambas partes. La nueva ley le permite al estado optar por contratos de servicios, pero Serrano afirmó que el Ecuador quiere contratos de explotaciones.

"Las reglas del juego son claras para todos ahora", dijo Serrano. "El Mandato Minero se ha cumplido ... no puede ser reactivado".

Sin embargo, los analistas se preocupan que el régimen, con escasa reservas en efectivo, podría insistir en duras condiciones en las negociaciones con los mineros. La crisis mundial ha afectado a las exportaciones claves de petróleo y severamente restringido los ingresos de la nación, perteneciente a la OPEC.

Serrano dijo que el gobierno "quiere que las empresas se quedan con de un beneficio razonable cuando los precios suban, pero que compartan con el Estado." El impuesto por ganancias extraordinarias tiene preocupado a inversionistas en búsqueda de capital en una industria duramente golpeada por la crisis mundial.

Empresas mineras e inversionistas han sido cauteloso del gobierno izquierdista del presidente Rafael Correa, quien estableció un impuesto sobre los ingresos extraordinarios de los altos precios de los metales y prohibió la minería para poner fin a lo que él llamó la especulación y calmar las crecientes protestas de grupos ambientalistas.

"Estamos en un período de espera donde los inversores tienen que ver si el Ecuador esta serio para reiniciar la exploración de minerales", dijo Michael Gray, analista de Genuity Capital Markets en Vancouver. "Es una estrategia de esperar y ver de la industria."

"PRIORIDADES DE INVERSIÓN"

Serrano dijo que el gobierno considera Kinross (K. A), Corriente (CTQ.TO), IamGold (IMG.TO) y la Internacional de Minerales (IMZ.TO) como las prioridades de inversión para el país.

Correa, un economista educado en los Estados Unidos, busca inversiones desde Canadá, a China e Irán, para compensar la disminución de los ingresos provenientes del petróleo, los cuales han estado financiando multimillonarios proyectos de infraestructura.

Sin embargo, el presidente, quien se enfrenta a la reelección el 26 de abril, ha endurecido su retórica contra las empresas extranjeras que muchos ecuatorianos consideran saqueadores.

En enero, Ecuador aprobó una nueva ley de minería que impulsó el control gubernamental de una industria que en los últimos años ha atraído a decenas de empresas para la exploración de metales preciosos.

Ecuador aún no cuenta con minería a gran escala. Algunas empresas han descubierto grandes yacimientos de cobre, oro y plata en el sur del país y la Amazonía.

Grupos ambientales e indígenas han amenazado con reanudar las protestas callejeras para exigir el poder de veto que las comunidades tienen sobre la minería a gran escala. Manifestaciones violentas podría plantear un riesgo para la naciente industria.

Serrano dijo que el gobierno no tenía planes para subastar el proyecto de cobre de Junín, el cual fue asumido por el gobierno de Ascendant Copper debido a acusaciones que la minera canadiense adquirió ilegalmente la concesión. El proyecto en ocasiones se vio empañado por violentos enfrentamientos entre comunidades anti y pro-minería por un lado, y las comunidades y guardias de seguridad privada. (Edición de David Gregorio)

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN1154076920090310

© 2009 Thomson Reuters Todos los derechos reservados
English

COPPER MESA SUED IN CANADA

2009-03-05T14:01:00.002-05:00

Activist presented lawsuit against the TSX which includes Ascendant Copper on March 4

espaniol a continuacion..

http://upsidedownworld.org/main/content/view/1742/68/

Lawsuit: Canadian Mining Firm Financed Violence in Ecuador
Written by Jennifer Moore
Tuesday, 03 March 2009
Source: The Tyee

TMX Group denies claim. Win could affect thousands of other projects by Canadian companies.

"Financing being raised in Canada is travelling across borders to do harm," said lawyer Murray Klippenstein by phone from his office in Toronto. "We want to find out if our legal system can respond to this."

Klippenstein is perhaps best known for his representation of the estate and family of native activist Dudley George, who was shot and killed by police in Ipperwash Provincial Park in Ontario in 1995. This lawsuit revealed deep political involvement from the premier's office and resulted in a landmark public inquiry.

In another ambitious and possibly precedent-setting case, Klippenstein is representing three villagers from the valley of Intag in northwestern Ecuador who are suing Copper Mesa Mining Corporation (TSX:CUX) and the Toronto Stock Exchange. They allege that company directors and the TMX Group have not done enough to reduce the risk of harm being faced by farmers and community leaders in Intag who have faced violent threats and attacks for opposition to a large open-pit copper mine in their pristine cloud forests.

Still, they hope to go further. "What is happening in Intag is illustrative of a wider problem," a summary of the legal claim states, "the corporate and financial unaccountability of the Canadian mining industry." So while the case uses established legal principles, the plaintiffs hope it will lead to long-awaited legal reforms to help better control thousands of Canadian financed projects abroad.

Klippenstein, who said he "has learned to go miles on very little," acknowledges the "staggering financial mismatch" and says that companies have hundreds of millions of dollars to gain, so it won't surprise him if they spend tens of millions on the case. He also anticipates years of counterattacks, including motions and appeals on technicalities.

But he emphasized that the basics of the case are straightforward. "There's a simple fundamental legal point that you shouldn't harm somebody and that you shouldn't use your money to hire someone who you know is likely to do harm."

Conflict escalates

Marcia Ramírez is secretary of the Intag Community Development Committee. She lives near the end of the road in an isolated village in one of the most biodiverse places on earth. Her community of Chalguayaco Alto sits at the crossroads of two biodiversity hotspots, the Tumbes-Chocó-Magdalena and the Tropical Andes.

"It isn't fair," she told The Tyee, "that a foreign company can come here and contract people who attack us for defending our rights, for wanting to live in a healthy environment, for defending our land and our water." She added, "We'd like the stock exchange to listen to us and to understand that we've been very hurt by one of their companies."

Now 25 years old, the fight against large scale copper mining has marked daily life for the diplomatic and dedicated leader since she was about 12.

Broad-based opposition to large scale copper mining arose when a Japanese company was initially carrying out mineral exploration a short distance away. When the company released its Environmental Impact Assessment report for the proposed mine, the news that four communities would be displaced, as well as massive deforestation, local desertification, river contamination and harm to endangered species sparked vociferous opposition that persists.

Since Copper Mesa, who has a strategic alliance with the giant Rio Tinto, took over the project in 2004, new issues have emerged with apparent attempts to break the opposition. Now land trafficking, threats of violence, as well as relatively high-paying job offers have been driving a wedge between neighbours and families in these rural communities.

"But," commented Ramírez, "what most hurt is when they came... with armed men and sprayed us with gas."

In early December 2006, over 50 heavily armed security guards, mostly ex-soldiers, were hired to reach company concessions and set up camp. Local residents had been tipped off and gathered along the narrow dirt road that the company-hired trucks would have to pass. When they arrived, Ramírez and others tried to urge the armed men to turn around. But instead, the security agents sprayed tear gas into their faces from only a metre away and fired their weapons into the air, injuring one man, also a plaintiff in the case.

When the residents didn't back down, the guards finally retreated.

The incident was caught on film by a European student researching the controversy and is retold as part of the recent film Under Rich Earth by director Malcolm Rogge that debuted at the Toronto International Film Festival in September. It has also been denounced in a complaint to the Inter-American Human Rights Commission.

Prior warning

Canadian authorities were warned that such an incident could arise.

On March 8th, 2005, three months before Copper Mesa (then Ascendant Copper) was listed on the TSX, County Mayor Auki Tituaña wrote to the Finance and Audit Committee of the Toronto Stock Exchange: "We consider it to be appropriate and fair that before accepting open "trade" of Ascendant Copper Corporation's stocks in the Stock Market, you evaluate in depth the "new" company's merits..."

Included in his list of 14 concerns were lack of prior community consultation, lack of legally required municipal approval, violation of a municipal ordinance that declares the area an "Ecological County," as well as attempts to foster divisions as a "means to achieve company profits against the citizen's will and at a cost of the loss of unique biodiversity in our territory."

Then in May, Carlos Zorrilla, executive director of the Ecological Defense and Conservation of Intag (DECOIN), travelled to Ottawa to present a complaint to the Department of Foreign Affairs claiming that Copper Mesa had violated the Organization for Economic Cooperation and Development's (OECD) Guidelines for Multinational Enterprises. Mining Watch and Friends of the Earth Canada supported the claim.

"I'm here," he says in a press release, "because Canadians need to understand the real risk of violence that is emerging as a result of this company's activities." He added, "The Canadian government must take action to curb the excesses of Canadian mining companies operating and exploring overseas."

The complaint was withdrawn after eight months when it was apparent that the appropriate authorities would not apply the relevant procedures. The legal summary notes that "the TSX stock market listing of Copper Mesa has allowed the company to obtain over $25 million in capital funds -- some of which paid for the armed attackers" in December 2006.

Carolyn Quick, director of corporate communications for the TMX Group, told The Tyee her firm considers the case to be "entirely without merit" and that they will "vigorously defend this position." She would give no further comment about the letter from Mayor Tituaña nor the complaint made to DFAIT. No one from Copper Mesa was available to speak with The Tyee.

Globalization of legal accountability

Another challenge in holding companies to account in Canada, where the bulk of the world's mining companies are based, are complicated corporate structures that criss-cross continents.

"By dispersing their actions across borders and saying that 'Well, we didn't do that in Canada or Ecuador, that decision was made in the U.S.,' they can evade accountability. The courts can respond and say 'Take this case somewhere else,'" says Klippenstein.

Copper Mesa whose headquarters in Colorado, "has connections to some nine different legal jurisdictions, making it difficult to identify which jurisdiction is the proper one in which to hold the corporation accountable," says the legal summary of the case.

The former website of Copper Mesa (then Ascendant Copper) acknowledged that its corporate structure makes suing directors difficult: "All of the directors of Ascendant and substantially all of their assets and those of Ascendant are located outside of Canada. It may not be possible for purchasers of securities being qualified for distribution under this prospectus to effect service of process within Canada upon directors who reside outside of Canada..."

It is for this reason that the lawsuit focuses on decisions allegedly made in Ontario.

'Establish clear legal norms in Canada'

However, one possible advantage for rural residents of Intag preparing for a lengthy legal battle on tricky Canadian territory is that they are not alone in their concern.

Their broader goals for legal regulations of Canadian mining companies echo what the Standing Committee on Foreign Affairs and International Trade (SCFAIT) and the United Nations Committee on the Elimination of Racial Discrimination and other civil society groups have already been saying.

While Carlos Zorrilla was in Ottawa in 2005, the SCFAIT was writing its 14th report, which recommended that the government "Establish clear legal norms in Canada to ensure that Canadian companies and residents are held accountable when there is evidence of environmental and/or human rights violations associated with the activities of Canadian mining companies."

The government responded saying that it "will continue to examine the best practices of other states attempting to address the accountability of businesses for activities conducted abroad." But it has yet to implement mandatory rules.

Still Klippenstein is hopeful in the face of tough odds. "One has to trust in the promise of a certain amount of fairness and independence that the justice system can provide. It has been shown that powerful people can be brought to kneel this way before."

It took eight years of legal proceedings before a public inquiry was called in the Dudley George case. They never even made it to court, but a long list of recommendations was implemented.

Ramírez is also optimistic that they have a chance at justice through Canadian courts as part of their fight to leave Intag's cloud forests intact.

She points out the variety of sustainable development projects that they have been working on as alternatives to large scale mining, including community owned watersheds, a mixed mini-hydroelectric company, as well as agricultural and tourism initiatives. She urges Canadians to see the benefits: "We want future generations to have what we have."

Jennifer Moore is a freelance journalist in Ecuador.

http://orosucio.madryn.com/articulos/09_03_04.html

ORO SUCIO - Opinión y reflexión
Marzo 04, 2009
Ecuatorianos demandan en Canadá a minera Copper Mesa y la Bolsa de Valores de Toronto

[Querella ecuatoriana en Canadá] En la parte elevada de los Andes ecuatorianos donde desaparecen las carreteras en los bosques nublados de la zona de Intag, alejado de la ciudad capital de Quito y otras ciudades, se encuentra un área de extraordinaria belleza natural. Está salpicado de aldeas pequeñas, fincas familiares y pequeñas fincas cafetales, ubicados junto a la prístina reserva ecológica nacional de Cotacachi-Cayapas. Sin embargo una compañía minera canadiense en fase de exploración afirma que un importante yacimiento de cobre está enterrado debajo de este ecosistema exuberante y comunidades pacíficas. Copper Mesa Mining Corporation, financiada principalmente en la Bolsa de Valores de Toronto, y asociada con el gigante minero mundial, Rio Tinto, afirma que se debe excavar una enorme mina a cielo abierto en las montañas del bosque nublado a fin de extraer el cobre. Marcia, Israel y Polibio alegan en su demanda que la TSX tenía un deber legal bajo las leyes de Canadá de dejar de proveer ayuda financiera a una compañía como Copper Mesa donde existía un riesgo previsible de que los fondos recaudados en la Bolsa serían utilizados para perjudicar a personas en Ecuador.

Marzo 2009, ver la página de la demanda

No obstante, la mayoría de los campesinos y líderes políticos ecuatorianos de la zona creen que la enorme mina a cielo abierto traerá mucho más destrucción social, ecológica y económica de lo que jamás se podría justificar. Los miembros y líderes de la comunidad local han protestado en repetidas ocasiones y han tomado la decisión de bloquear la mina que se propone. Afirman que los pasos que ha emprendido la compañía hasta ahora para iniciar las actividades de exploración minera violan las leyes ecuatorianas relacionadas con los derechos de la tierra y la protección ambiental, y han provocado violentos conflictos en la comunidad. Asimismo aseveran que los agentes de la compañía han recurrido a agresiones físicas, amenazas de muerte y numerosas violaciones de los derechos humanos.

Ataques a las comunidades

El 2 de diciembre de 2006, los miembros de la comunidad fueron alertados que una numerosa y armada brigada de seguridad privada contratada por Copper Mesa (conocida entonces como Ascendant Copper), venía por el camino comunitario con el objeto de pasar a la fuerza por las comunidades y llegar al yacimiento de cobre. Los miembros de la comunidad se movilizaron rápidamente y un grupo de hombres, mujeres y niños se reunieron en el camino para defender sus hogares, tierras y el medio ambiente. Una estudiante de Europa que estuvo de visita para estudiar la controversia captó con una cámara de video lo que sucedió después. Varias camionetas de propiedad de la empresa o contratadas se detuvieron en el bosque, y docenas de hombres uniformados, portando carabinas y revólveres, se bajaron y se acercaron al grupo que bloqueaba pacíficamente el camino.

Los paramilitares se detuvieron a pocos metros de los comuneros del sector. Los miembros de la comunidad les suplicaron que se fueran e insistieron que se llamara a la policía. Repentinamente y sin provocación el líder de los paramilitares apuntó con un bote de gas lacrimógeno y roció a los rostros de las mujeres y hombres a solo un metro de distancia. Luego desenfundó su revólver y comenzó a disparar. Otros miembros de la brigada paramilitar hicieron lo mismo. En total, el personal armado de la compañía hicieron veintenas de disparos.

A pesar del ataque violento no provocado y el revoltijo consiguiente, los miembros de la comunidad no se dispersaron ni se echaron atrás. Sorprendidos y confundidos por la valentía de los comuneros, las fuerzas de la compañía minera se retiraron, se reagruparon, y luego se fueron en las camionetas de la empresa. Una de las mujeres afectadas por el gas fue Marcia Ramírez. Uno de los hombres heridos durante la balacera y el caos fue Israel Pérez.

El ataque del 2 de diciembre de 2006 que patrocinó la compañía fue solo una parte de la amplia campaña llevada a cabo a fin de quebrantar la oposición local, basada en principios, contra la mina a cielo abierto de Copper Mesa. A lo largo de 2005, 2006 y 2007, Polibio Pérez, un representante de la comunidad local, y su familia, recibieron varias amenazas de muerte debido a su papel de líder de la oposición a la minería en Intag - amenazas que según los miembros de la comunidad fueron perpetradas por individuos vinculados a Copper Mesa Mining Corporation. El 31 de julio de 2007, Polibio Pérez fue agredido físicamente por un grupo con vínculos a la compañía minera.

Estas amenazas y ataques son parte de una campaña más amplia de intimidación, acoso y violencia realizada por los aliados de la compañía Copper Mesa de Canadá y a veces aparentemente por agentes de la misma, con el objeto de acallar la amplia y sostenida oposición local a la gigantesca mina de cobre a cielo abierto en la zona de Intag.

Lo que está sucediendo en Intag es ilustrativo de un problema más amplio – la falta de rendición de cuentas corporativas y financieras de la industria minera canadiense. Estos eventos en Ecuador se repiten en numerosos otros países desde la República Democrática del Congo, hasta Perú, las Filipinas e Indonesia, y son indicios del hecho de que bajo las leyes actuales de Canadá, las compañías mineras canadienses no se responsabilizan por los daños que causan en el extranjero.

Sin embargo, frente a probabilidades en contra que eran astronómicas, la Srta. Marica Ramírez, el Sr. Israel Pérez y el Sr. Polibio Pérez al final pudieron encontrar la manera de entablar acciones legales en Canadá a nombre de sus comunidades para defender sus hogares, sus tierras y el ecosistema contra instituciones corporativas y financieras ubicadas a miles de kilómetros de distancia, cuyos agentes y aliados causaban tanta violencia y daño, con impunidad y aparentemente sin rendición de cuentas.

Demanda contra la Bolsa de Valores de Toronto (TSX)

La Bolsa de Valores de Toronto (TSX) facilita más financiamiento para compañías mineras internacionales – especialmente las compañías mineras en fase de exploración – que cualquier otra bolsa de valores en el mundo. Lo hace ignorando los daños potenciales y reales que puede causar, y a menudo causa, este financiamiento.

En el caso de Intag, la cotización en la bolsa de valores de Copper Mesa (en aquel tiempo bajo el nombre de Ascendant Copper) de parte de la TSX permitió que la compañía obtenga más de $25 millones de dólares de capital – un parte del cual financió a los atacantes que hirieron a Marcia e Israel el 2 de diciembre de 2006. El comité de la TSX había acordado previamente a cotizar a Copper Mesa (Ascendant Copper) en su bolsa de valores a pesar de haber sido advertido específicamente mediante una carta de un alcalde local en Ecuador acerca de la participación de la compañía en un conflicto local, y no obstante una advertencia emitida por la agencia financiera contratada por Ascendant que preparó el prospecto de cotización de Ascendant. Dicho prospecto advertía que existía un “potencial para intensificar más la violencia” si se continuaran las operaciones de exploración de minerales. La TSX pasó por alto estas alertas específicas, cotizó la compañía en su bolsa, y pronto los fondos fluyeron para pagar a los hombres armados y violentos que actuaron ilegalmente en un camino comunitario del bosque nublado de Intag.

Según las leyes canadienses, cualquier persona que emprenda una actividad, incluyendo una corporación como la TSX, deben “tomar precauciones razonables para evitar un comportamiento que pudiera acarrear un riesgo irrazonable de daños a terceros”1. Si alguien no toma estas precauciones, y su conducta produce daños, deberá pagar una indemnización por los daños causados.

Marcia, Israel y Polibio alegan en su demanda que la TSX tenía un deber legal bajo las leyes de Canadá de dejar de proveer ayuda financiera a una compañía como Copper Mesa donde existía un riesgo previsible de que los fondos recaudados en la Bolsa sean utilizados para perjudicar a los individuos en lugares como el Ecuador. En otras palabras, la TSX tenía un deber legal de dejar de proveer acceso a asistencia financiera sin tomar las medidas precautelarías de “diligencia debida” para reducir el riesgo de que los fondos recaudados a través de la Bolsa no sean utilizados para perjudicar a individuos como Marcia, Israel y Polibio. En esta demanda, los Demandantes hacen resaltar a algunos indicadores claros, conocidos por la TSX, que señalaban la existencia de un riesgo real de que dichos daños se pudieran producir.

Actualmente, la TSX no toma medida alguna para ayudar a evitar la posibilidad de que los fondos recaudados en sus bolsas causen daños reales a individuos en el extranjero. La TSX actualmente no tiene ninguna política implementada que evitara que la bolsa cotice a una compañía que tuviera una probabilidad – o aun la certeza – de utilizar los fondos recaudados para instigar violencia y abusos de derechos humanos en comunidades locales en el extranjero.

En el caso de Copper Mesa, la TSX proporcionó un medio para que la corporación tenga acceso a millones de dólares de nuevo capital financiero, con el cual la compañía minera pudo continuar y ampliar su campaña a control remoto, de temor e intimidación, y con el cual pudo contratar y, de hecho, contrató las fuerzas de seguridad violentas que agredieron a Marcia, Israel y Polibio.

Los Demandantes no están sugiriendo que la Bolsa de Valores de Toronto sea responsabilizada por todas y cada una de las acciones de las compañías que la TSX decide cotizar. Sin embargo, los Demandantes afirman que la TSX debe tomar medidas razonables para evitar que las grandes cantidades de capital que se recaudan en la TSX sean utilizadas para causar serios daños a individuos y comunidades en lugares como el Valle de Intag en Ecuador, donde el alto riesgo de dichos daños sea conocido o claro.

Demanda contra los miembros de la junta directiva de Copper Mesa

Por otra parte, la demanda alega que los miembros de la junta directiva de Copper Mesa tienen el deber de evitar una conducta que produzca el riesgo previsible de daños a los individuos y comunidades ubicados dentro de las áreas de exploración de la compañía. Son los directores que tienen el control final sobre una corporación y son responsables bajo la ley por sus propias acciones y omisiones que ocurren durante el desempeño de sus funciones como directores.

En este caso, por lo menos algunos de los directores sabían personalmente acerca del uso perjudicial de fuerzas armadas de seguridad privada en Intag. En particular, se les había mostrado evidencia fotográfica de ataques violentos contra reuniones pacíficas perpetrados por las fuerzas contratadas por la compañía, y los directores fueron advertidos specíficamente acerca del alto riesgo de futuros actos de violencia.

A pesar de este conocimiento, los miembros de la junta de directores de la compañía siguieron operando la compañía de tal manera que se aumentara el riesgo de futuros actos de violencia. Aprobaron financiamiento adicional que fue utilizado para fuerzas de seguridad peligrosas. No tomaron ninguna medida significativa para reducir el riesgo de que en el futuro los agentes de la corporación, hicieran amenazas de daños físicos o utilizaran tácticas violentas. Como resultado de los actos y omisiones de los directores continuaron las amenazas y la violencia.

Los Demandantes no están diciendo que los directores corporativos sean responsables ni obligados personalmente por todos y cada uno de los actos de la corporación. Más bien, afirman que en los casos en que los directores de hecho tienen conocimiento personal de un riesgo real e irrazonable de daños a individuos, o que el riesgo sea fácil de percibir, su deber es no actuar de de una manera que perpetúe o aumente dicho riesgo, y deben tomar pasos para reducir el riesgo.

Demanda contra Copper Mesa Corporation

Uno de los defectos serios de los controles existentes sobre las compañías mineras canadienses que operan en el extranjero es que las compañías pueden repartir sus operaciones entre muchas jurisdicciones legales de tal manera que se eviten las leyes de rendición de cuentas en alguna jurisdicción en particular. Esto puede ocurrir mediante el uso de compañías subsidiarias, y a través de la incorporación en una jurisdicción, el establecimiento de oficinas principales de la compañía en otra, y tener sus operaciones efectivas en otra aun. Por ejemplo, Copper Mesa, a pesar de ser una compañía “junior” en fase de exploración, tiene vínculos en nueve jurisdicciones legales distintas, lo que hace difícil identificar la jurisdicción que sería la idónea para exigir que la corporación rinda cuentas.

En esta demanda, los Demandantes se han enfocado en las decisiones, acciones y omisiones de algunos de los principales tomadores de decisiones de la compañía, es decir, los directores, que han ocurrido en una jurisdicción provincial específica de Canadá (la provincia de Ontario). Al emplear leyes y principios existentes de esta manera enfocada, los Demandantes creen que tanto los directores como la compañía pueden ser responsabilizados, ya que la corporación es responsable legalmente de los agravios causados por las decisiones de sus directores.

Necesidad de reforma legal

Si bien los Demandantes buscan justicia bajo las reglas y principios existentes, también creen firmemente que hay una necesidad crítica de una reforma legislativa de las leyes existentes en Canadá, para hacer que en estas situaciones sea más clara, efectiva y consistente con nuestros valores humanos y ecológicos comunes, la rendición de cuentas de las corporaciones.

KLIPPENSTEINS
Barristers and Solicitors, Toronto, Ontario, Canadá
Abogados de Marcia Ramírez, Israel Pérez y Polibio Pérez

------------------------------

1 Este principio legal histórico se vuelve a enunciar en 2003 en un caso de la Corte Suprema de Canadá de Odhavji Estate vs. Woodhouse, [2003] 2 S.C.R. 263 en el párrafo 45.

Intag Activists to Sue Canadian Stock Exchange and Canadian company

2009-02-21T14:02:00.002-05:00

News from Intag 21 Februrary

99 days since Copper Mesa lost their concessions in Intag, AND,----

Community Leaders in Canada to Sue the Toronto Stock Exchange and a Canadian Mining Company

Marcia Ramirez and Carlos Zorrilla, community activists from the Intag area of Ecuador, will be visiting Canada from the 25th of February until the 7th of March as part of a tour to announce lawsuits against a Canadian mining company and the Toronto Stock Exchange.

Besides informing the public about the landmark lawsuits, the community members will be participating in York University's "Rethinking Extractive Industry: Regulation, Dispossession, and Emerging Claims", scheduled for March 5–7, 2009 at York University. They will also participate in the March 1st Toronto screening of Malcolm Rogge’s documentary film “Under Rich Earth”, which documents part of the struggle of the Intag people against mining development. Talks at several universities are also planned, including the University of Western Ontario, Huron, and York University.

They will be in Ottawa February 26 and 27th to meet with MiningWatch Canada and other human rights and environmental organizations working in the field of extractive industry and human rights. They also hope to meet with members of Parliament to sensitize them on the urgent need for the Canada to push through legislation to reign in Canadian mining companies overseas.

Marcia and Carlos, along with their lawyers from Klippensteins Barristers & Solicitors of Toronto, will be announcing the lawsuit against the Canadian mining company and the Toronto Stock Exchange for their alleged involvement in human rights abuses at a mining concession site in Ecuador. A press conference will be held in Toronto the week of March 2 by members of the affected Ecuadorian community."

TEN QUESTIONS YOU SHOULD ASK ABOUT COPPER MESA MINING CORPORATION

2009-01-02T16:08:00.003-05:00

TEN QUESTIONS YOU SHOULD ASK ABOUT COPPER MESA MINING CORPORATION

1. Q. Does the company have legal title to its much-touted JUNIN mining concessions in Ecuador?
A. NO. On November 12th, the government annulled the titles to the company’s Junin mining concessions as part of the government’s plans to recuperate thousands of mining concessions.. The company also lost titles to other
concessions in other parts of the country. The decision cannot be appealed.
http://www.minasypetroleos.gov.ec/mmp-portwar/faces/indexMinas.jspx
http://www.minasypetroleos.gov.ec/mmp-portwar/face/index.jspx;jsessionid=81f6cd11d6c990fafdc30340e691

2. Q. Does the company have as much copper and molybdenum at its Junin site as it claims it has on its web page?
A. NO. In 2007, Micon International, the company responsible for the inflated estimates of copper and molybdenum at the company’s Junin site, admitted it could not confirm its own estimates due to, among other factors, termite damage to the original core samples taken in the 1990’s by a Japanese firm. The company, however, still has this much higher figure on its web site.

3. Q. Has the company undertaken exploration activities in its JUNIN concessions?
A. NO. In spite of the millions of dollars the company claims it has spent on exploration at JUNIN, Copper Mesa Mining Corporation has not been able to undertake any exploratory activities whatsoever at its JUNIN mining concessions. The last exploration undertaken within the Junin mining concessions was in 1996 by Bishimetals. Bishimetals’ INFERRED Cu and Mo resources are a fraction of what Copper Mesa claims to have.

4. Q. Does the company have a valid Environmental Impact Study for exploration at its JUNIN site?
A. NO. The government refused to even process the company’s 2006 environmental study due to gross inadequacies Since then, the company has not presented a new study. But that hasn’t kept it from spending millions of dollars.

5. Q. Does the project have support from the local communities and government?
A. NO. There is no mining project in all of Latin America that has galvanized so much local government and community opposition. The communities have for years physically blocked access to the concessions, presented several lawsuits and constitutional injunctions to stop the project, and in 2005, burned down the company’s camp. In 2008, the County government of Cotacachi (where the Junin mining project is found) created an 18,000 hectare 45,000 acres) protected area which coincides with the area of the mining concessions.

6. Q. Is it true that the area where the minerals were found is rich in primary forests, harbors dozens of endangered animal species and is rich in archeological sites?
A. Yes. The area where Bishimetals discovered copper is covered in some of the most biologically diverse and threatened forest in the world, which is the habitat for jaguars, spectacled bears, the brown-faced spider monkey and over a dozen other protected species in facing extinction. Additionally, the area is extremely rich in pre-Incan archeological sites.

7. Q. Is it true the current national government is pro-mining?
A. NO. There are officials within the government, including President Correa, who have expressed openness to what he’s called “responsible mining”. However, many within the government are vehemently opposed to large-scale mining.

8. Q. Is it true the new mining legislation will make it easier for the company to reactivate its projects?
A. NO. The new mining legislation currently being debated in the equivalent of Congress contains higher than usual royalties, a 51% tax on profits, and tough social and environmental regulations. The law also will create a National Mining Corporation, which will undertake some of the more lucrative projects. Additionally, the law is more geared to supporting small-scale, and artisanal miners than the large transnational mining companies

9. Q. Is it true the company and/or its directors are being sued in Canada?
A. Good question for to ask the directors

10. Q. Do you really want to own shares of a company with this record?
A. ______________________

More Bad News for Copper Mesa: Company loses all of its Intag mining concessions.

2008-12-08T15:24:00.000-05:00

Espaniol abajo

More Bad News for Copper Mesa: Company loses all of its Intag mining concessions.
- The Mining Mandate also abolished hundreds of other concessions affecting many Canadian mining companies in Ecuader.

Close to 2,300 mining concessions affecting a total of 3.3 million hectares have been extinguished in Ecuador since the Mining Mandate went into effect more than six months ago (see original government news release below). This includes all of Copper Mesa Mining Corporation's concessions in Intag, according to information published by the Ministry of Mines and Energy.

The December 4th government news release reports 335 additional concessions affecting over 500 thousand hectares being abolished, and the government's willingness to keep applying the Mining Mandate to the rest of the country's mining concessions.
http://www.minasypetroleos.gov.ec/mmp-portwar/faces/index.jspx;jsessionid=81f6cd11d6c990fafdc30340e691

The mining concessions were extinguished, according to the information, because either they did not have their Environmental Impact Studies in order, or the companies never undertook the previous community consultation processes as specified in Ecuador's Constitution.

Copper Mesa’s Intag mining concessions, and specifically Golden 1, Golden 2 and Magdalena 1 were the jewel in the company’s crown. They, along the company’s other concessions in the region, are now in the government’s hands. The new law will put into play a whole new series of regulations, which will bring in much higher royalties, firmer environmental controls, and much more significant taxation for mining companies doing business in Ecuador. The measures affecting the concession is also seen as part of the government’s plan to institute the total or partial nationalization of the mining sector.

(original news release)
En el marco del cumplimiento del Mandato Minero, expedido por la Asamblea Nacional Constituyente en abril pasado, el Ministerio de Minas y Petroleos extinguió 514 855 nuevas hectáreas mineras, correspondientes a 335 concesiones, por no haber presentado estudios de impacto ambiental o no haber cumplido con el proceso de consulta previa.

Cincuenta y seis concesiones habían sido otorgadas a la empresa All Metals, 18 a la compañía Curimining , entre otras, las mismas que no cuentan con los términos de referencia ni los estudios de impacto ambiental para su aprobación.

El ministro de Minas y Petróleos, Ing. Derlis Palacios Guerrero, senialó que "conforme a lo dispuesto por la Asamblea Constituyente continuamos cumpliendo el Mandato Minero. Queremos que a la vigencia de la nueva Ley Minera tengamos ordenado y regularizado todo lo concerniente a las concesiones vigentes".

El Secretario de Estado dijo ademas: "estamos determinando una serie de arbitrariedades en el otorgamiento de las mismas; no podemos seguir con el caos actual. Definitivamente este proceso, sumado a la aprobación del proyecto de la nueva Ley de Minería, nos va a permitir a los ecuatorianos y ecuatorianas tener una mineria que se inserte en el desarrollo economico y social del país; seguiremos rindiendo cuentas de nuestra gestion".

De lo que va del proceso de reversion, el Gobierno de la Revolución Ciudadana ha extinguido y caducado cerca de 2 300 concesiones, con un total de 3 300 000 hectáreas.

El ministro Palacios Guerrero afirmó que el Mandato Minero continúa en vigencia y que su cumplimiento está en proceso.
http://www.minasypetroleos.gov.ec/mmp-portwar/faces/index.jspx;jsessionid=81f6cd11d6c990fafdc30340e691

Copper Mesa Loses 2 Concessions in Intag

2008-11-21T06:50:00.003-05:00

The government announced this week that Copper Mesa Mining Corporation had reverted back to the state the concessions Golden 1 and Golden 2 (http://www.eltelegrafo.com.ec/actualidad/noticia/archive/actualidad/2008/11/19/Gobierno-extingue-concesiones-mineras-de-_CD00_ntag.aspx and h
ttp://www.presidencia.gov.ec/noticias.asp?noid=16549

This is not a "purported" extinction of the comopany's mining rights; the legal measure is definitive. The government did not "make observations" to the company's 2006 Environmental Impact Assesement, it flatly rejected it, and termed it "not-prossesable". Had it been a case of responding to the observations, it would have done so long ago and re submitted it.

It is all over for Copper Mesa in Intag folks- definintely NOT purported.

IT'S ALL OVER FOR COPPER MESA MINING CORPORATION IN INTAG-

2008-11-13T13:59:00.000-05:00

IT'S ALL OVER FOR COPPER MESA MINING CORPORATION IN INTAG
(formerly Ascendant Copper Corporation)
Español más adelante

NOV 13 2008

On Wednesday, November 12th, Ecuador's Ministry of Mines and Petroleum officially extinguished Copper Mesa Corporation's Golden 1 mining concession in Intag, Ecuador. The Golden 1 concession formed a key part of the company’s JUNIN mining project, and constituted the company’s most valuable asset. The government measure means that the Golden 1 concession will revert back to the Ministry of Energy and Petroleum.

It is only a matter of time when the other two concessions making up the JUNIN project will be extinguished, in light that they also did not comply with the process of previous consultation with the community and likewise lack a valid environmental impact assessment, which were the basis for the government measure. In fact, not a single of the company’s project in the Intag region has complied with the process of community consultation, nor have a valid environmental impact assessment.

The decision was a direct result of the April 15th mining Mandate issued by the National Assembly, which extinguished most of the country's mining concessions. The Mandate excludes compensation of any kind for the mining companies.

According to government spokespersons over 4,000 mining concessions were affected by the Mandate. Projects in the exploitation phase were generally left alone, but nearly all of the ones in exploration phase were affected.

According to the new mining legislation being debated in the provisional National Assembly (the “mini-congress” as it is known here), no mining concessions can be awarded until the government determines the areas designated for mining activities in its National Development Plan, something that could last months or even years.

Copper Mesa and its predecessors (Ascendant Copper Corporation and Ascendant Exploration), have been in the Intag area since 2004, and have been accused of serious human rights abuses, including numerous and documented use of paramilitaries against the local population opposed to mining. Its unwelcome presence in the area provoked numerous violent confrontations, which led the government to issue several stop-work orders in late 2006 and early 2007.

The Second Transnational Mining Corporation Defeated in Intag
The communities of Intag, with the full support of all its local governments and organizations, have been resisting mining development since the 1990’s, when the Mitsubishi subsidiary, Bishimetals, discovered copper and molybdenum amidst the Toisan Range’s primary forests and pristine rivers and streams. In 1997 due to overwhelming local opposition, Bishimetals was forced to abandon the project.
ASCENDANT (COPPER MESA MINING CORPORATION) PIERDE CONCESIÓN CLAVE EN INTAG

El día miércoles 12 de noviembre, el Ministerio de Minas y Petróleo del Ecuador extinguió la concesión minera más importante de Copper Mesa Mining Corporation (Ascendant Copper) en la zona de Intag, Provincia de Imbabura, Ecuador.

La decisión revierte al estado las concesiones Golden 1 la cual forma parte del proyecto JUNÍN, que constituía el proyecto minero más valioso de la empresa. El gobierno citó la falta de la realización de la consulta previa por parte de la empresa, al igual la falta de haber realizado un estudio de impacto ambiental válido para el proyecto minero.

La decisión gubernamental fue resultado directo del Mandato Minero decretado el 15 de abril del 2008 por la Asamblea Nacional, con el cual se extinguió aproximadamente 80% de concesiones mineras en el país que no contaban con los respectivos estudios de impacto ambiental, por incumplimiento de pagos de patentes, afectaciones a micro cuencas, y otras causales.

El Mandato excluye la posibilidad de que las empresas reciban indemnizaciones.

Según pronunciamientos oficiales, más de 4.000 concesiones fueron afectadas por el Mandato. Los proyectos en fase de explotación en general no fueron afectados, pero casi todos los que se encontraban en fase de exploración,y en especial los que no contaban con sus respectivos estudios de impacto ambientales, entraron dentro de las concesiones a ser revertidas al estado. Hasta la fecha, aproximadamente 2,000 concesiones han sido revertidas por incumplir con las disposiciones del Mandato.

De acuerdo a la nueva legislación minera elaborada por el gobierno del Presidente Correa, no se podrá otorgar nuevas concesiones mineras hasta que el país elabore su Plan de Desarrollo Nacional, y designe las áreas aptas para actividades mineras- un proceso que podría durar meses, o incluso, años.

Ascendant Copper, la cual cambió su nombre a Copper Mesa Mining Corporation en Julio de este año, ha estado en la zona de Intag desde Mayo del 2004, y su presencia ha estado vinculada a graves violaciones de derechos humanos, enfrentamientos violentos entre comuneros, y la utilización de paramilitares contra campesinas y campesinos opositores a la minería. La violencia y la presencia de paramilitares en la zona provocó que el gobierno suspenda las actividades de la empresa transnacional a fines del 2006, y de nuevo en el 2007.

Puestos de trabajo
La empresa ha sido acusada de emplear a cientos de trabajadores agrícolas de Intag como estrategia de dividir a las comunidades, ya que la empresa nunca obtuvo la aprobación del estudio de impacto ambiental por parte del gobierno, lo cual es un requisito indispensable para iniciar labores mineras.

Las comunidades de Intag han librado una resistencia pacífica contra la minería desde mediados de los 90 cuando Bishimetals, subsidiaria de la empresa Mitsubishi, halló un yacimiento de cobre y molibdeno en medio de bosques primarios y ríos prístinos de la Cordillera del Toisán. El proyecto fue financiado por la Agencia Japonesa para la Cooperación Internacional (JICA por sus siglos en ingles) y ejecutado juntamente con apoyo del gobierno nacional a través de CODIGEM, una dependencia del Ministerio de Minas y Petróleo del Ecuador. El proyecto bi-nacional tuvo que ser abandonado en 1997 después de que las comunidades de Intag

NEW REGULATIONS FOR MINING IN ECUADOR/ Copper Mesa's Troubles in Ecuador

2008-11-11T19:53:00.003-05:00

Copper Mesa and Its Troubles in Ecuador

Tougher Regulations for Mining in Ecuador (Nov 2008)

On Monday, November 10 2008, the El Comercio Newspaper (second biggest in Ecuadoro) carried a story highlighting tougher new fiscal and environmental regulations proposed in the new mining law for mining companies working in Ecuador, including a minimum 5% royalty; clauses to close down a mine for environmental damage, and higher taxes (The Constitution mandates the equivlalent of a 51% income tax on all extractive industries).

http://www.elcomercio.com/noticiaEC.asp?id_noticia=235247&id_seccion=6

COPPER MESA MINING CORPORATION AND ITS TROUBLES IN ECUADOR

Copper Mesa Mining Corporation (ex Ascendant Copper Corporation) continues to make light of very serious problems it is facing with its Ecuadorian mining project. These are the facts:

On 19 September, the company announced that:

That it has received confirmation from the National Director of Mines ("NDM") that both the Golden 1 and Golden 2 concessions, which comprise the important Junin copper-molybdenum prospect in the Imbabura Province of Ecuador, are to be reinstated to the Company

DECOIN reported two months back that the government had turned down a request from the Ministry of Mines to annul the concessions based on a constitutional issue.

The more serious issue of the validity of the company's concessions is more closely related to the April 2008 Mining Mandate (see below), by which the equivalent of Ecuador´s Congress annulled more than 4,000 mining concessions- including- according to government officials- all of the company's concessions in Intag- Golden 1 and 2 inclusive. SEE BELOW FOR MORE DETAILS

On August 2008, the Municipality of Cotacachi, where Copper Mesa´s Junin mining concessions are found created an 18,009 hectare protected area right over most of Copper Mesa´s concessions. Mining is prohibited in the protected area.Constitution and Mining- Article 208 of Ecuador´s newly drafted Constitution, obligates the country to take NOT LESS than 50% of the benefits, or profits, gained from the exploitation of the country’s mineral resources. In other words, the automatic tax on mining earnings will be at least 50%, and it does not include other taxes, such as corporate tax, the 15% they must share with their workforce, and other taxes the new law may impose, such as windfall tax. Given all these taxes on mineral extraction, corporate taxes may end up being over 75%.. The referendum for the approval of the Constitution was held on Sept 28 and the Constitution approved approved.

There are many other reasons why the JUNIN mining project will never go forth in Intag, including the extraordinary biological importance where the copper deposit is located (primary forests home to dozens of endangered species), the illegality of mining in archeological areas, the unique opposition by local governments and communities (unanimous opposition), the human rights violations linked to the company’s presence, the lawsuits presented in Canada, to mention just a few of the issues discussed in details below.

Validity of the concessions and the Mining Mandate. In the past DECOIN has put in doubt the validity of the company’s concessions. In April of 2008, the equivalent of the country’s Congress emitted the Mining Mandate, annulling over 4,000 mining concessions, or approximately 80% of the mining concessions in the country. This, according to government officials, includes all of Copper Mesa’s concessions in Intag.

Estimate at the Junin site. The Estimate, was nearly FOUR TIMES LARGER than what years of Japanese exploration work at the site uncovered (total only of 2.2 million tons of copper of possible reserves, but the reserves have never been proven) The last exploration taking place in the Junin mining concessions were in 1996.

TRUE MAGNITUDE OF RESERVES: Questions surrounding the company’s real assets: IN 2007, Micon International, publicly admitted that due to termite damage and other factors IT COULD NOT CONFIRM ITS EARLIER COPPER

Loss of 17 Properties. Something else the company "forgot" to tell its investors was that in 2007, the government abolish 17 of the company’s properties around the Junin mining site

STOP WORK ORDER. On December 19th 2006, the company incorrectly told the public that the government had not ordered it to stop its activities within the Junin project concessions. Yet, the document from the Ministry of Energy and Mines dated December 8 th 2006 plainly asked the company to stop its activities, until its Environmental Impact Study was approved, a process that could take many months or a year to complete. It’s important to highlight that the Ministry did not limit the stop-work order to just mining activities. This drastic step was taken principally because of the environment of violence and terror generated when The company Cooper’s contractor, Falericorp--financed by Copper Mesa Mining Corporation--hired armed personnel to force their way, with guns and tear gas, into Copper Mesa's concessions. They were unsuccessful. The company has falsely claimed Falericorp is an agricultural company; in reality it sells communication equipment. The use of armed thugs and violence turned the press and public against the company. It also shattered virtually all the support the company had within the government, Intag and the rest of the country.

LOCAL OPPOSITION. One of the most troubling aspects about The company’s distortion of information is how it has kept from Canadian regulators and its investors the facts about the nature of the local opposition it faces. The company has continually claimed that it is just a few radical people—"ecoterrorists" in their parlance--and mainly one local organization, DECOIN, that oppose its project. Yet every single Township government in the Intag region, both Cotacachi County and the Provincial governments, not to mention most communities within and adjacent to the company’s mining concessions, have publicly expressed their opposition to the mining project. This makes local government opposition unanimous, something seldom achieved in Ecuador’s history of resistance to mining. In addition, approximately 90% of the NGOs working in Intag and Cotacachi County (where the Junin project is located) also have expressed their opposition.

This violence came on the heels of the October 17 th pre-dawn raid to the home of a well-known anti-mining activist by nineteen heavily armed police. The police came bearing arrest and search warrants as a result of completely trumped-up robbery charges made by someone supposedly working for The company. They came in unmarked cars, some of which were identified as belonging to the company.

Land purchases. Many of the properties The company purchased around the Junin site are illegal, either because the company bought land that is supposed to be used exclusively for agricultural purposes, they lie within protected forests (Chontal), or because government entities illegally adjudicated state land within mining concessions. Already several land titles have been declared invalid in this area and the authorities and in total, in 2007 the company lost 17 of its properties for irregularities linked to the transnactions, something which was never reported to its stockholders.

Although DECOIN has been unable to confirm the persistent reports of kickbacks involving land deals, it is a very well known fact that The company has paid up to 30 times the real worth of properties, and purchased some outside the mining concessions.

The Environmental Impact Study. The company’snews releases have repeatedly stated that the EIS was finished, had been presented to the government, and that approval was expected in a matter of weeks (in the company’s 2005 annual report it stated that it had completed the EIS, and that it would be submitted in April of 2005 [it is interesting, to say the least, that the Terms of Reference for the EIS was approved in June 2006!!]) Yet, in the June 2006 Financial Statement the company stated that the EIS had not yet been submitted. On December 8, 2006, the Ministry of Energy and Mines informed The company’s Ecuador General Manager that their Junin Environmental Impact Study was so flawed that they were unable even to process it. They pointed out, among other things, that the company had not socialized its content with communities most at risk.

The government stated in an official letter to Ascendant, will have to comply with (tough newly created) regulations controlling the consultation process with the communities.If done properly, an EIS can take months and hundreds of thousands of dollars to complete. With the change in government, there will be new officials in the Ministry of Energy and Mines who will be more stringent in seeking complete compliance. No more friends in High Places for the company. It is also certain that the new progressive government will annul many of the country’s mining concessions, granted after Ecuador’s 1998 Constitution came into effect, which required communities to be previously consulted.

ECOLOGICAL, SOCIAL, ARCHEOLOGICAL AND OTHER FACTORS. The Junin mining project is adjacent to two legally protected areas: the Chontal Bosque Protector, and the Cotacachi-Cayapas Wilderness Area. In spite of what The company has been saying, most of the concessions encompass PRIMARY cloud forests, which are part of the Tropical Andes Biological Hotspot, the hottest of all Hotspots. The threatened forests protect dozens of pristine streams and rivers, are home to dozens of endangered mammal, amphibian, bird and plant species. These include Jaguars, Ocelots, Spectacled Bears, Pumas, the critically endangered Brown-headed Spider Monkey, and Plate-billed Mountain Toucan, to mention only some of the most prominent. The threat to the spider monkey, which requires mature forests, constitutes a major obstacle to the project, as was highlighted in the scientific work at the nearby Los Cedros Biologial Reserve in 2006.After reviewing all the information regarding the project’s environmental impacts, our organization concluded that there is no other mining project in the world that threatens so many endangered species.

ECOLOGICAL ORDINANCE. In April of 2000, Cotacachi County, where Copper Mesa’s Junin concessions are located, created a strict environmental ordinance that prohibits activities that threaten the County’s native forests, or to contaminate its water resources with heavy metals, such as The company’s project threaten to do. Social Impacts. The earlier Japanese Environmental Impact Study carried out for the Junin mining project, and based on four years of drilling, and a small portion of the total of the 2.3 million tons of copper they inferred they discovered, called for the relocation of four communities to make room for the mine (this is nearly 4X less than The company’s estimate) All of these communities oppose the mining project, and they have stated they will not relocate peacefully.

ARCHEOLOGY. Parts of the mining area are rich in pre-Incan archeological sites--including earthen pyramids and thousands of tombs. This was confirmed in The company’s own Environmental Impact Study. What possibly The company has kept from you is that Ecuadorian law prohibits mining in archeological areas.

FUTURE CHANGES TO THE MINING LAW. For mining companies doing business overseas, modifications to mining legislation can be a company’s worse nightmare (this already occurred, see beginning of article). The recent violence surrounding Canadian mining companies in Ecuador--including the violence of armed groups in Junin financed by The company--not only shocked the nation, but led government officials to propose major changes to Ecuador’s mining legislation (see above) The proposed new mining law, soon to be submitted for approval, is starkly different than the current law, and is by far the toughest mining legislation in the continent.

FINANCIAL ISSUES. If you still feel this is a viable project and company, consider the following: The company has raised over 20 million dollars since its creation in 2004 (more counting Ascendant Exploration), with little to show by way of positive accomplishment. The company’s March 31 st 2006 first quarter report stated that "The Company currently has approximately US $5 million earmarked this year for a 22 hole, 15,000 meter, drilling program for Junin once the EIS process is complete….." (*see above for EIS irregularities)The report further noted that The work program will concentrate on the exploration and development of the Junin property . Maintenance fees will be paid and the Chaucha concession will be maintained in good order (p. 10; Outlook Section- bold mine) As pointed out earlier, Copper Mesa has not drilled a single meter in the Junin site as part of its suppossed exploration program.

An investor might well question where the millions supposedly spent in exploration ended up.

Perhaps they went here.

Copper Mesa officials has carried out several questionable deals with other directors, either hiring them or their companies directly for management support or the like, or buying mining concessions outright on The company’s home turf from companies owned by common directors. For example, on May 10th of 2006, The company purchased the Magdalena mining property from Ascension Gold, a company partly owned by Paul Grist, for $ 25,000, and ceded a 2% net smelter royalty fee for Ascension. Grist was one of The company’s directors at the time of the transaction. Had the company itself done the concession paperwork, it would have cost a fraction of what was paid, and it would not have had to give up any royalty rights. In most parts of the world, these kind of deals would likely qualify as conflict of interest. Perhaps it helps that The company’s quarterly financial statements are unaudited.

Investors should also take note of the guesswork involved in Junin’s inferred mineral deposit.

Under Canadian law, a ‘Qualified Person’ is obliged to undertake a site visit when preparing the technical report to determine a mining property’s inferred mineral deposit. In the case of the Junin property, the visit was to determine the amount of the inferred copper and molybdenum deposit. However, in a letter dated July 12, 2006 The company’s CEO admitted to the Canadian Ambassador that the company had, to date, been unable to access its "legally-owned concessions" in the Intag region (the Junin property) Yet the supposed site visit, an obligatory part of the appraisal of the mineral deposit, allegedly took place more than a year prior to the letter being written.

As stated earlier, Micon Internantional said in 2007 that due to damage to the core samples, they could no longer confirm their estimates.

In 2006, based on the above information, the Canadian Environmental Law Association presented a claim to the Ontario Securities Commission. The results of the ongoing investigation could seriously undermine the inferred amount of minerals at the Junin property. Risky Business? In June of 2006, RAB CAPITAL (UK) sold all of its 2.3 million The company shares (amounting to 11.8% of The company’s shares) The question begs itself: which one of the multitude of risk factors finally forced the prestigious investment firm to rid itself of The company’s investments.

The above is only a sampling of the abundant examples of troubling financial information coming out of The company. We hope it’s enough to motivate you to ask Copper Mesa a few tough questions. Prepared by DECOIN, Defensa y Conservación Ecológica de Intag, January 1, 2007 For additional information, please see: wwww.decoin.org, miningwatch.ca; the ascendantalert.ca, intagsolidarity.org, the companycopper.com, and sedar.comsedar.com

Copper Mesa Mining and Its Troubles in Ecuador

2008-09-18T18:18:00.003-05:00

COPPER MESA MINING CORPORATION AND ITS TROUBLES IN ECUADOR

Copper Mesa Mining Corporation (ex The compnay Copper Corporation) continues to make light of very serious problems it is facing with its Ecuadorian mining project. These are the facts:

On 19 September, the company announced that:

That it has received confirmation from the National Director of Mines ("NDM") that
both the Golden 1 and Golden 2 concessions, which comprise the important Junin
copper-molybdenum prospect in the Imbabura Province of Ecuador, are to be
reinstated to the Company

DECOIN reported 2 months back that the government had turned down a request from  the Ministry of Mines
to annul the concessions based on a constitutional issue. 
The more serious issue of the validity of the company's concessions is more related to the April 2008
 Mining Mandate (see below), by which the equivalent of Ecuador´s Congressannulled more than 4,000
mining concessions- including- according to government officials- all of the company's concessions in Intag-
Golden 1 and 2 inclusive.  SEE BELOW FOR MORE DETAILS

As of August 2008, the Municipality of Cotacachi, where Copper Mesa´s Junin mining concessions are found created an 18,009 hectare protected area right over most of Copper Mesa´s concessions. Mining is prohibited in the protected area.Constitution and Mining- Article 208 of Ecuador´s newly drafted Constitution, obligates the country to take NOT LESS than 50% of the benefits, or profits, gained from the exploitation of the country’s mineral resources. In other words, the automatic tax on mining earnings will be at least 50%, and it does not include other taxes, such as corporate tax, the 15% they must share with their workforce, and other taxes the new law may impose, such as windfall tax. Given all these taxes on mineral extraction, corporate taxes may end up being over 75%.. The referendum for the approval of the Constitution will be held Sept 28, and all analysts agree that it will be approved.

2007. Early in the year, the government ordered the company to stop work in the Intag area, telling the company the concessions were annulled. The company told its investors that the government had purported to annul the concessions.
Lost of 17 Properties. Something else the company "forgot" to tell its investors was that in 2007, the government abolish 17 of the company’s properties around the Junin mining siteThe Constitution of Ecuador makes it mandatory for the state to consult with communities before it makes decisions that could impact the communities’ environment. Since this constitutional mandate was not observed prior to the government issuing the mining concessions, the concessions are unquestionably unconstitutional. It is only a matter of time before they are so declared.
S

TOP WORK ORDER. On December 19th 2006, the company incorrectly told the public that the government had not ordered it to stop its activities within the Junin project concessions. Yet, the document from the Ministry of Energy and Mines dated December 8 th 2006 plainly asked the company to stop itsactivities, until its Environmental Impact Study was approved, a process that could take many months or a year to complete. It’s important to highlight that the Ministry did not limit the stop-work order to just mining activities. This drastic step was taken principally because of the environment of violence and terror generated when The compnay Cooper’s contractor, Falericorp--financed by The compnay Copper Corporation--hired armed personnel to force their way, with guns and tear gas, into The compnay’s concessions. They were unsuccessful. The compnay has falsely claimed Falericorp is an agricultural company; in reality it sells communication equipment. The use of armed thugs and violence turned the press and public against the company. It also shattered virtually all the support the company had within the government, Intag and the rest of the country.

LOCAL OPPOSITION. One of the most troubling aspects about The compnay’s distortion of information is how it has kept from Canadian regulators and its investors the facts about the nature of the local opposition it faces. The compnay has continually claimed that it is just a few radical people—"ecoterrorists" in their parlance--and mainly one local organization, DECOIN, that oppose its project. Yet every single Township government in the Intag region, both Cotacachi County and the Provincial governments, not to mention most communities within and adjacent to the company’s mining concessions, have publicly expressed their opposition to the mining project. This makes local government opposition unanimous, something seldom achieved in Ecuador’s history of resistance to mining. In addition, approximately 90% of the NGOs working in Intag and Cotacachi County (where the Junin project is located) also have expressed their opposition.

VIOLENCE. One of the central themes of the company’s misinformation campaign is to lay blame on anti-mining forces for the violence in Intag. It was the company, however, through its contractor Falericorp, that in November used tear gas against defenseless local people. It was also The compnay that hired an army helicopter and financed the hiring of the armed military and ex-military personnel who tried unsuccessfully to storm the company’s concessions on December 2 nd of this year. And it was pro-mining forces, allegedly led by several The company employees, who, on the 6 th of December 2006, threw stones, Molotov cocktails and burning tires and fired shots at a anti-mining group. These were directed at the Mayor of Cotacachi and the Governor of the province of Imbabura, who, together with journalists and a large anti-mining group, were trying to reach the community of Junin.
This violence came on top of the October 17 th pre-dawn raid to the home of a well-known anti-mining activist by nineteen heavily armed police. The police came bearing arrest and search warrants as a result of completely trumped-up robbery charges made by someone supposedly working for The compnay. They came in unmarked cars, some of which were identified as belonging to the company.

As a result of actions such as the above, national and international human rights bodies, including the UN High Commissioner for Human Rights, Amnesty International and Global Witness, looked into and reported on the violence and human rights violations affecting individuals and organizations opposed to The compnay’s project in Intag.
Land purchases. Many of the properties The compnay purchased around the Junin site are illegal, either because the company bought land that is supposed to be used exclusively for agricultural purposes, they lie within protected forests (Chontal), or because government entities illegally adjudicated state land within mining concessions. Already several land titles have been declared invalid in this area and the authorities and in total, in 2007 the company lost 17 of its properties for irregularities linked to the transnactions.

Although DECOIN has been unable to confirm the persistent reports of kickbacks involving land deals, it is a very well known fact that The compnay has paid up to 30 times the real worth of properties, and purchased some outside the mining concessions.

The Environmental Impact Study. The compnay’s publicity news releases have repeatedly stated that the EIS was finished, had been presented to the government, and that approval was expected in a matter of weeks (in the company’s 2005 annual report it stated that it had completed the EIS, and that it would be submitted in Ap ril of 2005 [it is interesting, to say the least, that the Terms of Reference for the EIS was approved in June 2006!!]) Yet, in the June 2006 Financial Statement the company stated that the EIS had not yet been submitted. On December 8, 2006, the Ministry of Energy and Mines informed The compnay’s Ecuador General Manager that their Junin Environmental Impact Study was so flawed that they were unable even to process it. They pointed out, among other things, that the company had not socialized its content with communities most at risk. The company, they stated, will have to comply with (tough newly created) regulations controlling the consultation process with the communities.If done properly, an EIS can take months and hundreds of thousands of dollars to complete. With the change in government, there will be new officials in the Ministry of Energy and Mines who will be more stringent in seeking complete compliance. No more friends in High Places for the company. It is also certain that the new progressive government will annul many of the country’s mining concessions, granted after Ecuador’s 1998 Constitution came into effect, which requires communities to be previously consulted.

ECOLOGICAL, SOCIAL, ARCHEOLOGICAL AND OTHER FACTORS. The Junin mining project is adjacent to two legally protected areas: the Chontal Bosque Protector, and the Cotacachi-Cayapas Wilderness Area. In spite of what The compnay has been saying, most of the concessions encompass PRIMARY cloud forests, which are part of the Tropical Andes Biological Hotspot, the hottest of all Hotspots. The threatened forests protect dozens of pristine streams and rivers, are home to dozens of endangered mammal, amphibian, bird and plant species. These include Jaguars, Ocelots, Spectacled Bears, Pumas, the critically endangered Brown-headed Spider Monkey, and Plate-billed Mountain Toucan, to mention only some of the most prominent. The threat to the spider monkey, which requires mature forests, constitutes a major obstacle to the project, as was highlighted in the scientific work at the nearby Los Cedros Biologial Reserve in 2006.After reviewing all the information regarding the project’s environmental impacts, our organization concluded that there is no other mining project in the world that threatens so many endangered species.

ECOLOGICAL ORDINANCE. In April of 2000, Cotacachi County, where the The compnay’s concessions are located, created a strict environmental ordinance that prohibits activities that threaten the County’s native forests, or to contaminate its water resources with heavy metals, such as The compnay’s project threaten to do. Social Impacts. The earlier Japanese Environmental Impact Study carried out for the Junin mining project, and based on four years of drilling, and a small portion of the total of the 2.3 million tons of copper they inferred they discovered, called for the relocation of four communities to make room for the mine (this is nearly 4X less than The compnay’s estimate) All of these communities oppose the mining project, and they have stated they will not relocate peacefully.

ARCHEOLOGY. Parts of the mining area are rich in pre-Incan archeological sites--including earthen pyramids and thousands of tombs. This was confirmed in The compnay’s own Environmental Impact Study. What possibly The compnay has kept from you is that Ecuadorian law prohibits mining in archeological areas.

FUTURE CHANGES TO THE MINING LAW. For mining companies doing business overseas, modifications to mining legislation can be a company’s worse nightmare. The recent violence surrounding Canadian mining companies in Ecuador--including the violence of armed groups in Junin financed by The compnay--not only shocked the nation, but led government officials to propose major changes to Ecuador’s mining legislation. The press has pointed out the serious flaws in the law that makes mining highly injurious to Ecuador’s national interests. A complete overhaul of the law is expected, which will do away with many of the pro-industry incentives that have made mining so attractive for the industry.

FINANCIAL ISSUES. If you still feel this is a viable project and company, consider the following:The compnay has raised approximately 20 million dollars since its creation 30 months ago, with little to show by way of positive accomplishment.The company’s March 31 st 2006 first quarter report stated that "The Company currently has approximately US $5 million earmarked this year for a 22 hole, 15,000 meter, drilling program for Junin once the EIS process is complete….." (*see above for EIS irregularities)The report further noted that The work program will concentrate on the exploration and development of the Junin property . Maintenance fees will be paid and the Chaucha concession will be maintained in good order (p. 10; Outlook Section- bold mine)
The Company’s short-term objective is to gain access to the Junin property for commencement of exploration, through exploration to upgrade the existing inferred resource and demonstrate continuity of grade, to complete a pre-feasibility study to determine if the project is economically viable and, if warranted, prepare further work programs leading to completion of a bankable feasibility study on the project ( this same paragraph was repeated identically in the June 30 th 2006, and earlier Financial (and Unaudited) Reports)(Taken from: Management’s Discussion and Analysis For the Three Months Ended March 31, 2006; and for June 2006)Although came and went, The Environmental Impact Study has not been approved (nor has it any real prospect for approval). The compnay has not been able to gain access to the Junin property (not even at gunpoint) There has been no exploration at the Junin property No pre-feasibility study has been carried out.
An investor might well question where the 5 million, or the other millions, went. Perhaps it went here. The compnay Copper has carried out several questionable deals with other directors, either hiring them or their companies directly for management support or the like, or buying mining concessions outright on The compnay’s home turf from companies owned by common directors. For example, on May 10th of 2006, The compnay purchased the Magdalena mining property from Ascension Gold, a company partly owned by Paul Grist, for $ 25,000, and ceded a 2% net smelter royalty fee for Ascension. Grist was one of The compnay’s directors at the time of the transaction. Had the company itself done the concession paperwork, it would have cost a fraction of what was paid, and it would not have had to give up any royalty rights. In most parts of the world, these kind of deals would likely qualify as conflict of interest. Perhaps it helps that The compnay’s quarterly financial statements are unaudited. Investors should also take note of the guesswork involved in Junin’s inferred mineral deposit.

Under Canadian law, a ‘Qualified Person’ is obliged to undertake a site visit when preparing the technical report to determine a mining property’s inferred mineral deposit. In the case of the Junin property, the visit was to determine the amount of the inferred copper and molybdenum deposit. However, in a letter dated July 12, 2006 The compnay’s CEO admitted to the Canadian Ambassador that the company had, to date, been unable to access its "legally-owned concessions" in the Intag region (the Junin property) Yet the supposed site visit, an obligatory part of the appraisal of the mineral deposit, allegedly took place more than a year prior to the letter being written.
In 2006, based on the above information, the Canadian Environmental Law Association presented a claim to the Ontario Securities Commission. The results of the ongoing investigation could seriously undermine the inferred amount of minerals at the Junin property. Risky Business? In June of 2006, RAB CAPITAL (UK) sold all of its 2.3 million The compnay shares (amounting to 11.8% of The compnay’s shares) The question begs itself: which one of the multitude of risk factors finally forced the prestigious investment firm to rid itself of The compnay’s investments.

IN 2007, Micon admitted that due to termite damage and other factors IT COULD NOT CONFIRM ITS EARLIER COPPER ESTIMATE AT THE JUNIN SITE
The above is only a sampling of the abundant examples of troubling financial information coming out of The compnay. We hope it’s enough to motivate you to ask Copper Mesa a few tough questions. Prepared by DECOIN, Defensa y Conservación Ecológica de Intag, January 1, 2007 For additional information, please see: wwww.decoin.org, miningwatch.ca; the compnayalert.ca, intagsolidarity.org, the compnaycopper.com, and sedar.comsedar.com

NEW PROTECTED AREA IN JUNIN AREA- Nueva area protegia en área de junin

2008-08-21T08:43:00.003-05:00

espaniol abajo
On August 18 the County government of Cotacachi unanimously approved a new Ordinance creating the County's first municipal protected area encompassing 18, 000 hectares pristine micro watersheds and primary and seconary forests harboring dozens of threatened species, incluing the critically endangered brow-faced spider monkey, jaguars, and Spectacled Beas. The protected area include significant amounts of the area under Copper Mesa Mining Corporation's Golden 1 and 2 concessions, which were reverted to the Ecuadorian government earlier this year. The municipal area includes the 1,500 hectares forest reserve managed by the community of Junin for its ecotourism activities since 1997. Ecuador´s current Constitution gives local governments the right to create protected areas.

The protected area will be managed by the different communties, and no activities that may degrade water, forests or biodiversity will be allowed, including mining.

El 18 de agosto, el gobierno municipal d Cotacachi unanimamente aprovo una nueva ordenanza creando su primera area protegida municipal, la cual abarca 18,000 hectareas que protegen micro cuencas pristinas, bosques primarios y secundarios y el habitat de decenas de especies de animales en peligro de extincion, incluyendo jaguares, osos de anteojos y el criticamente amenazado mono arana cabeci-café. La area cubre una buena parte del area minera de Copper Mesa Mining Corporation (Ascendant Copper) del proyecto JUNIN, y también abarca las 1,500 hectáreas manejadas por la comunidad de Junin como parte de su proyecto de turismo comunitario desde 1997. La Constitución actual le da el derecho a los gobiernos locales de crear sus propias areas protegidas.

La area protegida sera maneajada por las comunidades, y no se permitira actividades que degraden el agua, los bosques o la biodiversidad, incluyendo la minería

Too Late for Copper Mesa / Those Pesky obstacles

2008-08-06T15:32:00.003-05:00

Ascendant’s new name; Copper Mesa Mining Corp
The Constitutional Tribunal rules- too late- in favor of Ascendant.
Lawsuit against Carlos Zorrilla declared illegal and malicious;
Upcoming lawsuit in Canada

In the last few years, the shares of Copper Mesa Mining Corp (formerly Ascendant Copper Corporation) have lost approximately 94% of their value, so it was only a matter of time before they would try to change their name, which is what they announced on June 27th (a decision apparently taken by a tiny percentage of its shareholders- most of them company officers).

The proposed new name is Copper Mesa Mining Corp. The company is waiting for regulatory approval.(http://www.canadanewswire.ca/en/releases/archive/June2008/27/c8603.html.If they are dreaming the name-change will help “clean up their image” and to make it harder to link the company to its dark past here in Ecuador, or for its officers to avoid criminal lawsuits in Canada, they indeed are dreaming.

Constitutional Court rules- too late- in favor of Ascendant.
In July of 2008 DECOIN found out the constitutional court threw out the case presented last year by the Ministry of Mines and Petroleum against Ascendant’s mining concessions in Intag. However, the ruling will not, in the least, affect Ascendant’s loss of its concessions under the resolutions taken by the National Assembly in April of this year, which annulled 88% of Ecuador’s mining concessions. We believe that Ascendant and its subsidiaries will lose all of its concessions in the country in the coming weeks.

Lawsuit declared malicious.
On July of 2006, Leslie Brooke Chaplin, a US citizen, accused Carlos Zorrilla of theft, assault and other made up things, during a completely peaceful public event, and in which hundreds of anti-mining protesters participated (and which was also filmed and monitored by police). The false charges led to arrest and search warrants and a police raid on Mr. Zorrilla’s home, violating a surprising number of laws and basic human rights.The 19 heavily armed police failed to find Carlos, but did leave behind a gun and a probable drug substance meant to further incriminate him in other criminal lawsuits (which, indeed, resulted in another arrest warrant). On July 3rd of this year, the judge overseeing the case finally ruled that the charges WERE MALICIOUS AND RECKLESS.This is the legal definition of malicious lawsuit: involving malice; characterized by wicked or mischievous motives or intentions.“An act done maliciously is one that is wrongful and performed willfully or intentionally, and without legal justification”.In other words, made up to cause harm; false without legal grounds.

The ruling opens the way for Mr. Zorrilla to sue for libel and damages and to open a full-scale investigation to identify the company and/or individuals responsible for the orchestration and funding of this travesty of justice.This, by the way, is the same lawsuit in which Chaplin’s lawyer says he never met Leslie Brooke Chaplin and that his signature was forged on all the legal documents presented in the case. The lawyer is suing Chaplin for the equivalent of identity theft- an extremely serious criminal offense in Ecuador.

And, stay tuned for some earth-shaking news related to an upcoming lawsuit in Canada.

Those pesky other obstacles
Another look at Copper Mesa.Ascendant's 2008 First Quarter Reports and What the Company is Not Telling and MANY other Pesky Obstacles.

Loss of Concessions.In past economic reports, Copper Mesa officials do a great job of not admitting that the government basically took away their Junin mining concession (Golden 1 and Golden 2) This is what the company says in its latest financial report:"In late January 2008, Ascendant received notices from the Regional Director of Mines, Province of Pichincha, that purport to nullify two concessions, the Golden 1 and Golden 2, that form part of the Junin copper/molybdenum project in Ecuador on the basis that these concessions were granted unconstitutionally". The government didn't 'purport' to nullify the concessions- it nullified them, plain and clear.... AND legally. Whether a higher court or the Ministry rule otherwise in the future on appeal is totally besides the point. What the company should have told its investors was that their concessions were abolished but that they were negotiating with the government, appealing, begging, threatening to sue, etc.- anything but that the government purported to nullify their concessions. So, legally, right now they do not own Golden 1 nor Golden 2. And even with the latest ruling, the Mining Mandate (explained) below assures that the concessions will stay out of their hands.The Mining Mandate.

On prior releases, the company has given the impression that the Mining Mandate, approved by a 95-1 margin by the nation's Constituent Assembly on April of 2008, merely froze mining activities in the country. True enough, but the Mandate also abolished concessions rights - without recourse to payment- of 80% of the country's concessions- including Ascendant's and any other that: a) threatened water resources; b) was not up to date on its payments to the government; c) did not have an Environmental Impact Study approved, and it limits concessions to 3 concessions per company (including subsidiaries). This sure seems material in nature. The Mandate also called for the creation of a state mining company. Under the Mandate there is no guarantee whatsoever that the companies will recuperate their concessions once the new mining law is drafted. The law will set forth totally new conditions on which to grant mining concessions and approve mining activities, and they are bound to include payment of royalties, a high windfall profit tax, a higher income tax bracket for mining companies, much stricter social and environmental regulations, and a steep per-hectare registration fee. And, there's a very good chance the state-owned mining company will usurp the juiciest mining projects. The new law, by the way, cannot modify or be in conflict with the Mandate. According to recent (August 2008) Northern Miner article, the expected changes in the law do not bode well for mining companies in Ecuador.

Exploration? In Junin? The company has claimed on several occasions that it has spent money on exploring in the Junin concessions. This is patently false. The last exploration that took place in the Junin area was done by Bishimetals, back in 1996. In case there is any doubt about the above statement, Copper Mesa, formerly Ascendant Copper Corporation has not spent a single penny on exploratory activities in its Junin project. If you look back in the last of the company's finacial reports, you will find the company saying it has spent millions of dollars on this.

Below is the latest claim:The Company used $1,745,000 in operating activities during the three months ended March 31, 2008, primarily for general and administrative expenses and exploration costs relating to the Junin and Chaucha properties (emphasis mine)
The Problematic Junin Deposit (made more problematic by damn termites!!)On the latest report, the company makes reference to the Micon International's NI 43-101 report, which designated the Junin deposit to be four times larger than what the Japanese inferred through years of exploration. However, the company failed to inform the public in its latest report that Micon publicly said last year that it can no longer verify its claim, due to damage sustained to the original core samples by, among other factors, termite damage. If a company was, for some obscure reason, wanting to cover up misleading information it generated, this is a damn good way to do it (of course Decoin is not suggesting anything of the sort). The company also failed to inform the public that there a complaint was filed in Canada questioning the procedure used by Micon to assess Ascendant's Junin's mineral deposit.Loss of Properties.The company did not report the loss of 17 of its properties in the Junin area. The company permanently lost title to these lands, land which were sitting on top of the copper deposit, when the National Institute for Agrarian Development (INDA) legally abolished the company's ownership rights due to illegalities in the granting of the original land titles. Given that the company had said that part of their strategy to acquiring properties in the Junin area was to gain access to their concessions- this could constitute a material event.Those Pesky Obstacles.The obstacles listed above are just some of the many the company faces. For example, there is still the fact that most of the Junin concession is covered in primary cloud forests harboring dozens of threatened mammals, birds and amphibians (including the critically endangered brown-faced spider-monkey, jaguars, and spectacled bears). The area is also extremely rich in archeological sites. Under Ecuadorian law, mining in these areas is illegal.

Others include the fact that there is just not enough water in the site or adjacent areas to undertake a mining project the size envisioned by Ascendant; the long-standing opposition by local governments and communities, and of course, the fact that there is a County government law that prohibits mining in native forests! Not to mention that the area above the minerals is not only in primary and secondary native forests, but that it has been managed and occupied by the Junin Community since 1997 and forms part of its community tourism project!Then there was Telimbela.... And ChauchaWith nothing to show as far as real exploratory results, a mining mandate freezing all mining activities, no environmental impact study approved- nor likely in the near or mid-term future..... well, you get the picture. As for Chaucha:: no exploration can take place; and, if it hasn't already, the company may lose its concession. And wasn't it last year that the Chilean miner Antofagasta pulled out of the deal it had to develop this site because of very poor results?

Resumen: El juez penal sentenciO que la demanda presentada por Leslie Brooke Chaplin en Julio del 2006 por robo en contra de Carlos Zorrilla fue maliciosa y temeraria, abriendo el camino a que Carlos enjuicie penalmente a Chaplin y se pueda realizar una investigacion para dar con los responsables reales del montaje judicial en contra de Carlos.Mientras tanto, Ascedandt Copper esta tramitando un cambio de nombre a Copper Mesa Mining Company, despues de que sus acciones habrían perdido cerca del 95% de su valor inicial en los ultimos años...Y, el Tribunal Constitucional sentenciO que la demanda de inconstitucionalidad presentada por el Ministerio de Minas y Petróleo el año pasado en contra de las concesiones mineras de Ascendant en Intag no procede- una resolución muy tardía, ya que la empresa perdiO sus concesiones en Abril de este anio por via del Mandato Minero, el mismo que anulO el 88% de las concesiones en el país.

Copper Mesa Mining Corp / Ascendant Copper still distorting facts

2008-07-20T18:22:00.005-05:00

One thing is clear: Asscendant's name change hasn't affected the distortion of facts.

Below is a couple of excerpts from their brand new web page http://www.coppermesacorp.com/properties/south_america/junin/

Property claims... the company claims it owns the JUNIN mining concessions, but does not tell the public or potential investors that the Ecuadorian Government annulled 88% of the country's mining concessions, and that the company had to abandon the Intag area in early 2008

2 : Ascendant’s short-term objective is to gain access to the Junin property for commencement of exploration

The truth is that Ascendant Coppper / Copper Mesa Mining Corp doesn't even have an Environmental Impact Study approved. The last one turned in to the government was flatly rejected. THIS WAS IN 2006. They haven't submitted another one. Want to guess why?

The company has the following amusing heading :
signed exploration agreement with communities in 2006:
It would be great if the company would publish the alleged document. If they are referring to one signed in 2006 by an organization completely discredited by local authorities, not representative of anyone or anything, and the same organization which was offered 1 million per year if Ascendant got the go-ahead for exploration- then they are grasping at straws in the wind. Said document was annulled by the local government, and there is no agreement with the communities around the mining site. There is only rejection. And, if this wasn't enough, all local governments are continuing their rejection of mining in the area.

How much Copper really? What is really there? The company claims that its JUNIN concessions hold about 3-4 times more copper and Molybdenum , than what was INFERRED by a Mitsubishi subsidiary in the early 1990's after years of drilling (the last drilling taking place in JUNIN was in 1996). In 2007 Micon international, the outfit that created the higher estimate for Ascendant, said that it was unable to confirm its inferred amount. In the meantime, Ascendant has been telling the public and regulators that it has spent millions of dollars in exploration costs, even though Ascendant has not explored anything at all in its Junin mining concessions.

Why, if the "new" company is serious about working in Ecuador and being transparent with its investors, doesn't inform them on their web site that their titles are in serious trouble, that they in fact, have spent money on other things but exploration, that they lost 17 of their properties in and around the JUNIN area, and that their much higher inferred estimate of the mineral deposit may be incorrect? Why do they not update their site and the information and start reporting real facts? The only conclusion must be that though the name changed, everything else remains the same.

More next week on a very important event in Canada.

Copper Mesa Mining Corp: What's behind a name?

2008-07-20T16:24:00.002-05:00

resumen mas adelante
Latest from Intag:
Ascendant’s new name; Copper Mesa Mining Corp
Lawsuit against Carlos Zorrilla declared illegal and malicious;
The Constitutional Tribunal rules- too late- in favor of Ascendant.
Upcoming lawsuit in Canada

So, the name change is official, but a bad mining company with any name is still a bad mining company. If in doubt, please go to www.decoin.org and check out the document 10 Reasons why you should not invest in Ascendant Copper (Copper Mesa nowadays)

Ascendant’s new name
In the past couple of years, Ascendant Copper Corporation’s shares have lost approximately 95% of their value, so it was only a matter of time before they would try to change their name, which is what they announced on June 27th (a decision apparently taken by a tiny percentage of its shareholders- most of them company officers). The proposed new name is Copper Mesa Mining Corp. The company is waiting for regulatory approval.
(http://www.canadanewswire.ca/en/releases/archive/June2008/27/c8603.html.

If they are dreaming the name-change will help “clean up their image” and to make it harder to link the company to its dark past here in Ecuador, or for its officers to avoid criminal lawsuits in Canada, they indeed are dreaming.

Lawsuit declared malicious.
On July of 2006, Leslie Brooke Chaplin, a US citizen, accused Carlos Zorrilla of theft, assault and other made up things, during a completely peaceful public event, and in which hundreds of anti-mining protesters participated (and which was also filmed and monitored by police). The false charges led to arrest and search warrants and a police raid on Mr. Zorrilla’s home, violating a surprising number of laws and basic human rights.

The 19 heavily armed police failed to find Carlos, but did leave behind a gun and a probable drug substance meant to further incriminate him in other criminal lawsuits (which, indeed, resulted in another arrest warrant). On July 3rd of this year, the judge overseeing the case finally ruled that the charges WERE MALICIOUS AND RECKLESS.

This is the legal definition of malicious lawsuit: involving malice; characterized by wicked or mischievous motives or intentions.
“An act done maliciously is one that is wrongful and performed willfully or intentionally, and without legal justification”.

In other words, made up to cause harm; false without legal grounds.

The ruling opens the way for Mr. Zorrilla to sue for libel and damages and to open a full-scale investigation to identify the company and/or individuals responsible for the orchestration and funding of this travesty of justice.

This, by the way, is the same lawsuit in which Chaplin’s lawyer says he never met Leslie Brooke Chaplin and that his signature was forged on all the legal documents presented in the case. The lawyer is suing Chaplin for the equivalent of identity theft- an extremely serious criminal offense in Ecuador.

Constitutional Court rules- too late- in favor of Ascendant.
DECOIN recently found out the constitutional court threw out the case presented last year by the Ministry of Mines and Petroleum against Ascendant’s mining concessions in Intag. However, the ruling will not, in the least, affect Ascendant’s loss of its concessions under the resolutions taken by the National Assembly in April of this year, which annulled 88% of Ecuador’s mining concessions. We believe that Ascendant and its subsidiaries will lose all of its concessions in the country.

And, stay tuned for some earth-shaking news related to an upcoming lawsuit in Canada.

Resumen: El juez penal sentenciO que la demanda presentada por Leslie Brooke Chaplin en Julio del 2006 por robo en contra de Carlos Zorrilla fue maliciosa y temeraria, abriendo el camino a que Carlos enjuicie penalmente a Chaplin y se pueda realizar una investigacion para dar con los responsables reales del montaje judicial en contra de Carlos.

Mientras tanto, Ascedant Copper esta tramitando un cambio de nombre a Copper Mesa Mining Corporation (YA FUE APROVADO EL CAMBIO)), despues de que sus acciones perdieron cerca del 95% de su valor inicial en los ultimos años...

Y, el Tribunal Constitucional sentenciO que la demanda de inconstitucionalidad presentada por el Ministerio de Minas y Petróleo el año pasado en contra de las concesiones mineras de Ascendant en Intag no procede- una resolución muy tardía, ya que la empresa perdiO sus concesiones en Abril de este anio por via del Mandato Minero, el mismo que anulO el 88% de las concesiones en el país.

July 3 Update: Lawsuit Ruled Malicious, and other news

2008-07-04T14:27:00.002-05:00

resumen mas adelante
Latest from Intag:
Ascendant’s new name; Copper Mesa Mining Corp
Lawsuit against Carlos Zorrilla declared illegal and malicious;
The Constitutional Tribunal rules- too late- in favor of Ascendant.
Upcoming lawsuit in Canada

Ascendant’s new name
In the past couple of years, Ascendant Copper Corporation’s shares have lost approximately 95% of their value, so it was only a matter of time before they would try to change their name, which is what they announced on June 27th (a decision apparently taken by a tiny percentage of its shareholders- most of them company officers). The proposed new name is Copper Mesa Mining Corp. The company is waiting for regulatory approval.
(http://www.canadanewswire.ca/en/releases/archive/June2008/27/c8603.html.

If they are dreaming the name-change will help “clean up their image” and to make it harder to link the company to its dark past here in Ecuador, or for its officers to avoid criminal lawsuits in Canada, they indeed are dreaming.

Lawsuit declared malicious.
On July of 2006, Leslie Brooke Chaplin, a US citizen, accused Carlos Zorrilla of theft, assault and other made up things, during a completely peaceful public event, and in which hundreds of anti-mining protesters participated (and which was also filmed and monitored by police). The false charges led to arrest and search warrants and a police raid on Mr. Zorrilla’s home, violating a surprising number of laws and basic human rights.

The 19 heavily armed police failed to find Carlos, but did leave behind a gun and a probable drug substance meant to further incriminate him in other criminal lawsuits (which, indeed, resulted in another arrest warrant). On July 3rd of this year, the judge overseeing the case finally ruled that the charges WERE MALICIOUS AND RECKLESS.

This is the legal definition of malicious lawsuit: involving malice; characterized by wicked or mischievous motives or intentions.
“An act done maliciously is one that is wrongful and performed willfully or intentionally, and without legal justification”.

In other words, made up to cause harm; false without legal grounds.

The ruling opens the way for Mr. Zorrilla to sue for libel and damages and to open a full-scale investigation to identify the company and/or individuals responsible for the orchestration and funding of this travesty of justice.

This, by the way, is the same lawsuit in which Chaplin’s lawyer says he never met Leslie Brooke Chaplin and that his signature was forged on all the legal documents presented in the case. The lawyer is suing Chaplin for the equivalent of identity theft- an extremely serious criminal offense in Ecuador.

Constitutional Court rules- too late- in favor of Ascendant.
DECOIN recently found out the constitutional court threw out the case presented last year by the Ministry of Mines and Petroleum against Ascendant’s mining concessions in Intag. However, the ruling will not, in the least, affect Ascendant’s loss of its concessions under the resolutions taken by the National Assembly in April of this year, which annulled 88% of Ecuador’s mining concessions. We believe that Ascendant and its subsidiaries will lose all of its concessions in the country.

And, stay tuned for some earth-shaking news related to an upcoming lawsuit in Canada.

Resumen: El juez penal sentenciO que la demanda presentada por Leslie Brooke Chaplin en Julio del 2006 por robo en contra de Carlos Zorrilla fue maliciosa y temeraria, abriendo el camino a que Carlos enjuicie penalmente a Chaplin y se pueda realizar una investigacion para dar con los responsables reales del montaje judicial en contra de Carlos.

Mientras tanto, Ascedandt Copper esta tramitando un cambio de nombre a Copper Mesa Mining Company, despues de que sus acciones habrían perdido cerca del 95% de su valor inicial en los ultimos años...

Y, el Tribunal Constitucional sentenciO que la demanda de inconstitucionalidad presentada por el Ministerio de Minas y Petróleo el año pasado en contra de las concesiones mineras de Ascendant en Intag no procede- una resolución muy tardía, ya que la empresa perdiO sus concesiones en Abril de este anio por via del Mandato Minero, el mismo que anulO el 88% de las concesiones en el país.

Friday 13th News: Mining in Ecuador

2008-06-22T02:43:00.001-05:00

http://www.northernminer.com/issues/ISArticle.asp?id=85699&issue=06132008&ref=rss
Daily News Friday, June 13, 2008
Ecuador update: many questions, a few answers
Vancouver - On June 9th, fifty-two days after a mining mandate in
Ecuador suspended all mining activity while the government drafts new
mining legislation, the government began transferring the country's
mining concessions to the state.
The move, entirely expected as part of the new law, has been one of
few clarities to surface about what the new law will mean for foreign
companies working in the small South American country. The mandate of
April 18th, supported by an overwhelming majority in the
constitutional assembly, cancelled 88% of all concessions, limited
companies' holdings to a maximum of three concessions, and suspended
mining activity for 180 days. Since then, little else has been
disclosed.
Lawyer Raul de la Torre, partner in the leading Ecuadorian law firm
Perez, Bustamante & Ponce, has been following the situation from
within the country and in a recent article in LatinLawyer he outlined
what he's managed to discern so far.
Torre writes that administrative charges will increase to US$100 per
mining hectare. It is unclear whether this refers to a one-time fee
or an annual charge. Either way it's a considerable cost - Aurelian
Resources' (ARU-T, AUREF-O) 95,152 mining hectares would cost the
company US$9.5 million per payment, for example. Dynasty Metals &
Mining (DMM-T, DMMIF-O) is in a similar position, holding 96,900
hectares that could cost US$9.7 million.
A second new piece of insight from Torre is that the new law will
include a 3% to 5% royalty. He describes the royalty as "payment to
the state for exploitation of mineral resources." Whether the tax
would be a net smelter royalty or take another form is not clear.
Thirdly, Torres writes "any environmental damage from a mining
concession would be cited as cause for contract termination." Since
mining damages the environment by its very nature, this clause could
give the government wide-ranging power to cancel mining rights and
thereby take back deposits.
In addition, the role of the state mining company being created under
the law is still a subject of great debate. Torres says the national
company will oversee development of any projects reserved for the
state. The question is which those projects will be.
One of the members of the national assembly who introduced the bill,
Betty Tola, said in the past that the new entity would hold the
concessions invalidated through the April mandate. That mandate
declared all mining concessions in which there had been no
exploration investment before the end of 2007 invalid. Similarly, any
concessions for which no environmental impact assessment had been
submitted by the end of 2007 were declared extinct as well as any
concessions within natural protected areas. Finally, any concessions
carrying unpaid fees were invalidated. There is to be no compensation
for cancelled concessions.
Concessions in those categories add up to 88% of the country's issued
mining concessions. Until recently, however, the government had not
formerly seized invalidated claims. According to Torre, the process
of transferring invalid claims into the new national mining company
has now begun.
While that process sounds dire, in an April interview with Dow Jones
Newswires Ecuadorian Mines and Oil Minister Galo Chiriboga rejected
the notion of the new national mining company interfering with
projects currently held by foreign companies. He indicated that the
state-run company would focus on industrial mining, that is mining
matter for construction materials such as cement.
The three-concession limit remains another very significant point of
confusion. The mandate officially limited any one person or company
to holding only three mining concessions. Chiriboga has since
suggested that this limit could be raised.
The limit could disable many foreign companies from proceeding with
their projects. Dynasty was slated to take its Zaruma gold project
into production at the beginning of July; the 180-day mining
moratorium delayed that, of course, but the three-concession limit
could halt it permanently. Dynasty holds 125 concessions in Ecuador.
Along the same lines, Corriente Resources (CTQ-T, ETQ-X) holds some
two dozen concessions in the country, with its 25 billion lbs. of
copper resource spread out among them.
Aurelian's Fruta del Norte deposit is, luckily, situated on a single
concession. That being said, the company holds 39 concessions in the
area so as to control the possible deposit extensions.
The questions are still far more plentiful than the answers but
Torre's insight gives a window into the law under development. All
should become clear when the new law is published on June 27.

Ascendant;s Ist Quarter 2008 Report: What the Company is Not Telling...

2008-05-22T14:07:00.000-05:00

Espaniol ya mismo..........

Ascendant's 2008 First Quarter Reports and What the Company is Not Telling

As expected, Ascendant's directors have risen to the occasion. The occasion being distorting and withholding information which might reflect badly on the company as reported on its latest quarterly report*.

Loss of Concessions.
The company does a great job of not admitting that the government basically took away their Junin mining concession (Golden 1 and Golden 2) This is what the company says in its latest report:
"In late January 2008, Ascendant received notices from the Regional Director of Mines, Province of Pichincha, that purport to nullify two concessions, the Golden 1 and Golden 2, that form part of the Junin copper/molybdenum project in Ecuador on the basis that these concessions were granted unconstitutionally".

The government didn't 'purport' to nullify the concessions- it nullified them, plain and clear.... AND legally. Whether a higher court or the Ministry rule otherwise in the future on appeal is totally besides the point. What the company should have told its investors was that their concessions were abolished but that they were negotiating with the government, appealing, begging, threatening to sue, etc.- anything but that the government purported to nullify their concessions. So, legally, right now they do not own Golden 1 nor Golden 2. And even if they were to win in court some day, the Mining Mandate below assures that the concessions will stay out of their hands.

The Mining Mandate.
On its latest report, the company gives the impression that the Mining Mandate, approved by a 95-1 margin by the nation's Constituent Assembly on April of 2008, merely froze mining activities in the country. True enough, but the Mandate also abolished concessions rights - without recourse to payment- of 80% of the country's concessions- including Ascendant's and any other that: a) threatened water resources; b) was not up to date on its payments to the government; c) did not have an Environmental Impact Study approved, and it limits concessions to 3 concessions per company (including subsidiaries). This sure seems material in nature. The Mandate also called for the creation of a state mining company. Under the Mandate there is no guarantee whatsoever that the companies will recuperate their concessions once the new mining law is drafted. The law will set forth totally new conditions on which to grant mining concessions and approve mining activities, and they are bound to include payment of royalties, a high windfall profit tax, a higher income tax bracket for mining companies, much stricter social and environmental regulations, and a steep per-hectare registration fee. And, there's a very good chance the state-owned mining company will usurp the juiciest mining projects. The new law, by the way, cannot modify or be in conflict with the Mandate.

In other words, a completely new ball game.

As for the company not knowing too much about the Mandate, it claims that:
"As Ascendant’s information on the new Mining Mandate has been substantially obtained from the press, the information provided by the Company is subject to uncertainty"

This is a bit far-fetched. The complete text of the Mining Mandate was put on the Constituent Assembly's web page within days of its April 15th approval. Just in case the company doesn't know how to access it, here it is: asambleaconstituyente.gov.ec Search for Mandato Minero. www.informineria.org also has a copy of it, as well as many other sites (google has 9,950 references of it in English, and 29,000 in Spanish).

Exploration? In Junin?
The company, once again, claims that it has spent money on exploring in the Junin concessions. This is patently false. The last exploration that took place in the Junin area was done by Bishimetals, back in 1996. In case there is any doubt about the above statement, Ascendant Copper Corporation has not spent a single penny on exploratory activities in its Junin project. If you look back in the last few reports, you will find the company saying it has spent millions of dollars on this. Below is the latest claim:
The Company used $1,745,000 in operating activities during the three months ended March 31, 2008, primarily for general and administrative expenses and exploration costs relating to the Junin and Chaucha properties (emphasis mine)

The Problematic Junin Deposit (made more problematic by damn termites!!)
On the latest report, the company makes reference to the Micon International's NI 43-101 report, which designated the Junin deposit to be four times larger than what the Japanese inferred through years of exploration. However, the company failed to inform the public in its latest report that Micon publicly said last year that it can no longer verify its claim, due to damage sustained to the original core samples by, among other factors, termite damage. If a company was, for some obscure reason, wanting to cover up misleading information it generated, this is a damn good way to do it (of course Decoin is not suggesting anything of the sort). The company also failed to inform the public that there a complaint was filed in Canada questioning the procedure used by Micon to assess Ascendant's Junin's mineral deposit.

Loss of Properties.
The company did not report the loss of 17 of its properties in the Junin area. The company permanently lost title to these lands, land which were sitting on top of the copper deposit, when the National Institute for Agrarian Development (INDA) legally abolished the company's ownership rights due to illegalities in the granting of the original land titles. Given that the company had said that part of their strategy to acquiring properties in the Junin area was to gain access to their concessions- this could constitute a material event.

Those Pesky Obstacles.
The obstacles listed above are just some of the many the company faces. For example, there is still the fact that most of the Junin concession is covered in primary cloud forests harboring dozens of threatened mammals, birds and amphibians (including the critically endangered brown-faced spider-monkey, jaguars, and spectacled bears). The area is also extremely rich in archeological sites. Under Ecuadorian law, mining in these areas is illegal. Others include the fact that there is just not enough water in the site or adjacent areas to undertake a mining project the size envisioned by Ascendant; the long-standing opposition by local governments and communities, and of course, the fact that there is a County government law that prohibits mining in native forests! Not to mention that the area above the minerals is not only in primary and secondary native forests, but that it has been managed and occupied by the Junin Community since 1997 and forms part of its community tourism project!

Then there was Telimbela.... And Chaucha
With nothing to show as far as real exploratory results, a mining mandate freezing all mining activities, no environmental impact study approved- nor likely in the near or mid-term future..... well, you get the picture. As for Chaucha:: no exploration can take place; and, if it hasn't already, the company may lose its concession. And wasn't it last year that the Chilean miner Antofagasta pulled out of the deal it had to develop this site because of very poor results?

The Gall of it All...
And, in the midst of this rapidly sinking ship, the company increases salaries and wages!!! Long live the spending of other people's money!!

* The report can be dowloaded from the company's web page (ascendantcopper.com) investors section

Reflections on the Mining Mandate

2008-05-01T21:02:00.002-05:00

en espaniol cuando tenga un chance..

Reflections on Ecuador's Mining Mandate.

It's easy to see why Canada's mining companies have spent so much money on publicity to try to lessen the public relations nightmare caused by the Constitutient Assembly's 95-1 passing of Ecuador's Mining Mandate, which annulled 88% of the country's mining concessions- including all of the big ones held by the Canadian companies. It's even understandable that Canada's Ambassador to Ecuador would go with a squad of Canadian mining company owners and managers to meet with Ecuador's president so publicly as they did last week. When there's so much at stake, anything goes.

Just what is at stake? The Mining Mandate abolished 4,474 mining concessions by passing the Mining Mandate this past 15th of April; approximately 600 were left after the onslaught, most are small mines and medium non-metallic projects (cement and building materials). Not a single large-scale metallic mine project should be left standing if the Mandate is implemented as it was meant to be by the Assembly. The main parameters for the abolition of concession rights include:

Concessions owners may only own three concessions (totalling 15,000 hectares)
It forbids mining in protected areas and their buffer zones, as well as if the project threatens water resources (what metallic mining project doesn't?);
It abolishes concessions rights if the concessions were given to government functionaries, or their relatives. There's rumors that this could hit the Ecuacorrientes project, among others.
It puts a freeze on all mining activities: the only exceptions are the 600 small projects not affected by the Mandate
It prohibits the approval of new mining concessions
Any concessions owner not up to date on their payment of patents to operate lose their concessions.
The Mandate also calls for the creation of a state-owned mining company- which has a lot of mining company owners very worried.

The mandate does allows mining to go ahead if the companies have invested in exploration and related activities, but not if it falls under the other categories. In other words, none of the large project will remain viable.

These measures are effect until a new mining law is drafted, in about six months time- which must be approved by the same Constitutient Assembly that approved the current Mandate! And not even the president can veto the mandate.

By the way, the anti-mining crowd cheered the Mandate, though not too loudly, because some expected the mandate to once-and-for-all call for a large-scale mining ban.

The parameters, if applied objectively, will stop all of IMC, IAMGOLD, Aurelian, Dynasty's, All Metals, Corriente Resources (Ecuacorrientes project), and Lowell's - as well as most other metallic mining project in the country, unless they were exploiting at the time of the Mandate's approval. Ascendant Copper lost their JUNIN concessions in January of this year, but this new legal mesures means the loss is permanent (the project poses a great threat to water resources). None of these companies were exploiting minerals- and most- if not all- do not even have their environmental impact studies approved for exploitation or exploration.

What happened in Montecristi? The Mandate's overwhelming approval took pro-mining circles here by surprise (to say the least). This was in part because many thought Assembly members would go a bit easier on the Mandate, given President Correa's seeming support for mining. But, inside the Assembly there is a very strong anti large-scale mining faction, led by the very popular ex-Minister of Energy and Mines, Economist Alberto Acosta, who belongs to Correa's Alianza Pais political party. Mr. Acosta has no problem stating his anti-large scale and open pit metallic mining stance. He's an economist and knows very well what mining means to developing countries.

This issue, more than any other to date, has caused a deep divide within the Alianza Pais, who won 60% of the Assembly's seats in last year's election.

Counter attack..... So, nowadays the companies are applying tremendous pressure-- not to have the Mandate abolished or vetoed (which is impossible), but to soften it as much as possible. They've also enlisted Canada's Ambassador (!) and Ecuador's Chamber of Mining (plus, unfortunately, the press is blindly-and well paid- on their side). The companies and their public relations firms are using scare tactics (thousands laid off, the country will go bankrupt, investors will flee....!!), and threats (we'll hold off on the international lawsuits if only...). And, a lot of money is being spent on trying to convince Ecuadorians that mining will really lift them out of poverty and will solve all of the country's problems- and it won't pollute!!

Mr Correa has recently shown signs of weakness by making pro-mining statements and rabidly attacking the opposition to mining every chance he gets- though he has been vague enough to possibly let it be interpreted that he is not against STATE-OWNED mining. The President also means to renegotiate mining deals if private mining is permitted in order for Ecuador to actually make money from mining (a radical idea indeed...!) This would include high royalties (perhaps as high as20%), and a 70-80% Windfall Profit Tax (which has been discussed by Ministry of Energy and Mines official this year).

The upshot of all this is that there are many mining company owners that are worried sick- and not just about losing a few hundred million dollars here in Ecuador, but about the potential spread of the Mining Mandate affect to other developing countries. They may not be too worried about whole-scale nationalization of mines (though I would be if I was them), but the steep rise in royalties and windfall profit tax must keep them up at night.

Everyone knows that natural resources of these countries have been ripped off left and right by transnationals for centuries, ruining economies, and leaving the people impoverished, and to face long-lasting social and environmental havoc. All Ecuadorians have to do is look over the Andes at the horror left behind by 30 years of petroleum exploitation in the Amazon to know this isn't just talk.

So... the rush is on by the transnationals and their in-house plenipotentiary representatives to kill this initiative before it spreads like wildfire. A Mayor from an anti-mining local government has publicly said there are hundreds of millions of dollars earmarked by mining companies to win the hearts and votes of Assembly members. On the other hand, the resistance to large-scale metallic mining has never been stronger in Ecuador.

Unlike in the past, the resistance now includes all of the powerful indigenous organizations, who this year joined with all of the human-rights, communities, and environmental groups. And, given that the vote was so overwhelmingly pro-communities and anti- mining last month, there's every chance that no matter how much the companies spend, the Assembleistas are not going to sell their vote to betray they something they so whole-heartily belive in- an Ecuador free of large-scale metallic mining.

Carlos Zorrilla

IT'S ALL OVER FOR LARGE-SCALE MINING IN ECUADOR.

2008-04-18T20:54:00.000-05:00

IT'S ALL OVER FOR LARGE-SCALE MINING IN ECUADOR

(Español ya mismo....)

In the last few months, the mining companies spent millions of dollars in publicity to try and convince Ecuadorians that large-scale mining would get them out of poverty, create thousands of new jobs, and bring millions in rents for the government as well as prosperity for everyone. However, today, Ecuador's national Constitutional Assembly passed the Mining Mandate, which will cause the "extinction" of most of the nation's mining concessions. The Mandate was passed by a 95 to 1 margin, with 25 abstentions.

The Mandate, composed of 12 articles, sets out the reasons for the extinction- without recourse for recompension- of all the mining concessions where no previous consultation took place with the communities, as of March 31 2007-- Just this measure alone will annul all- or nearly all- the mining concessions given out by the government since the 1998 Constitution, the year this safeguard went into effect. This measure should extinguish about 90% of Ecuador's large-scale metal mining projects- including Canada's Ascendant Copper's, IAMGOLD, AURELIAN, ECUACORRIENTE (CORRIENTE RESOURCES), AVALANCHE, ALL METALS, DYNASTY, LOWELL, and many others.

The Mandate sets out other causes for the extinction the concessions- including all mining projects that may impact water resources , and those found within private or public protected areas and their buffer areas (article 3). Those projects that have not kept up their dues with the Ministry of Mines and Petroleum will also lose their concessions, as well as those who have not invested in exploration activities, or in developing their projects.

The only metallic mining projects able to continue operation, according to article eight of the Mandate, are those which are currently in the exploitation phase and which have complied with the previous consultation constitutional guarantee. It's worth mentioning that there are no large-scale metal mining projects in the exploitation phase in Ecuador.

NEW MINING LEGISLATION
Six months from today, was the time given by the Mandate for the government to draw a new mining legislation- which will include a national mining company- something spelled out in the Mandate.

LIMITS TO CONCESSIONS: THREE PER COMPANY
Concessions numbering more than three per individual or company (including subsidiaries), are likewise extinguished. this limits the number of hectares per company or individual to 15,000 hectares (5000 hectare per concession max). Most companies own dozens of concessions- including Ascendant, Ecuacorrientes, etc. In the case of Ecuacorrientes, until 12 noon today, they owned more than 62,000 hectares within more than a dozen concessions. Now, depending on how the Mandate is interpreted, they own nothing. Ascendant is in a similar boat- if they didn't lose all their concessions for failing to undertake the previous consultation (and we are not aware that the communities were legally consulted anywhere in Ecuador), they will lose all but three of their concessions. Their crown jewels, Golden 1 and Golden 2, the company lost in January of this year as a consequence of legal decision taken by the Ministry of Mines and Petroleum- the Mandate is a far stronger legal measure, which leaves no room for a legal challenge. The nature of the powers vested in the National Constitutional Assembly makes it impossible to legally challenge the body's decisions- and not even Ecuador's president can do anything about it.

At least in the case of the mining concessions in the Intag area, not a single mining project has dutifully complied with this constitutional guarantee. This not only includes Ascendant Copper, but also Avalanche, and Lowell Mining, as well as others. At the national level, this will cut down 3,000 or more concessions- mostly belonging to Canadian companies.

Many analysts feel the mandate seeks to wipe the slate clean with mining in Ecuador, in order to create much more favorable conditions benefitting the country. The current mining law, modified and paid for by a World Bank project in the 90's, is seen as a particularly harmful for the country's interests. The law exclusively beneffited the mining companies. A big question remains whether the new mining law, which should be ready in 180 days, will permanently prohibit all large and medium scale metal mining in Ecuador. There is widescale support within and without the National Assembly for an Ecuador free of large and medium scale metal mining. After the Mandate, the conditions could hardly be better for it to come about.

We in Intag see it as an amzing victory of people power over huge vested interests. As mentioned earlier, the mining companies spent millions of dollars to publicize their pro-mining agenda. Just in the past 48 hours alone, the TV, radio and printed press were indundated with such publicity. There were also wide-spread rumors of hundreds of millions of dollars invested in vote gathering within the Assembly. In the face of this unbelieable onslaught, it is nothing if not amazing that our position won- with the support of some very couragous and ethical members of the Assembly.

TONIGHT WE CELEBRATE THIS TRULY AMAZING VICTORY OF RIGHT OVER MIGHT AND BELIEVE THAT IT WILL LEAD TO AN ECUADOR FREE OF LARGE AND MEDIUM SCALE METAL MINING IN THE NEAR FUTURE!

END TO LARGE SCALE MINING IN ECUADOR? FIN DE LA GRAN MINERIA EN EL ECUADOR?

2008-04-16T15:24:00.003-05:00

Mining Mandate: end to large-scale mining in Ecuador / (español ya mismo...)

For the past three months, Ecuador’s Constitutional Assembly has been working on a mining mandate meant to fix some of the worst aspects of the discredited mining law, which did little besides legalize the trafficking of mining concessions, leaving the country without any real benefits. Yesterday, the Assembly finally issued the final text of the Mandate which will be debated and likely approved by the end of this week.

The Mandate will revoke all mining concessions that, among other things:
a) Have not invested in exploration activities to March 31 2007
b) Have not presented, nor have their environmental impact study approved
c) Number more than three concessions per company or individual
d) Threaten water resources or are found within or inside protected areas

STOP WORK ORDER.
In addition the mandate puts and end to all activities within all large and medium scale metallic mining projects not affected by the previous limitations until a new mining law is enacted- which should come about not later than five months after the new constitution comes into effect.

FREEZE ON NEW CONCESSIONS
The mandate also orders a moratorium on the issuance of new mining concessions until the new mining law is enacted (this is a process that could take about a year)

Finally, the mandate calls for the creation of a state-owned mining company- which is wreaking havoc on the nerves of most mining companies

The effects of the mandate, once approved, will revoke more than 90% of the country’s concessions- and possibly 100% of those not in the exploitation phase.

The nature of the Constitutional Assembly makes it illegal for any of its decisions to be overturned.

For Ascendant Copper's Junin project, it means the end, since the company has notinvested in exploratory activities (according to Ecuadorian law), nor does it have their environmental impact study approved. In addition, the project heavily threatens water resources, and is within a protected area's buffer zone.

The measure has been described by Ecuador's mining chamber as a confiscation.

Source: http://www.eluniverso.com/2008/04/16/0001/8/569738D66AB34E7CB62845700C400771.aspx

MandatoMinero : fin a la mayoria de las concesiones en el Ecuador

Durante los ultimos tres meses, la Asamblea Constitucional del Ecuador ha estado trabajando en un mandato minero para arreglar algunos de los peores aspectos de la desacreditada Ley de Mineria , que no sirvio mas alla que para legalizar el trafico de concesiones mineras, y no ha significado ningun beneficio para el pais. Ayer, la Asamblea emitio finalmente el texto final del Mandato, el cual se debatira y probablemente sera aprobado antes de finales de esta semana.

El Mandato revocara todas las concesiones mineras que incursan en las siguientes causas:
A) No haber invertido en actividades de exploracion al 31 de marzo de 2007
B) No haber presentado, ni tienen su estudio de impacto ambiental aprobado
C) Que sobrepase de tres por persona natural o empresa
D) amenazan a los recursos hidricos o se encuentran dentrode, o en el interior de las areas protegidas o sus zonas de amortiguamiento

Ademas, el mandato pone fin a todas las actividades dentro de todas las grandes y medianas escala de los proyectos mineros no metalicos no afectadas por las limitaciones anteriores, hasta una nueva ley de mineria sea promulgada-lo que deberia producirse a mas tardar cinco meses despues que la nueva Constitucion entre en vigor.

Las revocatorias no se aplican a la mineria a pequeña escala.

Congelacion de las nuevas concesiones
El mandato tambien ordena una moratoria de la emision de nuevas concesiones mineras hasta que la nueva ley de mineria se promulga (se trata de un proceso que podria tomar cerca de un año)

finalmente, el mandato crea una corporación minera estatal- preocupando el sector minero privado.

Una vez aprobado, el mandato causara la revocatoria de mas del 90% de las concesiones del pais-y, posiblemente, el 100% de los que no se encuentren en la fase de explotacion.

La naturaleza de la Asamblea Constituyente, hace ilegal para que sus decisiones sean a cualquier de sus decisiones.

El mandato minero significa el FIN Para el proyecto JUNIN de Ascendant Copper, ya que la empresa no ha invertido en actividades exploratorias (de acuerdo a la legislacion ecuatoriana), ni tiene su estudio de impacto ambiental aprobado. Ademas, el proyecto pone en riesgo recursos hidricos, y se encuentra dentro de una zona de amortiguamiento de una area protegida.
(disculpas por la faltas ortográficas- esta vaina no tiene tildes)
http://www.eluniverso.com/2008/04/16/0001/8/569738D66AB34E7CB62845700C400771.aspx

Ascendant's Incredible 2007 Reports/ increíbles informes de Ascendant del 2007

2008-03-31T06:53:00.002-05:00

Ascendant's Unbelievable 2007 Year-end Reports

Yes, it's that time of year again!! Ascendant just published it's 2007 Financial and Management and Discussion Analysis reports, and here are some of the more interesting information contained in the reports and what they "forgot" to include.

The documents avoid mentioning important events that could profoundly affect Ascendant's future in Ecuador, which transpired during the past 12 months, and makes the following incorrect claims:

a) It says nothing of the fact the government legally annulled the company's main concessions in Ecuador; its Golden 1 and Golden 2 concessions. The reports state that the company received a government communication that purports to annul said concessions, but in fact, the annulment is legal and is in full effect. In spite of the loss of the concessions, the company continues to list the ex-properties as currently owned. The loss of the concessions clearly constitutes a material event which was not reported.

b) The company's purposely avoids mentioning that in October of 2007, the government, through it's National Institute for Agricultural Development (Spanish acronym: INDA ), annulled the ownership rights to 17 of the company's properties in the Junin area. The company had purchased these properties, as it has maintained in the past, to access its Junin mining concessions. Loss of the properties puts the future development of the Junin project at risks.

c) The company fails to disclose that in late 2006 its Environmental Impact Study was rejected by Ministry of Mines and Petroleum officials. It misinforms the public by stating that it is in the process of responding to observations made to the study. There is huge difference between making observations to an EIA, and having it outright rejected on technical and legal grounds by government officials.

d) The company is still maintaining that it owns the challenged inferred mineral deposits in its Golden 1 and Golden 2 Junin concessions, even though:

i. It no longer owns the concessions

ii. Micon International affirmed in 2007 it could no longer verify its earlier, and inflated, estimates due to damage, loss and or theft of original core samples.

As you recall, in 2005 CEDA challenged the legality of MICON's work in establishing the inferred mineral content of the company's Junin deposit.

e) As in previous years, the company claims to have incurred exploration costs on its Junin mining concessions. For 2007, it claims to have incurred 1,9 million dollars in such costs. Yet, the last year any exploration activity was carried out in the Junin area was in 1996. Furthermore, and as the company itself admits in the reports, the company has been unable to get it's Environmental Impacts Study for exploration approved. It is illegal to undertake any mining activities in Ecuador without approval of Environmental studies. The misleading information published by the company could give investors a false idea that the company is engaged in exploration activities in the Junin concessions when nothing could be further from the truth.

f) There are several business transactions between ex-company directors and the present board involving hundreds of thousands of dollars (see Telimbela and Magdalena properties, pages 13-14 Consolidated Financial Statements). In light of the uncertainties surrounding the future of mining in Ecuador resulting from the change in government and the fact that Ascendant already has lost the title to several mining concessions, plus the government's widely publicized plans to re-write the mining legislation and to pass a mining mandate that would annul thousands of mining concessions, some of these dealings are highly suspect.

g) Losses. 2007 was a record year for Ascendant. The company lost $10.4 million in the past 12 months, and claim to having spent $ 5.6 million of that on exploration; about 50% more than in 2006. As the company was busy losing money, properties and whole concessions, the wages and benefits, nonetheless, increased from $1 million to $1.7 million.

http://www.ascendantcopper.com/Content/FlashPaperEng/ACX_MDA%20YE123107%20FINAL.swf
http://www.ascendantcopper.com/Content/FlashPaperEng/ACX%20FS%20YE123107-FINAL.swf

Los increibles informes de Ascendant para el 2007
Ascendant acaba de publicar sus informes gerencial y economicos del anio 2007. Entre las cosas mas destacable que alegan, es la siguiente:

El informe alega u omite la siguiente informacion:

a) No menciona la revocatoria de la Golden 1 y Golden 2 (alegan que el oficio del gobierno pretende, o alega, revocar las concesiones)

b) Debido a varias ilegalidades, el Instituto Nacional de Desarrollo Agricola anulo 17 titulos de propiedades de Ascendant en 2007. Sin embargo, los informes no lo mencionan. En anteriores ocasiones, la empresa habia dicho que habia adquirido dichas propiedades para acceder a sus concesiones.

c) La empresa sigue insistiendo que es propietaria de las concesiones Golden 1 y Golden 2

d) Todavia usan el exagerado calculo del yacimiento de cobre hecho por Micon Internacional en el 2005 (4X mas alto de que los japoneses encontraron). En el 2007 Micon alego publicamente no poder confirmar su calculo debido a danios a las muestras geologicas!!

e) En vez de decir que el gobierno le rechazo el Estudio de Impacto Ambiental, dice que la empresa se encuentra "estudiando" las observaciones hechas a dicho estudio.

f) y alegan que la decision de suspender sus actividades (en sept) fue decision de la empresa

g) Perdidas. Ascendant rompio records en el 2007. La empresa perdio $10.4 millones durante los ultimos 12 meses, y alega haber gastado $ 5.6 en exploracion; aproximadamente 50% mas que en el 2006. A la vez que la empresa estaba perdiendo plata, propiedades, y concesiones, los salarios y beneficios, sin embargo, incrementaron de $1 millon, a $1.7 millones.

http://www.ascendantcopper.com/Content/FlashPaperEng/ACX_MDA%20YE123107%20FINAL.swf

One Step Closer to Nationalization / Nuevas de Intag

2008-03-23T20:45:00.003-05:00

Ecuador Takes One Step Closer to Nationalizing Its Mining Industry
(and other news….)

On his weekly radio address to the nation on the 15th of March, Ecuador's president told Ecuadorians he would exploit its mineral resources in the south of the country through the creation of a national mining corporation. The last 6 or so months, Correa has expressed support for exploiting the four large gold-copper deposits in the south (belonging to Aurelian, Corrientes Resources, Iamgold and IMC- all Canadian corporations) As for Ascendant’s ex-Junin project, when mining comes up in Correa’s pro-mining speeches Junin and Intag are never mentioned, and no mining is planned for the north of the country (the status of Ascendant’s ex-Junin concessions has not changed- they are in the hands of the government)

The seemingly pro-mining stance by the president is in direct opposition to the anti large-scale mining position most Constitutional Assembly members, and most of Ecuador's civil society holds. Additionally, in all the public forums organized by the Constitutional Assembly, the answer has been a resounding NO to large-scale mining projects. During the past 3 months, this position has received very strong support from Ecuador’s largest indigenous organizations, including CONAIE and ECUARUNARI. The latest manifestation of rejection to large-scale mining came on the 11th of March as part of a multitudinous march on the capital by thousands of indigenous from all over the country.

It is the Constitutional Assembly, and not the President, who will re-write the constitution. In this context, there are calls from several important sectors of the nation, including major political parties, to ban all large-scale metallic mining projects. It is this issue, more than any other, which has created the most friction within Correa's own party.

Meanwhile, the plans for the mining mandate are on hold. The mandate would annul those concessions that were not annulled in January of 2008,until such a time that a new mining law is approved by the yet-to-be elected national congress (which could be a very long time). There are several versions up for debate, and most of them call for ban on large-scale and open-pit metallic mining in Ecuador.

And other news….
Ascendant has made the news in other forums. For example, it had the distinction of being on the list of mining companies criticized by the February 14 report of the Earthworks-Oxfam’s No Dirty Gold Campaign, which lists companies criticized for various unethical behavior, including violating human rights, dumping wastes on rivers and oceans, for their alleged involvement in armed or militarized conflict, or forced relocation of nearby landowners and/or indigenous peoples. http://www.mineweb.com/mineweb/view/mineweb/en/page68?oid=46846&sn=Detail

In the “Additional News From the Weird” category, it now seems official that Ascendant will acquire St Genevieve Resources. The Montreal-based company has a couple of highly unproductive mines in Arizona and seemed on the brink of total meltdown. The company’s stock price has hovered at 1cent per share lately (yes, $0.01). Ascendant’s own shares have hovered in the 10 cent range recently, and have been on a downhill ride for quite sometime. Without its Junin mining concessions, and the disappointing Chaucha drill results (bad enough to scare off its Chilean partner earlier last year), there’s really nothing to Ascendant. Chaucha’s exploration results, it’s worth mentioning, was earlier evaluated by a paid Ascendant employee.

La nacionalizacion de los recursos mineros mas cerca en el Ecuador
El presidente Rafael Correa, en su ultimo discurso semanal radiofonico (Sabado (15-03) le dijo a la nacion que explotaria el cobre y el oro en el sur del pais a traves de la creacion de una corporacion minera nacional. Durante los ultimos seis meses, Correa ha expresado su apoyado a la explotacion de cuatro yacimientos de oro y cobre en el sur del pais (pertenecientes a Aurelian, Corrientes Resources, Iamgold and IMC- todas empresas canadienses) Junin e Intag nunca se mencionan, y ninguna mineria esta concebida para el norte del pais (el estatus de las ex-concesiones de Ascendant en Junin no ha cambiado- permanecen en manos del gobierno)

Esta postura por el presidente se encuentra en oposicion directa a la posicion de la mayoria de los asambleistas, y la mayoria de la sociedad civil ecuatoriana. Ademas, en todos los foros publicos organizados por la Asamblea Constituyente, la respuesta a sido un contundente NO a la mineria a gran escala. Durante los ultimos 3 meses, dicha posicion ha recibido un fuete respaldo de parte de las organizaciones indigenas mas grande del Ecuador, incluyendo a CONAIE y ECUARUNARI.

Es la Asamblea Constituyente, y no el presidente, quien elaborara la constitucion. Y, dentro de este contexto, ha habido varios reclamos de importantes sectores del pais, incluyendo de parte de importantes partidos politicos, para prohibir todo proyecto minero metalico a gran escala. Mas que cualquier otro tema, este es el que mas friccion ha creado dentro del partido de Correa.

Mientras tanto, los planes para el mandato minero esta en espera (yamismito). El mandato anularia las concesiones que no fueron anuladas en enero del 2007, y suspenderia nuevas concesiones hasta que la nueva ley de mineria sea redactada por el congreso nacional, aun por elegirse (lo cual podria demorar mucho tiempo). Existen varias versiones en discusion del mandato, y la mayoria prohibirian la mineria metalica y a cielo abierto en el Ecuador.

Por otro lado (y en la categoria de Aunque Usted no lo Crea), Ascendant se encuentra en proceso de adquirir a St Genevieve Resources, una pequenia y practicamente bancarrota empresa canadiense con un par de minas impresionantemente improductivas en el estado norteamericano de Arizona. El precio de las acciones de St Genevieve es de un centavo de dolar por accion- la de Ascendant esta por los 10 centavos de dolares... ¿Que estaran pensando los inversionistas??

Amnesty for Intag Defenders! / Aminstía para defensores inteños del ambiente!

2008-03-14T17:53:00.004-05:00

NIGHTMARE ENDS FOR ACCUSED IN INTAG

Huge victory for Intag residents opposing Ascendant’s mining project

On March 14, the National Constitutional Assembly overwhelmingly approved a general amnesty in favor of 360 defenders of the environment who were facing criminal lawsuits as a consequence of their opposition to large hydro, petroleum, and mining project in Ecuador.

Included in the amnesty were all Intag residents facing lawsuits presented by Ascendant Copper, or persons linked to the company. What this boils down to is that all these criminal lawsuits will be annulled.

In all, over 40 Intag residents will benefit from the Assembly’s decision.

Meanwhile, the Assembly is still mulling over the mining mandate to annul thousands of mining concessions in the country (see our previous updates)

INTEÑOS BENEFICIADOS POR DECISIÓN DE LA ASAMBLEA NACIONAL CONSTITUYENTE

Esta tarde, 14 de Marzo, la Asamblea Nacional Constituyente resolvió, con 91 votos a favor, de otorgar Amnistía a 360 defensores de la naturaleza- incluyendo varios moradores de la zona de Intag.

En el caso de Intag, los y las campesinas habían sido acusados por parte de la empresa minera Ascendant Copper, sus empleados o representantes de varios delitos penales, algunos de ellos totalmente fabricados, como resultado de varios enfrentamientos debido a la presencia de la empresa minera canadiense.

En un momento llegó a existir más de 12 juicios penales en contra de decenas de inteños e inteñas opositores al proyecto minero cuprífero, pero los comuneros de la zona de Intag prevalecieron en los 4 juicios que llegaron a ventilarse en las cortes del país. Los inteños y representantes de organizaciones defensoras de derechos humanos habían calificado la lluvia de juicios y la manipulacion del sistema judicial del país como una infame mecanismo para intentar de intimidar a la oposición a la minería. En Imbabura, el Doctor Edgar Merlo fue quien defendió a los y las procesados en Imbabura del podería político y económico de la empresa transnacional.

Entre los afectados positivamente por la amnistía constan Jaime Polivio Pérez, y Carlos Zorrilla- dos dirigentes inteños que han tenido que enfrentar varios juicios penales por su oposición al proyecto minero de Ascendant ((nota- tan pronto tenga la lista completa de las decenas de inteños amnistiados, lo enviaré))

Para acceder a la información de la Asamblea Constituyente referente a esta decisión: http://asambleaconstituyente.gov.ec/boletines/amnistia-para-defensores-de-los-derechos-humanos-criminalizados-aprueba-asamblea.do

BOLETÍN DE PRENSA
DECOIN
www.decoin.org

Ascendant leading the march to the chopping block

2008-02-29T14:54:00.004-05:00

ASCENDANT COPPER LEADING MINING COMPANIES TO THE CHOPPING BLOCK

The government let the official cat out of the bag today by stating that next week the Constitutional Assembly will vote on the mining moratorium and revocation mandate. The Assembly was voted into power last year with the main goal of re-drafting the country’s Constitution, and has the power to legislate.

Though there are several draft versions of the mandate making the rounds, all of them apparently call for a revocation of all large mining concessions (over 200 hectares in some versions). Some versions call for a total ban on large-scale metal mining projects, and to all mining in certain biodiverse or water-rich catchment areas. Mining will also very likely be off limits in all indigenous territories.

According to reliable sources, at least one version calls for the juiciest mining concessions to be taken over by a proposed state mining corporation.

Elements in common with many of the draft mandates is a moratorium on new mining concessions, a virtual moratorium on large-scale mining and the issuance of new concessions until a brand new mining law is drafted, which is meant to bring much higher rents to the country, and to institute much stronger social and environmental safeguards. However, today the Ministry of Mines and Energy said that mining will only proceed if it is clearly in the benefit of the country, and let it be known that the current mining law has only benefited mining companies and created social unrest. He went on to say that this year the government will introduce a new mining law.

Until such a law is drafted and approved by the yet-to-be elected Congress, many, many months will come and go.

The new law will undoubtedly limit or do away with large-scale or open-pit mining projects, reinstate the royalty at much higher rates, and raise taxes for the mining companies. Environmentalist sectors foresee very stringent social and environmental regulations in the new law, with free, prior and informed consent of all communities and local governments potentially affected by the projects as one of the most important safeguards. In the best of cases this would apply to small and medium scale mining projects, since most indigenous organizations, communities and environmental organizations are betting for an end to medium and large-scale metal mining, and all open-pit.

In his news conference today the Minister of Mines and Energy referred to the fact that some large-scale mining projects have caused “serious frictions between environmental groups and rural communities that are opposed to mining in their territories ”; very likely in parte referring to the well-publicized violence and conflicts linked to Ascendant's presence in the Intag area (site of its Junin project, which the company lost title to in January of this year)

To further dampen the mining panorama for mining companies in Ecuador, as of two months ago, the biggest indigenous organizations have come out strongly against large-scale mining. This includes the powerful Ecuarunari and CONAIE, Latin America’s most powerful indigenous organization. These organizations join hundreds of other smaller, social, human-rights and environmental groups opposed to mining as a model of development in Ecuador, with sovereign issues, the threat to water and mining’s environmental impacts being some of the more important main rallying points.

The mining companies, meanwhile, keep spending millions of dollars in publicity, and of late even gained the support of the government of Canada, who has been co-hosting forums with mining companies and selling the squeaky clean-and false- image of the responsible Canadian corporation (the ultimate oxymoron in the mining world)

Keep tuned. There’s a good chance next week, the Constitutional Assembly will vote on the mining moratorium.

The Ministry’s news conference (in Spanish) can be accessed at: http://www.univision.com/contentroot/wirefeeds/lat/7419316.html

Ascendant's Downfall

2008-02-06T08:07:00.000-05:00

Ascendant’s Downfall

Carlos Zorrilla

The government of Ecuador recently annulled the main concessions to Ascendant Copper Corporation’s Junin project; the company’s most valuable resource. The reasons for Ascendant’s title revocation has nothing to do with unpaid mining patents, the main reason the government revoked many of the 585 other mining concessions in Ecuador. And, it’s likely that thousands of other concessions will also soon be revoked.

Investors shouldn’t complain that they weren’t warned about Ascendant’s downfall; they should have seen it coming years ago.

During the past three and one half years, or ever since Ascendant made landfall in the Intag area, there have been numerous warnings about irregularities, violence, and illegal deals and activities, linked to the company’s Junin copper-molybdenum project. These red flags were published on the Internet and elsewhere during all this time. In addition, DECOIN, one of the many local organizations opposing the project, repeatedly warned the public about possible misleading information put out by the company regarding not only the legality of the concessions, but also contesting fundamental things like the size of Junin’s copper deposit and the nature and extent of the local opposition.

From the very beginning DECOIN denounced publicly the probable illegal nature of the Junin concessions acquired by Ascendant, and the fact that the acquisition violated the community’s constitutional right to be previously consulted. It now turns out that this lack of consultation may be at the heart of Ascendant’s downfall in Ecuador.

When the company started claiming the Junin copper deposit was four times greater than what a Japanese five-year exploration program inferred was there, we denounced it here in Ecuador, and in Canada to different Securities Exchange Commissions (which have failed miserably in protecting Canadian investors). The irregularities we noticed led us to denounce in Canada and on the web, that the work by Micon International, the company that came up with the inflated copper reserve estimate, violated Canadian legislation. In 2007 Micon itself finally announced that, due to improper handling and “termite damage” sustained by the Japanese mineral samples, they were unable to confirm their own earlier higher estimate of the copper deposit. Our organization made sure the BC Securities Commission took note of this serious inconsistency. Yet, not long afterwards, one of Ascendant’s officers, termite damage notwithstanding, publicly announced in a press release that they were sitting on one of the world’s biggest copper deposit.

One of the things our organization went out of its way to denounce was the company’s unrealistic portrayal of the obstacles its Junin project faced on the ground, and especially the character of the local resistance. The company, on the other hand, kept insisting that the opposition came principally, or only, from one organization (DECOIN), and that it was composed of a very small group of “radicals”, or ecoterrorists. However, if anything stands out in the resistance to this project, it’s the amount, determination and diversity of the forces opposed to the Junin project, which includes all local governments, and most communities.

The Failed Environmental Impact Study. In yet another instance of misinformation, when, in late in 2006, the government rejected the company’s Environmental Impact Study, Ascendant reacted by telling its investors that they were “studying” the observations made by the government to their study. That’s a very far cry from being handed an outright rejection.

What Exploration? In its 2006 year-end report, the company claimed it had spent over 3.4 million dollars in exploration activities in Junin. However, no exploration has taken place since 1996; something our organization pointed out in one of our many blogs, and something we made sure the BC Securities Commission knew about. The question remains unanswered: just what did the company spend all that money on? “Security” seems to have been one of those black holes a lot of money went into, and we believe that the ensuing consequences of the misuse of security forces were a major contributing factor to, not only the company’s downfall, but perhaps the downfall of a lot of other Canadian Junior mining companies in Ecuadors, who lost their concessions along with Ascendant’s in January of this year.

The company security plan involved hiring the international firm of Honor and Laurel, a company registered in Colombia, but not Ecuador, thus illegally working in the country. One of Honor and Laurel’s founders comes from British military intelligence background, which has been fertile ground for spawning mercenary armies. The company’s security plan also saw the hiring of several other security firms to supposedly protect employees in the Intag area, but which the locals correctly interpreted as tools for intimidation.

One of the outcomes of the company’s security investments resulted in a paramilitary-like attack against defenseless community members, involving dozens of hired, heavily-armed thugs dressed in private security outfits, who tried to shoot and tear-gas their way past a community roadblock. The whole thing was filmed and photographed in high quality digital media and broadcasted to the world. This so angered the – at the time- industry-friendly government, that it immediately issued the first of many stop-work orders against Ascendant. The abuses by the security thugs were so outrageous that they were denounced internationally by several Human Rights organizations, including CEDHU, Latin America’s most prestigious Human Rights organization. Amnesty International also became involved in investigating and denouncing other instances of intimidations against local opponents to the company’s project, including: a judicial set up to try to imprison one of DECOIN’s member; plus numerous death threats, and an attempted lynching. Global Witness also investigated the intimidating tactics. In other words, the issue became an international one, so that it is nearly impossible for investors not to have heard of the grave incidents linked to the company. Ascendant, on its part, continued to make light of the confrontations like the paramilitary attack, at first saying the thugs were “agricultural consultants”. The company has never apologized to the communities, or to the persons injured or shot in the attack.

Land Trafficking. The investigation by the government’s anti-corruption commission into illegal land trafficking, which eventually led to Ascendant losing 17 of its properties in the Junin area in October of 2007, is another example of gross negligence and underreporting by the company. The purchase of land was a strategic part of the company’s plan to gain access to their concessions and depopulate the area. The company, as far as we can determine, never reported this significant material fact to neither its shareholders, nor to Canadian regulatory authorities.

These are not, by far, all the examples of what we consider to be gross corporate irresponsibility committed by the company (for more examples www.decoin.org) And, it’s not like the information was that difficult to find on the Internet. For example, the electronic magazine, Upside Down World, as well as Counter Punch, Z-magazine, The Dominion, plus the Ottawa Citizen are just some of the many print and electronic publications that have reported on the issues mentioned above.

This does raise the very troubling question as to just how many red flags need to be raised in order for regulatory institutions in Canada to step in, investigate and stop this kind of corporate mayhem. Apparently, in Canada, all these flags were not enough.

And, though the long and disturbing nightmare seems to be finally over in Intag with Ascendant’s departure from this beautiful land, a disturbing aspect still lingers in the air, like a pestilence. And that is, what forces keep governmental regulatory institutions in Canada from preventing this kind of outrageous corporate behavior? And, what can be done to prevent the same thing from happening all over again, either here or somewhere else around the world? The lack of governmental involvement affects not only communities on the ground, but also Canadian investors, who each year lose billions of dollars to unethical corporations (in Ascendant’s case, the shares have lost over 90% of their initial value).

Since 2005, the British Columbian Securities Exchange has received several of our denunciations and official complaints regarding Ascendant Copper Corporation’s irresponsible behavior. We’ve also traveled to Canada and denounced it to the Parliament’s Commission on Foreign Affairs and International Trade. Yet, after more than two years, all we’ve received from the Securities Commissions is empty form letters saying they are investigating and that they are unable release any information. Meanwhile, Canadian mining companies keep going back to the unregulated Great Canadian Stock Exchange Giveaway to fill their bottomless pockets, so they can continue to fund widespread social and environmental havoc overseas.

But the Toronto Stock Exchange is not the only source of funding for companies the likes of Ascendant. Another is "strategic" partnership with so-called reputable companies- companies that remain on the sideline as others do their dirty work for them. In 2006 Rio Tinto Zinc signed a deal with Ascendant knowing of the very serious environmental issues, and manifold social conflicts and legal challenges facing the project and the company. After the paramilitary attacks, and other outrageous denunciations of grave human rights abuses taking place at Ascendant's JUNIN concessions, Rio Tinto, who considers itself to be a socially responsible corporation, did not terminate the contract with Ascendant; perfectly highlighting the hypocrisy behind the social responsible corporate world.

We are certain that Ascendant Copper Corporation is gone for good from the Intag area and that they’ve lost the Junin mining project. But unless major changes take place where, and how the companies get their funding, we won’t rest.

More Concession on the Chopping Block / Se cancelarán más concesiones

2008-01-29T14:33:00.001-05:00

More Concession on the Chopping Block
Espaniol abajo...

Published in El Univeso Newspaper (Ecuador's largest daily)

Monday January 28th, 2008

Mandate will revoke mineral concessions
QUITO

A decision by the National Constituent Assembly will broaden the
government's resolution to revoke 587 mining concessions. The mining
industry association rejects the mandate and warns of a possible work
stoppage.

The government has drafted a new mandate to declare all mining
concessions null. Last week 587 mining concessions were revoked of a
total of 4,112 registered with the Ministry of Mines and Petroleum.

The document was delivered to assembly members of Alianza Pais
("Country Alliance," the official movement of President Rafael Correa)
this past Friday indicating that concessions held by companies in the
phase of exploration will be shelved if they haven't made any
investment before December 31st, 2007.

Also included are concessions for which conservation patents have not
been paid by March 31st for the years 2004, 2005, 2006 and 2007, as
well as those located within protected areas.

The mandate, prepared by the Ministry of Mines and Petroleum, puts a
timeline of one year on renegotiation of concessions. If in this time
an agreement is not reached with mining companies, mineral rights will
be cancelled permanently. During this period, new concessions will not
be granted and pending requests will be postponed.

Details
Reaction

Industry
President of the Chamber of Mining, César Espinosa, indicated that
this mandate puts the mining industry in stalemate and that its
content affects sector investments.

Work Stoppage
The association representative announced that the sector could decide
upon a work stoppage as a means of rejecting the mandate proposed by
the government.

Government proposal suggests canceling concessions in which no
investment has been made.

The 587 mining concessions revoked by the Ministry of Mines and
Petroleum of a total of 4,112 was only a precursor for the outcomes of
the mining mandate, drafted by the government to regulate and declare
the cancellation of all mining concessions.

The draft document, delivered last Friday to assembly members who are
part of the official Country Alliance movement by the Undersecretary
of Mines, José Serrano, states that mining concessions in the phase of
exploration that have not seen any investment before December 31st of
last year will be shelved.

Also included in this group are those affected by the administration's
decision; those for which conservation patents have not been paid by
March 31st for one or more years during the years 2004, 2005, 2006 and
2007; as well as those located in protected areas.

In article 4 it directs the Ministry Mines and Petroleum to begin a
process of negotiation over remaining mineral rights under new rules
to include royalties; environmental, technical, and economic controls;
determination of a referential price; and terms and sanctions in case
the agreement is breached.

The same Secretariat of the State will draw up guidelines for this process.

The forementioned elements are not found within the current Mining Law
or in the Law for the Promotion of Investment and Citizen
Participation ("Trole 2," approved in August 2000), in which mining
company obligations are based upon conservation patent payments and
production.

The former establishes the obligation to pay from $1 to $16 annually
per hectare according to the number of years of operation, and the
latter obliges payment of $16 annually.

The mandate, drafted by the Ministry of Mines and Petroleum, places a
one year limit on renegotiation and if an agreement with mining
companies is not reached in this time the cancellation of mining
rights will be permanent.

During this period, new concessions will not be granted and pending
requests will be postponed.

President of the Assembly, Alberto Acosta, had previously indicated in
an interview with El Universo that they were expecting the mining
mandate because there is "a hemorrhage of mining concessions for which
the State does not receive royalties."

President Rafael Correa in his report to the nation also pointed out
that they are preparing a new Mining Law, which will establish a State
Mining Corporation and that concessions will be suspended until the
new law is written up.

Aware of the government's intentions to create a new legal framework
for the activity, the Popular Democratic Movement (MPD) and Pachakutik
presented their proposals for the mining mandate to the Secretary of
the Assembly.

The MPD proposal suggests that the country be declared free of
large-scale open pit mining; designating natural sources of water as
untouchable, protected areas in which all types of extractive activity
should be prohibited; that all mining and water concessions be
returned to the state, among other aspects.

Assembly member César Grefa speaking for Pachakutik says that large
scale mining concessions between 1,000 and 5,000 hectares should be
revoked. According to him, open-pit mining activities should not take
place on lands near towns and communities.

What it is known

"A stab in the back"
President of the Chamber of Mining, César Espinosa, described the
mandate as "a stab in the back," given that the sector has agreed to
dialogue and that it has been working with the government on the new
Mining Law. He indicated that they had planned eight workshops and
that the second took place last Thursday. Espinosa restated that the
only aim of this mining mandate is to put the industry in stalemate
given that it had already become paralyzed once government intentions
became known and that now, with this decision, that investors will be
affected.

Pressure Tactics
The mining sector, which provides employment for 120,000 people, is
considering a work stoppage, said César Espinosa of the Ecuadorian
Chamber of Mining. The organization provided its reaction to the
cancellation of 587 concessions this past Friday.

Canadian Corporations
The largest mining companies in the country are Ascendant Copper,
Ascendant, Ecuacorriente, Lowell, IamGold, Aurelian Resources,
Nambija, Dynasty Metals, Cornerstone. The majority are Canadian, from
the country considered to have the best technology in the sector.

Visits to Montecristi
Since public hearings with the Assembly began, the Natural Resources
working committee has been visited by the Faculty of Mining and
Petroleum from the Central University, the National Chamber of Mining,
the mining company Ecuacorriente, the Front for the Defense of Nature
and Life, the Youth Network, the Front of Women from El Pangüi
(Province of Zamora Chinchipe) and other organizations.

Statistics: 536.387,58 hectares
The cancellation of 587 mining concessions, declared by the Ministry
of Mines and Petroleum last Friday, affects a total of 536 387.58
hectares in nine provinces of the country.

http://www.eluniverso.com/2008/01/28/0001/8/2BEABE55E76F4055A94ACBF9C7CDBD0B.aspx

http://www.eluniverso.com/2008/01/28/0001/8/2BEABE55E76F4055A94ACBF9C7CDBD0B.aspx

Mandato hara caducar las concesiones mineras

Recursos

GRAFICOS

Noticias Relacionadas

Propuesta con sugerencias para Ley

Enero 28, 2008

QUITO

Con la decision de la Constituyente se ampliara la resolucion tomada de revertir 587 concesiones mineras. El gremio de la mineria anuncia su rechazo al mandato y advierte sobre una posible paralizacion de actividades.

El Gobierno tiene listo un nuevo mandato para declarar la caducidad de todas las concesiones mineras. La semana pasada se revirtieron 587 concesiones mineras, de un total de 4.112 que tiene registradas el Ministerio de Minas y Petroleos.

El documento borrador llego a manos de los asambleistas de PAIS el viernes pasado y seniala que se archivaran las concesiones de las empresas que en fase de exploracion no hayan realizado ninguna inversion al 31 de diciembre del 2007.

Ademas se incluyen las concesiones que no hayan pagado las patentes de conservacion hasta el 31 de marzo de los anios 2004, 2005, 2006 y 2007, y de las que se encuentren en areas protegidas.

El mandato, redactado por el Ministerio de Minas y Petroleos, pone el limite de un anio para la renegociacion de las concesiones y si en este tiempo no llegan a un acuerdo con las mineras la caducidad de los titulos sera definitiva. Mientras tanto, no se otorgaran nuevas concesiones y se archivaran las peticiones pendientes.

Detalles

Reaccion

Industria

El presidente de la Camara de Mineria, Cesar Espinosa, indico que este mandato pone en jaque a la industria minera y su contenido afecta a las inversiones en el sector.

Paralizacion

El representante del gremio anuncio que el sector podria ir a una paralizacion de actividades como medida de rechazo a este mandato propuesto por el regimen.

Regimen entrego propuesta para archivar concesiones que no hayan hecho ninguna inversion.

La reversion de 587 concesiones mineras, de un total de 4.112, por parte del Ministerio de Minas y Petroleos, solo fue un preambulo para lo que regulara el mandato minero elaborado por el Gobierno y que declarara la caducidad de todas la concesiones mineras.

El documento borrador, que fue entregado el viernes pasado a los asambleistas de Acuerdo PAIS por el subsecretario de Minas, Jose Serrano, determina que se archivaran las concesiones de las operadoras mineras que en fase de exploracion no hayan realizado ninguna inversion al 31 de diciembre del anio pasado.

En ese grupo tambien se incluyen las que esten pendientes de resolucion administrativa; de aquellas que no pagaron las patentes de conservacion hasta el 31 de marzo de los anios 2004, 2005, 2006 y 2007, por anio o acumulativo; y de las que se encuentren en areas protegidas.

En el articulo 4 dispone al Ministerio de Minas y Petroleos iniciar un nuevo proceso de negociacion de los titulos mineros con las que se salven de ser cernidas, pero bajo nuevas reglas que incluyen regalias, controles ambientales, tecnicos, economicos, precio referencial, plazos y sanciones de incumplimiento.

Todo este proceso requerira de un instructivo que debera ser redactado por la misma Secretaria de Estado.

Los aspectos antes mencionados no estan contemplados en la Ley Minera o de la Promocion de la Inversion y la Participacion Ciudadana (Trole 2, aprobada en agosto del 2000), en la que la obligacion de las mineras se centra en el pago de las patentes de conservacion y de produccion.

En la primera se establece la obligatoriedad de cancelar un valor de 1 a 16 dolares anuales por hectarea minera, dependiendo de los anios de funcionamiento, y en la segunda determina la obligacion del pago de 16 dolares anuales.

El mandato, redactado por el Ministerio de Minas y Petroleos, pone el limite de un anio para la renegociacion, si en este tiempo no llegan a un acuerdo con las mineras la caducidad de los titulos es definitiva.

Mientras tanto, no se otorgaran nuevas concesiones y se archivaran las peticiones pendientes.

La llegada de este mandato fue alertada por el presidente de la Asamblea, Alberto Acosta, quien en una entrevista con este Diario indico que habra un mandato minero porque existe “una hemorragia de concesiones mineras de las que el Estado no tiene regalias”.

Asimismo, el presidente Rafael Correa, en su informe a la nacion, dijo que se esta preparando la nueva Ley Minera, que se creara la Corporacion Estatal Minera y que se suspenderan las concesiones hasta que se redacte la nueva ley.

Conocedores de las intenciones del regimen de darle un nuevo marco a la actividad minera, el Movimiento Popular Democratico y Pachakutik presentaron sus propuestas de mandatos mineros ante la secretaria de la Asamblea.

El MPD sugiere declarar al pais libre de la explotacion minera a gran escala y a cielo abierto; senialar como zonas intangibles y zonas de proteccion las reservas naturales de agua y prohibir a perpetuidad cualquier actividad extractiva; que se reviertan al Estado todas las concesiones mineras y de agua, entre otros aspectos.

Pachakutik, por medio de su asambleista Cesar Grefa, sostiene que deben caducar las concesiones mineras de gran escala que se realicen de 1.000 a 5.000 hectareas. Para el, la actividad minera no se podra realizar de manera abierta, en terrenos cercanos a pueblos y comunidades.

Lo que se sabe

‘Punialada por la espalda’

El presidente de la Camara de Mineria, Cesar Espinosa, califico al mandato como “una punialada por la espalda”, puesto que todo el sector aposto por el dialogo y se sento a trabajar con el Gobierno la nueva Ley Minera. Indico que estaban planificados ocho talleres y que el segundo se llevo a cabo el pasado jueves. Espinosa resalto que la sola intencion de este mandato minero pone en jaque a esta industria porque ya se habia paralizado hasta saber el rumbo que le daria el regimen, y ahora, con esta decision, afectara a los inversionistas.

Medida de hecho

El sector minero, que da empleo a 120.000 personas, analiza iniciar una paralizacion, dijo Cesar Espinosa, de la Camara de Mineria del Ecuador. El viernes pasado, el organismo mostro su reaccion a la caducidad de 587 concesiones.

Empresas de Canada

Las mineras mas grandes en el pais son Ascendant Cooper, Ascendant, Ecuacorriente, Lowell, IamGold, Aurelian Resources, Nambija, Dynasty Metals, Cornerstone. La mayoria son de origen canadiense, pais al que se lo considera con la mayor tecnologia en esta area.

Visitas a Montecristi

Desde que se iniciaron las audiencias en la Asamblea, la mesa de Recursos Naturales ha sido visitada por la Facultad de Mineria y Petroleo de la Universidad Central, la Camara Nacional de Mineral, la empresa de extraccion minera Ecuacorriente, el Frente en Defensa de la Naturaleza y la Vida, la Red de Juventudes, el Frente de Mujeres del Pangüi (Zamora Chinchipe) y otras organizaciones.

Cifras

536.387,58

Hectareas. La caducidad de las 587 concesiones mineras, que determino el Ministerio de Minas y Petroleos el viernes pasado, suma un total de 536.387,58 hectareas, en nueve provincias del pais.

*****ASCENDANT FINISHED IN INTAG- FIN DE ASCENDANT EN INTAG

2008-01-26T10:49:00.000-05:00

AS THE MINISTRY HAS SAID, THE REVISION OF THE CONCESSIONS WILL CONTINUE AND WILL PROBABLY RESULT IN HUNDREDS OF OTHER CONCESSIONS REVERTING BACK TO THE STATE!!

Ecuador revokes hundreds of mine concessions

Reuters
Friday January 25 2008
http://www.guardian.co.uk/feedarticle?id=7257064

(Adds deputy mining minister's comments and details, paragraphs 11-19)

By Alonso Soto and Alexandra Valencia

QUITO, Jan 25 (Reuters) - Ecuador's leftist government revoked hundreds of mining concessions on Friday, highlighting its determination to boost control over the Andean nation's natural resources.

Shares of Canada's junior mining company Ascendant Copper plunged 28 percent in Toronto after it lost a high-profile project. But the measure had little effect on some of the biggest players in the sector.

Mining and Petroleum Minister Galo Chiriboga told reporters the state was revoking 587 mining contracts because companies failed to pay fees on concessions for reserves of copper, gold and other metals.

"Based on legal norms, (the government) decided to revoke these contracts," he said.

Ascendant, which lost its Junin project, accused the government of President Rafael Correa of bowing to pressure from environmental groups.

"None of this is true ... the government was rushed into this," John Haigh, Ascendant's investor relations chief, said in a telephone interview.

Ecuador has little precious metal output, but dozens of foreign companies are exploring in the sector where nearly 4,000 concessions have been awarded.

By scrapping concessions, Correa sent a signal to the private sector that he wanted to overhaul rules for the industry. But the ally of Venezuelan's leftist President Hugo Chavez also avoided a battle with the most important foreign investors who generate revenue for the impoverished nation.

Last year, Correa moved more aggressively against foreign oil companies, ordering them to hand over almost all of their windfall profits from high prices.

Since then, Correa has shown signs of moderating his radical policies as his popularity ratings have fallen mainly due to perceptions he is too confrontational.

CORREA RULES

Ecuador's Deputy Mining Minister Jose Serrano later told Reuters that Friday's move was "not an action against mining but a move to put the sector in order."

He warned that the government could revoke more concessions later this year as part of an ongoing probe.

Those concessions will be later auctioned, but he denied speculation that revoked concessions will be later awarded to a planned state mining company.

Serrano said the move would not affect the country's biggest companies, which include Canadian miners Aurelian Resources, Corriente Resources and Iamgold Corp.

In the case of Ascendant, the government had already limited the company's work. Last year, it ordered the company to halt the Junin project's operations on charges it had violated mining regulations.

Serrano said Ascendant can appeal the order.

Friday's announcement should help appease environmentalists and residents across southern Ecuador, where most of the mining concessions are located. They have lobbied Correa to increase control over mining concessions following complaints the state was indiscriminately handing out contracts in previous years.

The government has already started negotiations with Aurelian and Corriente on their terms for doing business in Ecuador and boost state participation in current deals.

In general, it wants to rewrite rules for the industry by introducing royalties, making it more difficult to grant concessions and setting a windfall tax that should ensure more state revenue. (Writing by Saul Hudson; Editing by David Gregorio)

FIN DE ASCENDANT EN INTAG:
ES IMPORTANT SEÑALAR QUE ESTE ES SOLO EL PRIMER PASO DE LA REVISIÓN DE LAS CONCESIONES EN EL PAÍS (cz)

http://www.lahora.com.ec/frontEnd/main.php?idSeccion=673537
La reversión de 587 concesiones mineras anunció ayer el ministro de Minas y Petróleos, Galo Chiriboga, quien explicó que esta decisión se dio debido a la falta de pago de patentes de conservación, como lo establece la Ley de Minería y el Reglamento General Sustitutivo del Reglamento General de la Ley de Minería.

“No es una acción contra la minería”, dijo Chiriboga e indicó que la reversión de esas concesiones suman un total de 536.387,58 hectáreas.

Dijo que el Ministerio de Minas y Petróleos remitirá a la Contraloría los expedientes de aquellas concesiones que no pagaron sus patentes para que abra los respectivos juicios coactivos.

El ministro explicó que éste es un primer informe respecto a la caducidad de las concesiones y adelantó que el proceso de revisión continuará y en los próximos días se incorporarán nuevas concesiones mineras que serán caducadas en cumplimiento a lo establecido en la Ley de Minería actual.

Además, expresó que se revirtió las concesiones Golden 1 y Golden 2, ubicadas en Íntag y cuyo propietario era la compañía.

Ascendant Copper, debido a que las mismas fueron otorgadas al amparo del artículo 7 de una de las leyes “trole”, que determinaba que la concesión minera era un derecho real; es decir, como tener un bien inmueble, una casa o un terreno.

Esto, a criterio de Chiriboga, ha generado un manejo dispendioso de las concesiones mineras. “Una sola persona tiene cien concesiones”, aseveró.

El titular de la cartera de Minas y Petróleos aseguró que las notificaciones de las caducidades fueron ya notificadas a los concesionarios.

Darker Days Ahead for Mining in Ecuador- CONIAE se prununcia contra la minería

2008-01-09T10:38:00.000-05:00

DARKER DAYS AHEAD FOR CANADIAN MINING COMPANIES IN ECUADOR
NATIONAL ASSEMBLY TO REGULATE MINING

CONAIE SE MANIFIESTA CONTRA LA MINERIA EN ECUADOR{
ASAMBLEA NACIONAL REGULARÁ LA MINERÍA

On January 8^th, CONAIE, Ecuador’s largest and most powerful indigenous organization, signaled its intent on joining the anti-mining resistance sweeping Ecuador in a news release. The organization, composed of dozens of smaller indigenous organizations and federations representing indigenous people from all over Ecuador said, through its president, Luis Macas, that the conservation of Ecuador’s natural resources would be a major theme for discussion in their next annual meeting, scheduled for January 10^ththrough the 12^th, and, in Mr. Macas’ own words: For us, the declaration of Ecuador as a country free of mining is fundamental.

In another part of the news release Mr. Macas stated that:

In this congress natural resources will be in the discussion, especially the mining and petroleum policies that, in this country have not changed at all. I think we need to revise the contracts, we need to revise the concessions; things cannot go on as they are. As such, we insist on CONAIE’s proposal that the natural resources need to be nationalized, and should be administered by the State and should not be in the hands of transnational companies which have violated our sovereignty and the dignity of the people where the resources are found”

CONAIE, it’s worth pointing out, is the most powerful civil society organization in the country, in the past responsible for the ousting of two Ecuadorian presidents, and the adoption of major national policies.

Together with the mushrooming growth of anti-mining movements sprouting all over the country, CONAIE’s insertion in the struggle signals much darker days ahead for the future of mining development in Ecuador.

Assembly announces regulation of the mining sector
Source: EL Comercio Newspaper, 10 January 2008

"We are working on a mandate that will help fix the mining situation. With anguish we’ve seen social confrontations, a complete lack of respect of society, and lack of respect of the environment” The head of the Assembly charged with reforming the constitution pointed out (translated from article)
Mr. Acosta, the president of the National Assembly, is a well-known public figure for being opposed to opening up Ecuador to large-scale mining. In his statement on the 9th of January, Mr. Acosta also singled out the unethical and illogical issuing of mining concessions in Ecuador, and vouched to do something to address the problems.
http://www.elcomercio.com/noticiaEC.asp?id_noticia=163058&id_seccion=3

--------------------------------------------

Ecuador: III Congreso de la CONAIE

ALAI/Minga Informativa

La amenaza de las empresas transnacionales, la posicion frente a la Asamblea Nacional Constituyente y la eleccion de nuevos dirigentes son algunos de los temas que abordara el III Congreso de la Confederacion de Nacionalidades Indigenas del Ecuador (CONAIE) que se reunira del 10 al 12 de enero en la ciudad de Santo de los Colorados.

Luis Macas, presidente de la CONAIE, informo a la prensa que en el Congreso se fijara la posicion de la organizacion frente al gobierno presidido por Rafael Correa. Macas adelanto que el movimiento indigena no es incondicional al regimen y que la “agenda de la CONAIE es distinta a la del gobierno nacional”. Nuestra agenda agrego- es de lucha, nuestra agenda es de defensa de los recursos naturales, nosotros decimos la moratoria petrolera es una necesidad del pais, para nosotros declarar al Ecuador pais no minero es el punto fundamental.

Macas senalo que en “tanto en cuanto avancemos en los cambios profundos que necesite el pais, el movimiento indigena estara ahi y estaremos en pie de lucha para que esos cambios se generen y se den”. Sin embargo, el dirigente indigena enfatizo que no caeran en el juego de la derecha que trata “de convencer al pueblo ecuatoriano que aqui no se esta haciendo nada” e intenta boicotear el trabajo de la Asamblea Nacional Constituyente (ANC) que se encuentra reunida en la ciudad de Montecristi con el objeto de redactar una nueva Constitucion politica y reformar el marco institucional del Estado.

Otro tema que abordara el Congreso de la CONAIE son las estrategias para hacer realidad el Estado plurinacional, propuesta que fue presentada al presidente de la ANC, Alberto Acosta, el pasado 22 de octubre luego de una masiva movilizacion que se realizo en Quito. Tras un proceso de discusion en las comunidades de base de la Sierra, Costa y Amazonia que se prolongo por dos anos, la CONAIE elaboro un proyecto de Constitucion que recoge no solo los planteamientos de los pueblos indigenas sino de otros sectores sociales excluidos historicamente del poder.

La tesis del Estado plurinacional implica el reconocimiento de los autodeterminacion de los pueblos y nacionalidades indigenas, entendiendo esta como “el derecho que tienen las nacionalidades de elegir su sistema politico y juridico asi como su modelo de desarrollo economico, social, cientifico y cultural, en un territorio geograficamente definido dentro del marco de la nueva Nacion Plurinacional”.

Asi mismo, el evento de la CONAIE tratara sobe los recursos naturales y el desarrollo. Actualmente, se han presentado una serie de conflictos con relacion a la explotacion del petroleo, la mineria, la biodiversidad, el agua, los proyectos hidroelectricos, etc. Las empresas mineras, extranjeras y nacionales, tienen cerca de 4000 concesiones, varias de las cuales estan ubicadas en territorios indigenas. En la fase de exploracion, varias empresas han dividido a las comunidades y han provocado enfrentamientos. El gobierno de Rafael Correa ha planteado renegociar los contratos con las mineras buscando una mejor participacion economica del Estado y el respeto del medio ambiente. Las organizaciones indigenas, campesinas y ecologistas, estan opuestas a la presencia de las transnacionales basadas en las catastroficas experiencias de comunidades de otros paises latinoamericanos.

“En este congreso estara en discusion precisamente los recursos naturales, especialmente la politica petrolera y minera en este pais que no ha cambiado todavia para nada, yo creo que hay que revisar los contratos, que hay que revisar las concesiones, no pueden seguir las cosas como estan , de tal forma de que (reiteramos) la propuesta de la CONAIE de que hay que nacionalizar los recursos naturales, deben estar administrados por el Estado y no deben estar mas en manos de las companias transnacionales que han vulnerado la soberania nacional y la dignidad de los pueblos donde estan asentados estos recursos”, senalo Macas.

Al hacer un balance de su gestion, Macas senalo que se ha mantenido la unidad y se posicionado nuevamente a la CONAIE, luego de enfrentar la intromisiones de agentes externos, que, sobre todo en el gobierno de Lucio Gutierrez, intentaron debilitar y dividir a la organizacion. Asi mismo, destaco que se la logrado algunas victorias como la no firma del Tratado de Libre Comercio con Estados Unidos y la salida de la transnacional petrolera Occidental, acciones en las que el movimiento indigena tuvo una destacada participacion.

La CONAIE, de otra parte, elegira un nuevo Consejo de Gobierno cuyo mandato durara tres anos (2008 2010), incluyendo la designacion de las siguientes dirigencias: Fortalecimiento Organizativo, Mujer y Familia, Territorios y Recursos Naturales, Comunicacion, Juventud, Educacion y Cultura, Salud y Nutricion y Relaciones Internacionales. Debido a prohibiciones estatutarias, Luis Macas no podra ser reelecto como presidente.

Asamblea anuncia regulación de sector minero

11:56 | Según Alberto Acosta la Constituyente pretende establecer un mandato para regular concesiones mineras con empresas extranjeras.

OPINE SOBRE LA NOTICIA

TAMAÑO TEXTO:

4 OPINIONES

Tiempo de lectura: 1'48" No. de palabras: 272

COMPARTA:

Quito, AFP

La Asamblea Constituyente detendrá “ la hemorragia de concesiones mineras en Ecuador ” a través una ley que regulará un sector en el que están involucradas empresas de Canadá y Estados Unidos, anunció este miércoles su presidente Alberto Acosta.

Estamos trabajando en un “ mandato que ayude a arreglar la situación de la minería. Nosotros vemos con angustia enfrentamientos sociales, un irrespeto a la sociedad, un irrespeto a la naturaleza ” , señaló el jefe de la Asamblea que reforma la Constitución.

El Gobierno anunció meses atrás la revisión de unas 4 000 concesiones mineras que abarcan 2,8 millones de hectáreas, y que según el presidente Rafael Correa no pagan regalías y sólo reconocen al Estado valores mínimos por la propiedad de la tierra.

Entre las empresas vinculadas al sector se encuentran las canadienses Ascendant Copper, Conerstone, I Am Gold, Aurelian Resourses y Dinasty Metal, así como la estadounidense Lowell.

Varias comunidades indígenas se oponen a la explotación minera, lo que derivó en fuertes enfrentamientos con las compañías.

“Ha habido una hemorragia de concesiones mineras sin ninguna reglamentación, irrespetando hasta el más mínimo sentido común ” , dijo Acosta.

El anuncio coincide con los planes de varias empresas para explotar los que serían las mayores reservas de oro y cobre descubiertas en Ecuador, un país dependiente del petróleo.

El nuevo marco será adoptado por la Asamblea que asumió la función legislativa tras cesar al Congreso que controlaba la oposición, por lo que es probable que las normas sean expedidas antes de siete meses, cuando vence el plazo para la elaboración de una nueva Constitución que deberá ir a referendo.

A BRIEF HISTORY OF RESISTANCE TO MINING IN INTAG, ECUADOR

2008-01-01T00:15:00.001-05:00

MITSUBISHI AND THE WORLD BANK COME TO INTAG
(updated jan/08)

Exploration for metallic minerals intensified in the Junín area with the arrival of Bishimetals in the early 1990s. Junín is a community located in Intag, a 1,500 km2 expanse of cloud forests and farms in northwestern Ecuador (Cotacachi County, Imbabura Province). Bishimetals, a subsidiary of Mitsubishi Corporation, received financing from the Japanese International Cooperation Agency (JICA) to explore for minerals in Junín. The effort led to the discovery of large deposits of copper and other minerals in the Junín-Cuellaje project area, located in the exceptionally biodiverse Toisán Range.

Interest in the mining potential of Intag was further fanned by the Project for Mining Development and Environmental Control (Spanish acronym: PRODEMINCA), financed with a loan from the World Bank (now part of Ecuador's foreign debt) and implemented in the second half of the 1990s. The principle objective of the PRODEMINCA project was to promote industrial mining in Ecuador. It sought to achieve this goal by: a) modifying Ecuador's mining legislation to make it much more pro-industry; b) to produce maps of Ecuador's mineral deposits (thus saving mining companies the time and money in locating minerals). The World Bank has provided the same "service" to dozens of so-called developing countries. DECOIN presented a formal complaint against the Prodeminca project which resulted in a full-scale investigation by the Inspection Panel. However, by this time the project was near its end, and thus too late to modify. One of the most troublesome aspects of the project was that it prospected in seven national parks. This was just one of the many irregularities that came to light as a result of DECOIN's successful challenge.

Ecuador's mining law now offers the following incentives to mining companies: No royalty whatsoever, environmental compliance in the hands of the Ministry of Energy and Mines, the right to repatriate 100% of profits, minimal provisions designed to protect the rights of labor and communities or to mitigate and correct damage to the natural environment. The law further gives companies the right to use any and all resources within the concession needed for mining; this includes water, which is required (and polluted) in massive quantities during mineral processing. Compensation for privately owned resources (only subsoil minerals belong to the concession holder) is determined by the Ministry of Energy and Mines; farmers dissatisfied with the decision of this entity do not have the right to appeal to a court of law.

WHAT BISHIMETALS DID DURING ITS STAY IN JUNIN

Bishimetals paid little attention to the laws of Ecuador while exploring in Junín. Among the most serious violations, the company:

neglected to prepare an EIS prior to exploration (the EIS quoted below was prepared for the production phase);
neglected to inform communities about the project;
neglected to consult communities affected about whether they wanted the project;
built its latrines right on the banks of the Junín River and dumped its garbage into the river, which happens to be the major source of water for communities downriver;
damaged private property during drilling;
contaminated the Junín River during drilling, thus causing skin diseases in the local population.

Defensa y Conservación Ecológica de Intag (DECOIN), a local environmental organization founded in response to the mining threat, lodged repeated complaints about these and similar situations to the Ministry of Energy and Mines (MEM). Employees of the MEM could never find evidence of wrongdoing.

HOW MUCH COPPER IS THERE IN INTAG?
Eventually, Bishimetals discovered mineral deposits in three of Intag's seven townships (Parish governments). According to JICA, mineralized areas in the Toisán Range contain 318 million tons of copper ore, with a 0.7% concentration. In other words, the Toisán Range will yield a total of 2.26 million tons of pure copper. Molybdenum is also present in a concentration of 0.03%, and there are traces of gold and silver in the ore.

How much copper is 2.26 million tons? Not enough to satisfy the annual demand of China, whose citizens consume three million tons per year. Not even enough for the United States, where people consume 2.3 million tons per year.

ASCENDANT is saying the inferred deposit is approximately 3 times the above amount. They based this on their own "in-house" evaluation.

An interesting bit of data: on average, 75% of all minerals produced in Latin America is exported to the industrialized North. What stays in the South is the devastation resulting from the mining of those minerals. Bishimetals' scientists predicted the devastation that Junín would suffer if the copper there were ever mined.

ENVIRONMENTAL AND SOCIAL CONSEQUENCES OF COPPER MINING IN JUNIN
According to Bishimetals' scientists, the open-pit copper mine in Junín will produce severe environmental and social impacts.
As noted, the Junín concession is located in the Toisán Range. This area was recently (2005) recognized as an Important Bird Area of South America by Birdlife International. The copper lies under farming communities and primary forests adjoining the Cotacachi-Cayapas Ecological Reserve, one of the world's most biodiverse protected areas. The Toisán is exceptionally rich in water resources, upon which farmers downstream rely, and its primary forests are within two of the world's 34 biological hotspots (the Tropical Andes and the Chocó-Darien-Western Ecuadorian). Biological hotspots are areas noted for exceptional levels of biological diversity and exceptional numbers of endemic species, and their biodiversity is severely threatened. The Andean Biological Hotspot, the area where the mine would be located, is known as biologically as the hottest of all 34 hotspots. In 1997, the world renown biologist E.O. Wilson wrote a letter to DECOIN pointing out the biological importance of Intag's forests and of conserving them.
According to JICA's preliminary Environmental Impact Study (EIS), forests, farms and water resources throughout the Toisan Range would be severely impacted by the planned copper mine. Among the environmental impacts predicted by Bishimetals' scientists:
massive deforestation leading to drying of the local climate and desertification (his is almost literally what the EIS says) contamination of water sources by lead, arsenic, cadmium and chromium (metals associated with the copper ore) in levels up to 100 times greater than those naturally existing;

the flight of large mammals due to noise pollution from dynamiting the ore;
Impacts to the habitat of dozens of bird and mammal species in danger of extinction (including Jaguars, Spectacled Bears, Brown-headed Spider Monkey, Mountain Tapirs and several species of birds)
Impacts to the Cotacachi-Cayapas Ecological Reserve (similar to a Wilderness Area)

JICA's scientists also predicted a series of social impacts:
the "relocation" of at least 100 families from four communities whose farms and homes are in the way of the proposed mine and related infrastructure;
the creation of a mining town of 5000 inhabitants (the largest population centers in Intag, where the largest villages are seven parish seats, each with fewer than 500 inhabitants);
increased crime and traffic accidents;

Scientists predicted these impacts after discovering only a small portion of the copper said to exist in the Junín concessions. It is likely that if more copper is mined, more widespread and severe impacts will result.

COMMUNITY RESPONSE
The mere presence of Bishimetals in Intag produced significant impacts. People began to learn about the impact of mining on forests and communities. Then, alarmed by what they learned, people began to organize. Thus was DECOIN founded. Through DECOIN, often in coordination with other national and international non-governmental organizations (NGOs) working in the fields of human rights and the environment, residents in the communities immediately threatened and throughout Intag began to mobilize.

Local opposition to the mining project finally resulted in the burning of Bishimetal's mining camp on May 15, 1997. Hundreds of local residents from seven communities participated in the protest. The government singled out three community leaders for prosecution. Eventually the charges were dropped. Finally, after recommending that further studies be done in the hope of identifying more copper and thus making the mine more attractive to investors, Bishimetals pulled out of the project.
Victory was sweet, while it lasted.

RESISTANCE TO MINING GROWS
Between 1997 and 2002, in spite of the absence of an immediate threat, the opposition to mining in Intag increased dramatically. This was due, primarily, to the growing awareness about how human well-being requires a healthy natural environment and about the destructive nature of mining, in social, economic and environmental terms. DECOIN was key in creating this awareness, and also in creating and/or supporting alternatives to mining, such as the Río Intag Agroartesanal Coffee Growers Association (AACRI), women's craft groups and community tourism projects. During this same period, the Cotacachi County Government passed an ordinance declaring Cotacachi an "ecological county" where mining and other activities incompatible with the conservation of natural resources are forbidden. DECOIN was the instigator for this unique local law, which sets down the basic plan for a sustainable economic and social base in Cotacachi.

As a result of environmental consciousness raising, Intag was ready for the next round in the anti-mining struggle: the Ministry of Energy and Mine's (MEM) auction of the Junín concessions. In spite of protests by the presidents of the six parish governments of Intag, most community boards and more than 20 organizations working in the county, the MEM not only went ahead with the auction on August 15, 2002, but awarded the concession to Roque Bustamante, the only bidder, a trafficker in mining concessions, who paid $18,005 for the right to mine 7,000 hectares for 30 years.

The mayor of Cotacachi, with the backing of parish governments, grassroots organizations and the majority of residents, took the MEM to court in 2003. According to the plaintiff, the auction violated article 88 of Ecuador's constitution which requires that local communities be consulted before the onset of activities that are likely to affect the natural and social environment. The judge who heard the case agreed. Bustamante appealed to the nation's Constitutional Tribunal. Two of the three judges on the panel assigned to the case once again decided in favor of county government and the communities of Intag, but because it was not a unanimous decision, the case went to the court's full nine-judge bench. There, after less than 24 hours, five judges decided against the county and in favor of the defendant, which by this time is a Canadian mining firm, Ascendant Exploration, the company to which Bustamante his sold rights to the concessions in Junín while judicial proceedings to decide the legality of the auction were underway.

IN MAY OF 2005, the Municipaliy of Cotacachi presented another lawsuit in the Administrative Court to have the concessions overturned, using similar arguments.

On September 2006, the president of Junin presented yet another constitutional injunction against the Junin mining project asking the courts to stop the government from approving Ascendant's Environmental Impact Study. The final resolution is still pending.

One of the legal remedies pending is to take the case to the Organization of American State's Interamerican Commission for Human Rights.

AND NOW WE HAVE ASCENDANT
As noted, Roque Bustamante sold his rights to the Junín mining concessions to Ascendant Exploration, a company based in Quito whose main objective, according to their web page, is to "hold" mining concessions for foreigners. The parent company is Ascendant Holdings, based in the Caribbean islands of Turks y Caicos. Later on, yet another Ascendant was created: Ascendant Copper Corporation, with the objective, according to the company, of mining Junín's copper. Ascendant, it's worth noting, is too small to open a mine as large as the one in Junín. DECOIN suspects their real goal is to try to destroy the opposition to the project and then sell the concession to one of the "majors."

Ascendant's arrival has coincided with conflicts in the communities directly affected and throughout Intag. Here are just a few examples of clashes between anti-mining residents and company supporters.

Ascendant employees tried to establish a camp in Junín's community forest reserve contrary to the wishes of residents; they were forced to leave by a women's group from Junín.
Numerous death threats to anti-mining activists.

In November 2004, three anti-mining residents, including a woman who heads a crafts group, were assaulted by bodyguards employed by pro-mining ex congressman during a public meeting organized by Ascendant. The attacks occurred when the bodyguards tried to forcefully take a camera away from one of the victims containing a photo of General Villacis.

DECOIN and some of its members have received death threats and have been victims of a nasty smear campaign which includes a web page intended to discredit the environmental organization's members.

CODEGAM, the false organization created by Ascendant, bussed dozens of people to the Cotacachi Municipality in April 2005 to violently demonstrate against the Mayor for supporting the opposition to mining.

In October of 2005, CODEGAM again disrupted a public assembly called by the Garcia Moreno Parish government, forcing the president of the Parish to cancel the event.

On several occasions, CODEGAM followers blocked roads when community leaders and organizations opposed to mining tried to meet.

LAWSUITS: Ascendant initiated over a dozen lawsuits to date, in its strategy to intimidate and wear out the opposition, including one against the Periódico INTAG for a million dollars, which the company dropped a few months later.

Lawsuit presented against Carlos Zorrilla 2 days after Ascendant's camp was torched by local residents, by a man had sold his land to the company, accusing Mr. Zorrilla of threatening him and others that if they sold the land to the company they would all be killed (this too was dropped) Several lawsuits presented by the company or its employees against anti-mining activists as a result of actions taken by community members to protect their lands and their rights. In all, to date (10-06), there are six active criminal lawsuits involving 20 persons from the communities.

Completely false accusations filed by Leslie Brooke Chaplin against Carlos Zorrilla in July 2006 for supposedly instigating a crowd to steal Ms Chaplin's camera and assaulting her. It is believed Ms Chaplin was working for the company at the time of the accusation. She left for the US shortly after filing the malicious lawsuit. The false accusations led to arrest and search warrants issued against Carlos, and resulted in a police raid to Carlos' house early in the morning of 17 of October, where the police planted a gun and drugs in his house. Carlos was not home at the time of the raid and was able to go into hiding. The incident took place in front of the Ministry of Energy and Mines where about 400 Intag residents were demonstrating to pressure the Ministry to force Ascendant to leave the Intag area.

November-December 2006: Clashes with Paramilitaries (See Updates below)

July 2006 saw the presence in the Junin areas armed personnel identifying themselves as members of the Ecuadorian Army Corps of Engineers. Some of these persons were involved in death threats against a local community activist. When this was denounced to the heads of the Corps of Engineers they said they did not send anyone to the Intag area and are investigating. Decoin has denounced this new human rights violation to human rights organizations and the nation's ombudsman. This is only the latest of many instances of intimidation community and Decoin activists have suffered in the past few months.

Ascendant's strategy to convince locals that mining has included all kinds of false offers to communities and organizations. According to an earlier $16.5 million "community development proposal" mining will bring only good things to Intag. The project includes 30 kilometers of road building and maintenance; new bridges over two rivers; a fully equipped and staffed health clinic; an ambulance; 1,000 new homes; computers for 37 grade schools; a new high school, and training in organic agriculture. Needless to say, the project was tied in to the community's acceptance of the mining project.

TO DO SOME OF THEIR DIRTY WORK, Ascendant created the false "community development" organization, CODEGAM, which has been accused of all kinds of divisive and illegal actions by local residents. CODEGAM publicly admitted in 2005 that all their funding came from Ascendant Copper Corporation (July 2005 El Comercio Article). As of August 2006, Codegam was inoperable because of in-fighting, and in early 2007, it broke off relations with the company, citing unwillingness to comply with previous agreements with the company. As of September 2007, CODEGAM was replaced by ODI, another company-made "development organization".

POLITICAL ACTIVITIES. In one of their first assemblies, CODEGAM publicly called on its followers to not respect the Mayor of Cotacachi; called for the creation of a new Municipality; asked Ascendant to stop all negotiations with the Municipality of Cotacachi; asked that Mr. Zorrilla (at the time DECOIN's president) and three other foreigners be expelled from Ecuador. Afterwards, using Ascendant funds, they paid for soccer uniforms with a message supporting the creation of a new Municipality. Furthermore, there is evidence that Ascendant gave money to a political party in the Intag area who supported mining.

INTERNATIONAL CAMPAIGN: Local opposition is not the only used against the mining project. In May 2005, DECOIN, along with Friends of Earth Canada and Mining Watch Canada presented a claim against the mining company for violation of the OECD's Guidelines for Multinational Enterprises. In January of 2006, we decided to withdraw the complaint because we felt there was a total lack of willingness and transparency in the process carried out by Canadian authorities.

The Toronto Stock Exchange: In spite of a determined campaign by DECOIN, Friends of Earth Canada and Mining Watch Canada to alert the regulators in Canada in charge of overseeing listing in the Canadian Stock Exchanges of all the irregularities related to Ascendant Copper Corp, they allowed it to go public in November 2005. This includes dozens of official documents from community presidents, the Mayor of the County of Cotacachi, a prestigious US law firm, pointing out innumerable instances of misinformation in the prospectus meant to mislead potential investors. To illustrate, the prospectus wildly under reported the magnitude of the opposition by most local communities and the government of Cotacachi to the mining project and to the presence of the mining company.

Chalguayacu Bajo, December 10th 2005
The fact is, that the opposition is so fierce that it led to the burning down of Ascendant's mining camp on the 10th of December 2005. Close to 300 local residents from approximately 15 communities gathered in Chalguayacu Bajo that morning and assumed all responsibility for the collective action. No arrests were made, but Ascendant officially asked the district prosecutor to investigate, and named 24 local residents as possible guilty parties. In addition it named DECOIN's Carlos Zorrilla as the brains behind the torching of the camp. It's important to point out that no one was hurt during the deed, and absolutely nothing was stolen from the premises. To date (August 2006), the legal process is still in the investigative phase, and the case may soon go to court, with four of the most effective community activists still named in the lawsuit.

TO DATE and thanks to local opposition, Ascendant Copper Corporation has been unable to access the key mining areas to carry out the Environmental Impact Study necessary for them to do the exploration. Every time they've tried, community members from Junín and other nearby communities have stopped them. In early January 2006, the company claimed they were ready to undertake the long-awaited Environmental Impact Studies by first going to the communities to get their input. However, the communities most affected by the mining project have stated they do not want Ascendant on their lands (see updates below).

April 2006: The communities have blocked Ascendant from going into the communities most at risk by the project, even as Ascendant is trying to socialize its environmental impact study, which was done without the communities knowing about it. The communities hold that the company responsible for it didn't do it in the mining site, since it's an area controlled by the community of Junin. Daimi Services was hired in January to convince the people of the benefits of the project and to socialize the EIA. However, there has been dramatic resistance to the presence of Daimi. In February, communities blocked a forum organized by Daimi and Ascendant. The previous week, two Daimi employees were taken to Junin by community activists as a way to pressure Daimi to leave the area. No one has been arrested as a result of this latest community action, though five activists were accused by Ascendant of kidnapping. It's worth noting that the indigenous community of Sarayaku officially asked Daimi to leave their territories due to the aggressive way they executed the community relations programs, and there were accusations of bribery.

CODEGAM officially broke relations with Ascendant on February 17, 2006, and at one point wanted to join with the anti-mining forces to force Ascendant to leave Intag. CODEGAM called on several government institutions to investigate Ascendant, and to revoke its mining concessions.

May 20th 2006, nearly 800 men, women and children, joined all seven Parish presidents, as well as legitimate representatives from most of Intag's communities and NGO's in a regional Assembly, where firm anti-mining measures were adopted, including asking Ascendant to leave Intag. The company, at its own peril, has chosen not to abide by this massive demonstration of rejection.

SUCCESSFUL MARCH TO QUITO.
On July 12 and 13th 2006, approximately 600 intag residents traveled to Cotacachi, and then to the nation's capital, to march to the Ministry of Energy and Mines and the offices of the company, to let the Ministry and the rest of Ecuador know they will not allow mining in Intag. The protesters were led by Parish government presidents and the indigenous Mayor of Cotacachi. The Minister met with a delegation and promised to make sure the company was complying with all laws, and force it to abandon the project if not. To date (10-06), the Minister has not issued any statement regarding promises made.

August 2006: As stated above, several lawsuits and administrative legal processes are being presented by DECOIN as well as community and Parish presidents to declare the concessions illegal, and to legally challenge other aspects of this illegitimate project. Currently, the company is socializing what they consider to be their Environmental Impact Statement for their Junin project, in spite of the presence of several glaring illegalities connected to it.

September 2006: The government of Imbabura Province voted to ask the national government to stop Ascendant from carrying out any exploration or exploitation activities within the Junin mining concession. With this decision, all local governments having any jurisdiction over the Junin mining project have publicly announced their opposition to Ascendant Copper Corporation's mining project.

Using the courts: In an effort to intimidate the opposition, approximately 12 criminal lawsuits have been filed by Ascendant and/or its employees against approximately 50 community members opposed to the mining project. As of April 2007, the company has lost all the cases that have reached the courts.

OCTOBER 2006: In October 2006, 19 heavily-armed police raided the home of Carlos Zorrilla based on trumped up charges filed by a person believed to be a Ascendant employed. The police took advantage of the raid to steal hundreds of CD's with personal information, as well as information on Carlos' environmental work with DECOIN. One of the police also planted a gun and some drugs in his home, leading to other criminal charges. Carlos avoided arrest until the arrest warrant was revoked, and as of April 2007, all charges have been dropped for lack of evidence.

For accounts of the police raid see:

EVENTS OF NOVEMBER AND DECEMBER 2006
November 2006
On November 1st, about 50 persons carrying machetes, tear gas and attack dogs, tried violently to go into the Barcelona-Cerro Pelado area. Despite the risk of confronting paramilitaries, who used the tear gas against unarmed community members (including a 3-year-old child) the communities stopped them. In the struggle, Vicente Quiguango, of the Villaflora community was run-over by a vehicle belonging to the company. Some of the paramilitaries in this incursion would again be seen in Intag 30 days later.

THE USE OF PARAMILITARIES
On December 2, 2006 several dozen armed guards tried to gain entry to Ascendant's concessions. They were stopped at the Junin road control, which was manned by community members, and were told they could not proceed any further. Without any provocation whatsoever the guards, led by the international security firm Honor and Laurel, used pepper spray and fired their guns indiscriminately at the unarmed community members, wounding one of them in the leg (the attack was videotaped and photographed). The attack was repelled by the communities, and three days later 56 of the estimated 120 armed guards thought to be in the area, were captured by over 100 of the nearly 300 Intag residents who by then had arrived to Junin from all parts of Intag to support the community. The guards were all ex-military. The company also hired an army helicopter to provision the guards with food.

Ascendant later claimed they didn't hire the guards, who the Quito-based human rights organization CEDHU, labeled paramilitaries, but that they were hired by Falericorp, a company contracted by Ascendant to supposedly work on agricultural projects. Later it was found that Falericorp was not only not an agricultural company, but that they were operating illegally in the country since 2004. The same was discovered about Honor and Laurel, and most organizations or companies Ascendant's hired to work in Intag.

More aggressions: On the 6th of December, a large delegation composed of nearly 300 persons from Intag and the highlands of Cotacachi along with the Mayor of the county and the governor of Imbabura province were viciously attacked by crowd of about 50 pro-mining persons, when they were on their way to the community of Junin to officially receive the captured guards. The pro-mining crowd threw thousands of rocks, Molotov cocktails, burning tires and shot at the delegation, wounding several of them (including two Decoin representatives) In order to avoid an escalation of the violence, the trip was cancelled. Three days later, representatives from the national government, as well as the Mayor of Cotacachi, arrived by helicopter in Junin and the 56 guards were turned over. Later, as some of Intag's residents were leaving this event in Junin, pro-mining personnel attacked them, wounding three of them with machetes, and sticks.
(For more information on the events that took place November and December 2006, please see HYPERLINK "http://www.decoin.org" www.decoin.org)

MORE UPDATES:
March 2007: Community representatives turned over the guns taken away from the paramilitary force in December of 2006 to police officials in the village of Chalguayacu Alto. One of the police officials expressed his grave concern over the possibility Ecuador becoming another Colombia in light of Ecuador of the paramilitary presence.

April 2007: In March, the opposition peacefully took over Ascendant's camp in Chalguayacu Bajo, and the company was forced by the government to reduce its workforce by 70% as a consequence of community pressure. The communities then turned over the guns confiscated from the armed paramilitaries to government officials, and agreed with the government to take down its road controls. The company, however, is still prohibited by the communities from entering the mining site. Ascendant's Environmental Impact Study has not yet been approved.

Near Lynching
On July 2007, Polivio Pérez was nearly lynched in Garcia Moreno by a mob comprised, in part, of Ascendant Copper employees. He was saved by the presence of the police, but the mob destroyed his motorcycle. Based in part on this incident, Amnesty International issued an Urgent Action request, calling attention to the threats that anti-mining activist face in Intag. As of January of 2008, Polivio is under 24 hour police protection.

Lawsuits: As of September 2007, charges against Carlos Zorrilla were dropped for both, the original robbery, and illegal possession of firearms charges due to lack of evidence. The drug issue is still pending, however (the District Attorney has not charged him, and has 2 years to decide). Two other court cases were lost by the company in Imbabura courts and were ruled inadmissible- so that, to date (Jan 2008) the company and its followers, has lost all of the court cases it has brought against community members.

September-October 2007: In September, the Ministry of Mines and Petroleum ordered Ascendant to suspend all its activities, including its agricultural work within its Intag concessions. The suspension is still in effect, and it forced Ascendant to fire all of its officials employees working in Intag. There are a few locals who we believe are still under contract with Ascendant, but no way to prove it. Nevertheless, the tension was reduced drastically.

In October, the company lost title to 17 of its properties around the Junin area when a government institution annulled the ownership rights due to illegalities discovered as part of an investigation launched by the government's Anti-Corruption Commission. The company lost perhaps close to a million dollars and nearly 3,000 acres (1,200 hectares) of land they had purchased to try to gain access to the concessions.

Smear Campaign: In the meantime, the company continues with its smear campaign against organizations in Intag, but specially targeting Decoin and Prodeci (Prodeci is a Spanish-funded NGO). Likewise, Carlos Zorrilla and Polivio Pérez were targeted in late 2007 for a personal smear campaign, which involved the production of a calendar with a strong anti-Decoin message.

BAD COMPANY
In addition to all of the above, there are many other reasons to view Ascendant and its crew with a healthy dose of skepticism. These include:

Chris Werner, Ascendant Exploration's first Chief Financial Officer, was fined by the U.S. Securities and Exchange Commission for illegal trading of stocks in 1998. According to the SEC's decision, Werner was involved in a company called Aqua Buoy with Joseph and Constance Pignatiello, in which the couple named "made materially false and misleading statements concerning the Company's financial condition and sold their own Aqua Buoy stock at inflated prices."

It is probably only a coincidence that Mr. Werner became involved with a company whose estimate of its assets (copper ore) some believe to be inflated. To whit, though it has yet to do any studies beyond those done by Bishimetals, Ascendant claims that there is more than three times the copper ore estimated by the Japanese company. According to a letter written on December 15, 2004 by Dr. Al Gedicks, addressed to the Finance and Audit Committee of the Toronto Stock Exchange, Ascendant's figure is so far beyond the original estimate "as to raise serious questions of misleading and inaccurate information provided to stockholders."
Among retired Ecuadorian military personnel once associated with Ascendant's top management is Gen. César Villacís, a man who believes that those in favor of human rights, indigenous rights and workers' rights are part of a "triangle of subversion;" It comes as no surprise that the general is a graduate of the School of the America's, now located in Fort Benning, Georgia, where some of Latin America's worst human rights violators have been educated, and that he was also involved in an illegal operation in 1997 related to a US petroleum company. He was also mentioned in a newspaper report (Nuevo Herald), as having taken part of illegal armament purchasing from Colonel Gaddafi ((note: as of Sept 05 Villacis was no longer working in the Intag area)) Paul Grist's father is an adventurer-fortune seeker with prior dealings in Hampton Resources a Canadian mining company that owned concessions in the same area Ascendant Exploration now has concessions in Ecuador's Amazon's. The company went broke in 2004. Mr. Grist is one of Ascendant's founders.

And then we have former congressman Ronald Andrade. Andrade, until early 2006 when he broke relations with Ascendant, was the mining company's most vocal defender. His company-contracted bodyguards have been the protagonists of some of the incidents described above. Some of CODEGAM's members have been involved or charged with several instances of intimidation death threats, and violent actions against public officials (Municipality of Cotacachi), etc

ALTERNATIVES TO MINING
Communities in the mining area and throughout Intag are developing alternatives to mining. For example, Junín owns a nearly 3,000 hectare forest reserve, the centerpiece of its Community Ecological Tourism project (located right over the mineralized area). Fifty men and women from two communities run the project.

AACRI- the Coffee Project. Junín, as well as the rest of Intag, also benefits from a shade-grown, fair trade coffee project, carried out by AACRI, a coffee grower's association started by DECOIN in 1998, but now independent. AACRI has approximately 300 members growing sustainable coffee.

WOMEN'S GROUPS: Several groups have organized since the Mitsubishi camp bonfire seeking to institute their own form of development. This includes several women's groups working in sisal handicraft, hand-made soap, etc.

TOISAN SOLIDARITY STORE: Another initiative born directly from this challenge, was the creation of the Toisan Solidarity Store. The Store, situated in Otavalo, sells products only produced by organized groups in the Intag area, and under FAIR TRADE premises.

These are only a few of the many sustainable projects residents have developed in response to the mining threat. These initiatives, and the model of sustainable development being created in Cotacachi County, are supported by a County ordinance, which in 2000, declared Cotacachi County the first Ecological County in Latin America. The Ordinance promotes local, community-based development, full respect for human rights; sustainable use of renewable resources and cultural and biological diversity, to mention a few of its objectives. In other words, a copper mine threatens far more than four communities, primary forests, endangered species and pristine rivers.

Community members from several communities adjacent to the mining area have expressed their intent to continue stopping them, and keep doing whatever it takes until Ascendant leave.

FOR MORE INFORMATION ON THE ISSUES DISCUSSED IN THIS SUMMARY, check updates on www.decoin.org, and:

Ascendant Alert
Intag Solidarity Network
Periódico INTAG's web page

INFORMATION ON ASCENDANT: Ascendant's web page and more company info.

If you would like to get in touch with us, write to:
DECOIN: decoin@hoy.net

There are many other excellent articles on this issue out there in cyberspace: just google decoin and intag

Junin's email is: ecojunin@yahoo.es *
* For English, contact Decoin. Also note that the Community Council and Junín cannot regularly check their emails (no nearby phones). You can copy us and we'll try our best to contact them.

DEFENSA Y CONSERVACIÓNDECOINECOLÓGICA DE INTAG
Casilla 144 Otavalo, Imbabura Ecuador
www.decoin.org
decoin@hoy.net
Tele/fax: 593 6 264 8593

DECOIN, is a grass-roots environmental organization founded in the Intag region in 1995. All members of DECOIN live in Intag. Our main objectives are: to conserve the area's unique natural resources, with emphasis on forests, biodiversity and water, and to promote and support sustainable productive initiatives. One of our most important work has been building and supporting a strong opposition to mining activities by working closely with communities, organizations and local governments.

Is Ascendant Keeping the Titanic Afloat?

2007-12-11T07:32:00.000-05:00

Ascendant Copper: Trying to Keep the Titanic Afloat?

The project is dead. And no amount of slick public relations campaign can bring it back.

A complete stop-work order for their Junin mining project, their so-called “nest egg”;

A nest egg with 17 less properties which the company lost recently (see prior blogs)

No environmental impact study- not even on the pipeline..

A self-evaluated drilling program analysis from their other Ecuadorian mining projects,

A possible buy-in with another mining company with no record of production, and a mine not worth throwing money on

A government hell-bent on totally revising the mining legislation to drastically reduce profits for the industry, much like it did with the petroleum industry (the last move was to take 99% of the industry’s windfall profits)

All local governments, and communities still adamantly opposed to the Junin project.

Recent archeological investigation confirming previous reports of a rich archeological zone within the Junin mining concessions (mining is illegal in archeological areas)

National mobilization against large-scale mining growing all over Ecuador

And from Ascendant and others like it, a lot of hype but nothing concrete and independently verified to show to the world.

In the meantime, the millions keep being spent, and no doubt the company will soon move to try to sell more shares to try to keep this Titanic afloat.

Does the name Bre-X mean anything?

Carlos Zorrilla

Ascendant loses 17 Properties in JUNIN / empresa pierde 17 propiedades en Junin

2007-11-23T09:49:00.001-05:00

Ascendant Loses 17 Properties in JUNIN / Empresa pierde 17 propiedades en Junin

On October 10^th, the General Secretary of Ecuador’s Land Reform Institute (INDA) announced that the institute extinguished the legality of 17 of Ascendant’s properties in the JUNIN area. The land will return to government ownership.

The Institute had adjudicated the untitled land to third parties, which then promptly sold the land to the company in violation of the law. The decision by INDA points out several illegalities associated with the transactions, including violation to the country’s Constitution. INDA also pointed out the company’s involvement in pre-purchase agreements with some of the sellers. The land in question allegedly sits over the copper deposit.

In a previous report based on an on-the-ground inspection, INDA confirmed that a large portion of the adjudicated land was covered in primary forests and too steep for agricultural use. INDA can only adjudicate land for agricultural purposes. Furthermore, INDA found out that the properties in question were being managed by the community.

In its 2007 third quarter reports, the company stated that it had spent $1,900,000.00 in land purchases around Junin, and that it was planning to spend an additional $193,000.00 for land acquisitions……..

ASCENDANT PIERDE 17 PREDIOS EN INTAG DEBIDO A ILEGALIDADES

Con fecha del 10 de Octubre, en el expediente número 13654, el Secretario General del INDA, Pablo Nieto Montoya RESUELVE DECLARAR LA EXTINCCIÓN de 17 predios rurales que fueron vendidos a la empresa Ascendant Copper por supuestos moradores de la zona de Intag. Los predios se encuentran el los sectores de Junin Alto, Parroquia García Moreno, Cantón Cotacachi, y abarcaba una importante área del yacimiento cuprífero de la empresa transnacional.

Uno de los causales que provocó la extinción de derechos fue el hecho que las tierras fueron enajenadas inmediatamente después de la adjudicación por parte del INDA, lo cual comprueba que las adjudicaciones fueron tramitadas con fines de lucro, lo cual viola la Ley del Inda. Además, se comprobó que en algunos casos, los adjudicatarios habían celebrado convenios de compra y venta con la empresa minera canadiense, Ascendant Copper- una confirmación más del doloso tráfico de tierras que impactado a la zona de Intag.

Adicionalmente de las violaciones a la Ley de Tierras Baldías y Colonización la providencia señala que las adjudicaciones violaron el artículo 119 de la Constitución Política de la República.

La providencia indica varias irregularidades contenidos en los trámites de adjudicación- entre los cuales se encuentra una divergencia significativa entre la información contenida en los trámites de adjudicación, y la realidad en el campo. Cabe señalar que en un previo informe del INDA se comprobó que la gran mayoría de la superficie adjudicada se encontraba cubierta por bosques primarios y no apto para la agricultura.

La providencia señala que el director del INDA en Quito fue responsable de autorizar varias de las adjudicaciones sospechosas.

CON GANAS DE SEGUIR COMPRANDO....
DECOIN denuncia que Ascendant Copper Corporation, según documentos publicados en el sitio web de la misma empresa, dice haber invertido 1,9 millones de dólares en adquisición de tierras en el sector de JUNIN, y que tiene dado decenas de miles de dólares en adelantos para adquirir más propiedades. Adicionalmente, admite que, hasta el 30 de Septiembre del año en curso, tenía presupuestado invertir otros $ 193.000,00 para comprar nuevos predios. El tráfico de tierras provocado y financiado por esta empresa transnacional, que hoy se comprueba, es culpable, en gran medida, del caos y convulsión social últimamente experimentado en la zona de Intag.

Nuestra organización, al igual que todos los gobiernos locales afectados por la presencia de Ascendant Copper en Intag, y la gran mayoría de comunidades y el resto de organizaciones en la zona de Intag, nos preguntamos hasta cuando va el estado seguir permitiendo los atroces atropellos y violaciones a la Constitución, leyes y de los derechos humanos por intereses transnacionales.

Comisión de Prensa,
DECOIN
decoin@hoy.net
www.decoin.org

Ascendant's New Creative 3rd Quarter Reports

2007-11-16T12:42:00.000-05:00

ASCENDANT'S NEW CREATIVE 3RD QUARTER REPORTS

It's best to start by pointing out that Ascendant's 3rd quarter financial report report is unaudited. There is no sign anywhere of an auditing firm taking responsibility for it. This helps to understand what follows.

Regarding the Management and Discussion section of the report, it can be summarized as an excersise in ommission. Here's why:

Losses and more losses. 7.8 million dollars spent during the first 9 months of 2007. Total losses since November 2004, 17 plus million. This merits a bit of analysis. All this money raised from Canadian investors and, after 3 years on the scene, the company can’t even get their Environmental Impact Study approved for Junin, their nest-egg concession? Unfortunately, Canada seems to be an unending source of easy money to keep funding dead-end projects.

The list of omissions and misinformation is a bit too long to go into detail, but let me present some of the more galling ones:

SUSPENSIONS: The company says that work has been suspended… but what it doesn’t tell you is that, on September of this year, it was ordered by the Ministry of Mines and Petroleum to halt all of its activities in the Junin project. There is no timetable at all for the company resuming activities, if it is even ever allowed to do so.

Mining or Agriculture?. Some of you out there may be confused by the following statement made on page 10 of the report:

The Company has met with various ministers from the MMP to continue discussions of negotiations with local communities and authorize to advance the Junin project. At this time, all mining-related activities have ceased including farming until clarification and negotiations have been reached.

If you are wondering how farming could be considered a mining activity- you are not alone. It’s not, of course. And here, you thought you were holding stocks of a mining company! Too, there is no negotiations going on at all with communities because the company was ordered to cease all of its activities, including negotiating with communities (which could be seen as public relations activities).

What is more relevant to ponder is the reasons behind the drastic suspensions. Look back to our earlier blogs to discover why, especially those dealing with the violence and use of “paramilitary outfits” financed by the company against communities back in November and December of 2006…

COMPANY ASSETS AT RISK. The company is suppose to inform its investors of anything that may be a risk to the their assets. Ascendant considers 1.9 million dollars they say they’ve spent to buy land around JUNIN as assets. So, why did the company not report on the latest and devastating report from the Institute for Agricultural Development in which it found a number of illegalities connected to 18 of properties held by Ascendant around JUNIN? The INDA investigation and report was prompted by accusations from the nation’s Anti-Corruption Commission, regarding illegalities with these properties, and it called for the properties to revert back to the state. The INDA report confirmed the illegalities, and identified some new ones.

Among the findings was that the overwhelming majority of the properties in question had primary forests on them, and were completely unsuitable for agricultural use (which is the only land INDA is allow to adjudicate). In the past, Gary Davis has said that the company’s concessions had been severely logged.

EXPLORATION ANYONE? One has to read the section on expenditures for exploration a couple of times to understand what is being said. It apparently says that during the last 9 months, the company spent 4.5 million dollars for “advancing exploration” costs. This is what the report claims:

The primary reason for the increased net losses for the 2007 periods compared to the 2006 periods was due to higher expenditures on exploration and in particular on the Chaucha property.

Yet only 1.57 million, of the 4.5 million dollars for exploration was actually spent on exploration activities; and this on its Chaucha property (did anyone wonder why this time they did not report on the exploration results from Chaucha?). No exploration activity whatsoever has been undertaken in JUNIN, and they do not reveal what they spent the other 3 million dollars on, except to point out that they’ve spent $250,000 for preliminary exploration at Telimbela (but they fail to inform if the company has a legally approved Environmental Impact Study for exploration at this site- which is not even theirs) [this is still an improvement over the outrageous claims of millions of dollars spent on exploration activities in Junin in prior reports)

Very strange. But not as strange as the following:

On page 8, the two directors responsible for the report claim that:

On November 27, 2006 the Company entered into an agreement with the Organization for the Development of Intag, Parish Council of Garcia Moreno and the Women’s Association of Garcia Moreno, representing over 90 local communities in support of Junin development…

Here’s what they didn’t tell you:
The agreement with the Parish Government of García Moreno was legally annulled by the full Parish Government (not council) 8 days after it was signed. This was mostly due to the use of paramilitaries against Garcia Moreno communities. There are around 15 women’s groups in Intag: 14 of those oppose Ascendant’s presence in Intag. Furthermore, the legal document annulling the agreement with the company also discredits the Organization for the Development of Intag, saying it does not represent anyone, much less the 90 imagined communities “in support of Junin development” (Junin development is pretty vague, you have to admit)

But beyond the question as to the meaning here, there aren’t 90 communities in Intag. And if they want you to believe that those 90 non-existent communities are in favor of the mining project, it would be a gross lie, even if they did exist. After all the accompanying violence generated by their presence, they’d be hard put to prove that even 10 communities in Intag support the company’s mining project.

An interesting and very relevant piece of information to the company’s incredible claim regarding the presumed support, is that all seven local governments in Intag, as well as the Municipality of Cotacachi and Imbabura’s provincial governments have all publicly expressed their rejection of the mining project. This is easy to prove, since these governments have signed documents expressing their rejections. Where are the signatures of the legal representatives of the 90 ghost communities supporting Ascendant’s version of development of Junin?

There’s a lot more of questionable things, like the very high costs of telecommunications (average $ 10,000 per month), or the unbelievable high rents, and so on. But, we’ll save this for another time. For now it’s enough to note the disparities pointed out above, and to keep in mind that:

· After 3 years of Ascendant’s presence in Intag, no exploration has taken place in Junin

· Ascendant is not allowed to carry out any activities whatsoever within its Junin concessions

· The company has not resubmitted another environmental impact study after their last one was rejected nearly 12 months ago by the government

· The company is seriously at risk of losing at 18 of its properties around Junin

· The latest government report confirmed the presence of primary forests in the Junin mining area- something the company has denied in the past. Cotacachi’s Ecological Ordinance prohibits mining in primary, or native forests.

· Water: This week IAMGOLD lost 30% of their concessions because its Quimsacocha project threatened streams, rivers and lakes. The Toisan Range, where the Junin concessions are located, is also exceptionally rich in pristine water resources. IAGOLD’s land will be turned over for public use and conservation purposes; the first of many such concessions revokations to come

· The mining area is also rich in archeological sites. Ecuadorian law prohibits mining in these areas.

· The opposition from all local governments, communities and NGO’s is still as firm as ever

It’s no wonder the company is looking to distract attention from its woes in Ecuador by buying non-producing mines in the US!

DECOIN 16 November 2007

ILLEGAL LAND TRAFFICKING CONFIRMED /PRIMARY FORESTS ADJUDICATED

2007-10-30T20:26:00.000-05:00

Gross Irregularities found in Connection with Ascendant Copper Corporation’s Properties in Junin (ESPANOL ABAJO)

On October 22, Ecuador’s Institute for Agrarian Development (INDA) made public its report of their in-situ inspection of17 of the Ascendant’s properties in the Intag area (JUNIN PROJECT) The investigation came in response to a denunciation of illegal land trafficking in the Junin area involving Ascendant Copper Corporation, made by the country’s Anti-Corruption Commission (http://www.comisionanticorrupcion.com/Biblioteca/boletines/BOLETINDEPRENSANo320.pdf)

Based on the information pointing at gross illegalities in connection with adjudication of state land meant for agricultural use to benefit Ascendant, the Anti-Corruption Commission made several recommendations, including that the land illegally acquired by Ascendant revert back to state ownership.

Among the findings and of the INDA report:

1) Most of the land inspected is covered in primary forests

2) The adjudicated land is very steep (over 90% slope), and unusable for agriculture (INDA is only legally able to adjudicate land that is apt for agricultural use)

3) At least one of the inspected lands may be within the Chontal Protected Forest

4) There was a lack of due diligence by INDA officials who adjudicated the land.

5) The data reported by Inda employees as part of the adjudication process has no relation with reality on the ground.

6) Some of the land now supposedly owned by Ascendant was previously sold to the community of JUNIN

7) Ascendant has not taken possession of its lands, which are in the hands of community members from Cerro Pelado and Junin- who expressed their desire to conserve the forests, since it is suitable apt for agriculture.

In essence, the INDA report confirms- and even expands on- the Anti-Corruption Commission’s findings.

A parallel report prepared by community members and two Intag Solidarity Network members, who accompanied INDA’s representatives on the inspection, mentions that other adjudicated properties are found within the Chontal Protected Forest Reserve; and that a large property (over 270 hectare) that should have been inspected by INDA was not. Both reports make the same observation that most of the adjudicated lands showed no sign of anyone ever possessing or working the properties, which clearly violates INDA laws. Also, it is illegal for INDA to adjudicate primary forests, or land not suitable for agricultural purposes. If false information is given to INDA employees to obtain legal title it is, likewise grounds for annulling the adjudication (the land would revert back to the national government)

As soon as we have the official reaction from the Executive, which should not take too long, we’ll be posting on the site.

COMPROBADO TRÁFICO DE TIERRAS DE ASCENDANT

EL DÍA 22 DE OCTUBRE, el INSTITUTO DE DESARROLLO AGRARIO emitió un informe de su investigacion de 17 predios recientemente adjudicados en la zona de Intag que fueron a parar en manos de la empresa transnacional minera Ascendant Copper Corporation. La investigación del INDA fue en respuesta a un informe de parte de la Comisión Anti-Corrupción de Julio del año en curso, donde se descubrió señas de ilegalidades en el traspaso de propiedades adjudicadas a supuestos posesionarios de tierras que yacen encima de los yacimientos de cobre de JUNIN, Zona de Intag, Cantón Cotacachi http://www.comisionanticorrupcion.com/Biblioteca/boletines/BOLETINDEPRENSANo320.pdf

El informe del INDA confirma la existencia de ilegalidades e incumplimientos por parte de funcionarios del INDA en la adjudicaciones de predios en la zona de Intag a favor de la Ascendant Copper Corporation. La empresa minera, según la Comisiónm Cívico de la Corrupcíon, habría adquirido 56 propiedades en la zona de Intag, que abarcan a miles de hectáreas de áreas agrícolas y forestales.

Entre las conclusiones y hallazgos del informe consta:

1) "No hubo una investigación prolija en la toma de datos técnicos de campo por parte del perito inspector" .
2) La mayor parte de los predios visitados por la delegación del INDA se encuentran cubiertos por bosques primarios
3) "Los predios adjudicados por el INDA no son de vocación agrícola" , consta literalmente en el informe.
4) "Los datos que sirvieron como para base para las adjudicaciones en su mayoría no concuerdan con la realidad comprobada en la inspeccion
5) Exepto en 4 casos, no existen ninguna señal de ocupación, posesión o uso de los predios (mostrar la poseción es requisito indispensable para cumplir con la adjudicación)
6) En una propiedad adjudicada de 98 hectáreas tan solo 2 hectáreas pasto, el resto, 95.79 hectáreas, consiste de bosque primario.
7) Se presume que por lo menos 2 de las propiedades adjudicadas se encuentran dentro del Bosque Protector el Chontal- lo cual expresamente viola la Ley
8) No se cumplió con los planes de explotación de los predios propuestos en los trámites de adjudicación
9) Se estableció que los predios se adquirieron con ánimo de lucro- lo cual también cotraviene la Ley del INDA

Concluye el informe resaltando que la empresa minera no ha tomado poseción de las tierras adjudicadas, y que más bien, estan en manos de los comuneros de Junín y la comuna de Cerro Pelado, quienes tienen la idea de conservar sus bosques y que se encuentran en trámite para declararlos como áreas de reservas.

Por otro lado, moradores de la zona de Intag aprovecharon la presencia de funcionarios de INDA para denunciar irregularidades relacionadas a otras propiedades recientemente adquiridas por la empresa minera, en especial una propiedad de 273 hectáreas que estaría cubierta por bosques primarios. En su informe paralelo los moradores y dos observadores internacionales de Intag Solidarity Network, denunciaron que Por otra parte, el informe da fe de denuncias de los moradores del sector que varias de las poseciones compradas por Ascendant Copper Corporation como propiedades adjudicadas habrían sido previamente vendidas a la comunidad de Junín.

COMISIÓN DE MINERÍA
DECOIN
Defensa y Conservación Ecológica de Intag
PO BOX 144
Otavalo, Imbabura
Ecuador
www.decoin.org
decoin@hoy.net

Holding Steady on Misinformation: II part of Ascendant's Claims

2007-10-25T06:21:00.000-05:00

Holding Steady on Misinformation: II part of the Spin

Sure enough, The Resource Investor’s latest news release (10/19) on Ascendant Copper’s operations in Ecuador did not disappoint. The first part of the 2-part spin left us with some truly impressive whoppers- such as saying that the latest government suspension of its activities in the Intag region was similar to the government’s “other suspensions”. Another good one was a quote from one of its directors to the tune of that the company was sitting on the biggest or second biggest copper deposit in the world. Then, the company lied about the December 2006 violent confrontation in which dozens of armed thugs labeled as paramilitary force by a prestigious Human Rights organization shot at defenseless community members. The thugs were paid for by Ascendant, and the confrontation did not take place in their land, as was alleged. Finally, and like a broken record, the company tried to blame all their woes in their Junin concessions (their “nest egg”) to the actions of “an ecological organization” (guess who?)

On the second installment of the spin, the company repeats its unbelievable claim that they are sitting on one of the world’s biggest copper deposit (see our first exposé) Then, the release identifies DECOIN as the ecological group- but then goes further in making untrue statements that DECOIN signed an agreement in March 20th with the company to ease tensions in the area, and that DECOIN was involved in the demands contained in the agreement which forced the company to reduce it’s work force from 159 to 48 (keep in mind that they were not doing any exploration work) All of this is not only untrue, but ridiculous, since DECOIN has never signed anything with either the government nor the company. The company knows this very well because they have a copy of the March 20th agreement, which, in any case, was signed by the Community Development Council and the government- and not with the company (the company signed its own agreement with the government)

As if this wasn’t sufficient, the spinners say that what has kept the company from “conducting its drilling program” was the seizing of the company’s farm in March of 2007 by local anti-mining protesters. This is one of the biggest pieces of misinformation yet. The plain truth is that company cannot drill, or carry out any other exploration activities unless it first gets its Environmental Impact Study approved. It is amazing that in spite of informing its investors and Canadian regulators that it has incurred over three million dollars in exploration costs just at the Junin site, the company has not done any exploration work whatsoever. And, this is simply because the government has not approved the company’s Environmental Impact Study (nor is it likely to)

As to the claim that it is part of the UN Global Pact and that it is a socially responsible corporation- flexibility is the key here. Flexibility in interpreting what socially responsibility means. Paying for paramilitary-like force to violently try to storm past a community roadblock and shoot at defenseless campesinos might not qualify in most people’s concept as socially responsible behavior. Nor perhaps is financing the use attack dogs against community residents, and tear gassing six year olds. Inciting illegal land trafficking (currently under government investigation) might also be incompatible in most people’s mind with social responsibility. I suspect that telling investors the company has spent million of dollars in exploration costs when, in fact, no real exploration work has been undertaken, would probably fail the acid test for socially responsibility in most persons and institutions. I also wonder what socially responsible company would keep the truth from the public about the real nature and extent of the opposition to its project? Or tell the public that it is sitting on four times more minerals than what was technically inferred after years of drilling by a very capable corporation (Mitsubishi Materials in the 1990's) ?

The list of questionable and illegal behavior and claims is very long. But let’s face it; unless there is genuine civil society involvement in Canada and other northern countries that really give a damn, there is nothing to stop extractive corporations from perverting the truth, ripping off investors, and causing social and environmental upheaval in countries like Ecuador.

DECOIN

EXPOSING ASCENDANT'S LATEST SPIN

2007-10-12T06:38:00.001-05:00

Exposing Ascendant Copper Corporation’s Latest Spin

If there is one thing that makes most mining companies homogenous, is their need to spin, distort, and disinform the public regarding either the real value of their mining deposit, the regulatory obstacles they face, and/or, the projects's environmental and social challenges, plus the true nature of the opposition their projects face on the ground. They are specially careful about controlling and manipulating the information regarding grass-roots opposition. Rarely are all these spins found in one single, short news release. Following is a typical example of such spin- one of many we've faced in the years of dealing with a copper-mining project in the biodiverse Toisan Range of Ecuador.

The October 10th Resource Investor news release (http://resourcexinvestor.com/news.php?id=2554) concerning Ascendant Cooper Corporation projects in Ecuador makes quite a lot of interesting, and outright disingenuous claims.

Let’s look at the claims in the news release one by one.

Amount of copper: We are sitting on the second if not the largest copper/molybdenum property in the world” …… “in fact we are looking at a potential in excess of a billion pounds of molybdenum and in excess of 20 billion pounds of copper”.

Truth: The truth is that, after 5 years of exploratory drilling in the 1990’s in the Junin mining concessions, the Mitsubishi subsidiary, Bishimetals, only inferred the possible existence of 2.26 millions tons of copper, and very little molybdenum . This amounts to four times less copper than what Ascendant is saying they are "sitting on", and only 52 days worth of global annual consumption. Needless to say, it does not constitute even a medium size discovery, much less a world-class one. On the other hand, what little was discovered in the company’s Chaucha concession was so disappointing, that it led Antofagasta to pull out of their joint exploratory agreement 2 months ago forcing Ascendant to fork over to the Chilean mining company 1.12 million dollars (http://biz.yahoo.com/iw/070716/0278284.html)

Suspensions: the release makes this assertion concerning the Ministry of Mines and Petroleum latest stop work order:

"On the downside, the Correa government on September 25 announced the formal suspension of Ascendants mining and community development activities in the Junin area in an effort to defuse tensions, an announcement Ascendant said was only a repetition of a previously announced order"

The Truth: the September 25, 2007 complete work suspension, contrary to what Ascendant would like to believe, is very much different from the other three suspensions, in that it came with a legal order signed by Ministry officials, and was based on a major judicial decision by the nation’s Attorney General. Also unlike previous times, this suspension was based on a violation of article 11 of the Mining Law- something not used in the previous suspensions.

The Confrontation: This is what the Resource Investor has to say about the decisive and violent confrontation between the communities resisting the project and paramilitary-like security guards paid for by Ascendant:

“These tensions boiled over in December of last year on Ascendants agricultural property. Anti-mining activists confronted a third party contracted agricultural firms Intag workers and security guards resulting in almost 60 people being held captive by activists, and locked in the local community church for several days until order was restored by Ecuadorian police.”

The Truth: The confrontation took place, not on Ascendant’s agricultural property, but on the road leading to the community of Junin. Second, the “agricultural firm” mentioned was hired by Ascendant, and the persons which confronted and shot at the unarmed community members were a paramilitary force, as described by CEDHU, the prestigious Quito-based human rights organization. Third, of the nearly 60 persons held in the community church, none was from the Intag or Junin area- all were ex-military personnel from the coast of Ecuador, all had .38 caliber hand guns, pepper spray, and several had 12 gauge shotguns. The company later tried to claim these individuals were “agricultural consultants”.

The Copper Delusion: As if this self-delusion wasn’t enough, the news release goes on to say that: “The Junin prospect has an inferred, NI 43-101 compliant resource estimate of 982 million tonnes. A drilling program is under way at the Chaucha property on the western flank of the Andes, the results of which are expected to up its combined resource estimate, according to Haigh”.

In June of this year Micon International stated that, because of a noted discrepancy between a 2007 and an original assaying of the Bishimetals sampling, it was unable to verify their previous inferred 982 million ton copper deposit. Here is an excerpt from the June 11th release

Because of the noted discrepancies, Micon has advised Ascendant that the inferred resource estimate contained in the Junin Report of 982 million tonnes grading 0.89% copper, 0.04% molybdenum and 1.9 grams per tonne silver, may not be fully representative of the mineralization at Junin, as the inferred resource estimate was based on historical data, some of which is now considered to be unverifiable due to deterioration of the core samples over time, the loss of fine material in the transfer of the historical core samples, and the methods of sampling and assaying employed during the 1990s Program. .” http://biz.yahoo.com/iw/070611/0264465.html

In other words, termite damage and other factors may now make it impossible to confirm Micon’s earlier inferred results for the Junin mining concessions. In fact, in 2006, CELA, the Canadian Environmental Law Association, filed a complaint with the British Columbia Securities Commission questioning the procedure used by Micon International to ascertain the Junin inferred mineral content, which was based on the Bishimetals samples. The complaint is still being investigated.

Scapegoating: If there has been a constant among Ascendant’s spins it is its efforts to try to portray to the world that their problems in Junin are due exclusively to the work of an environmental organization in the area. Here’s what the October 10th news release has to say:

“The problems that we have had and are having at Junin are the result of a massive campaign of no mining in Ecuador conducted by a local NGO. This particular NGO has been operating since the mid-1990s and were violent objectors to Mitsubishi when they were drilling there from 1993 to 1997 on the same deposit."

DECOIN is very flattered to think that we, a very small, under funded and understaffed grass-roots organization, with an office measuring 3 by 3 meters in the Intag town of Apuela (rent: $ 40 a month), could be responsible for all of Ascendant’s troubles in Junin. But we know the truth is very different, and that Ascendant’s allegations have other objectives. It is in any corporation’s interest to create the illusion that their project does not face grass-roots community and local government opposition. As every Banker knows, this is equivalent to a death sentence for mining projects.

The opposition to Ascendant’s Junin project is, in fact, truly remarkable in scope- perhaps even unique. It includes all seven local township government in Intag, as well as the Canton (county) government of Cotacachi, and the Provincial government of Imbabura- not to mention approximately 95% of the area’s legitimate organizations, and the overwhelming majority of the communities. Finally, it is important to point out that the opposition to the company’s project is led by the communities, and by them alone. The opposition to mining, far from being concentrated in Intag and Junin, is now a national issue, with several very strong anti-mining national groups opposing large-scale mining development. Given the firm and widespread opposition generated by this single mining project, one can only hope that investors are asking themselves what was it that the company did to deserve it. And while they are at it, perhaps they can question the need to misinform, exaggerate, distort, and keep vital information from the public.

As a matter of fact, these are the kinds of question Rio Tinto Zinc should be asking itself, since it apparently considers itself a socially responsible corporate citizen, and Ascendant considers Rio Tinto its "strategic partner".

DECOIN

La Hora: Ascendant Copper dejó Intag

2007-10-04T09:41:00.000-05:00

4 de Octubre de 2007

Momentos en que Edgar Romero, funcionario de la Dirección de Minería de Pichincha pone los sellos de suspensión.

García Moreno, La Hora

Ayer, una delegación de la Dirección Regional de Minería de Pichincha, por intermedio de Marco Cruz, director de la regional minera, exteriorizó la providencia que el Ministerio de Minas y Petróleos le impuso a la empresa canadiense Ascendant Copper para que suspenda sus operaciones de tipo minero en la zona de Intag.

La Hora

Official Shut Down of Ascendant / Ecuador Free of Large Scale Mining

2007-10-03T20:13:00.000-05:00

espaniol ya mismito......

Official Shut Down of Ascendant in Intag
Ecuador Free of Large-Scale Metal Mining

Today (Oct 3) officials from the Ministry of Mines and Petroleum, accompanied by police, came to Chalguayaco Bajo and García Moreno to officially close down Ascendant’s operations in Intag.

The Ministry’s employees placed official closure seals over the company’s office in Garcia Moreno and at their so-called demonstration farm in Chalguayacu Bajo, thereby completing the legal procedure set in motion last week by Minister Chiriboga when he declared a complete suspension to Ascendant’s activities in Intag.

So, there are parties in many Intag’s community’s tonight!!

Regarding the ridiculous spin the company is giving the latest events, seemingly aimed at misinforming their investors into believing that the government’s complete suspension orders are actually good for the company- well, what can one say? No matter how they paint the picture, there is NO way the communities, and much less the Municipality will ever consider allowing mining (besides the fact that the concessions were illegally begotten, and are in violation of the country's Constitution!!)) . The collective memory is still too fresh from the armed thugs, the December 2006 shootout, the countless death threats, tear-gassing of 6 year olds, attack dogs, and any other number of outrageous human rights abuses linked to the presence of this company. But then again, there are suckers born every minute ready to believe the most unbelievable things.....

Correa Sweeps to Victory
According to this afternoon’s official count (3 October), the government’s party, Alianza País, will win 70% of the vote in the Constitutional Assembly elections held last Sunday. The Assembly’s president will likely be Alberto Acosta, the most voted individual, who in an interviewed in Ecuador Radio yesterday confirmed his desire to declare Ecuador free of large-scaled metal mining. He also pointed out he would never support any kid of mining in places like INTAG, or in any other exceptionally biodiverse places, or in any location where communities reject mining.

There is a collective huge sigh of relief in Intag tonight not felt in years.

NO HOPE FOR LARGE-SCALE MINING NOR FOR ASCENDANT

2007-10-01T15:31:00.000-05:00

espaniol ya mismo....

NO HOPE FOR LARGE-SCALE MINING IN ECUADOR

Communities in Intag Celebrate the Results of Elections

In Ecuador, the government’s candidates won a landslide victory this past Sunday to the Constitutional Assembly, which will be charged with drafting a new constitution.

According to exit polls, the government candidates have won not less than 60% of the130 seats- more than enough for majority vote in the Assembly. In the Intag area, site of Ascendant Copper Corporation Junin mining project, approximately 70% of the population voted for the government candidates- including in the town center of García Moreno, allegedly a stronghold of Ascendant. The government party was seen as to be against large-scale mining. To pass any resolutions in the Assembly a simple majority plus one is necessary.

One of the first actions the Assembly is expected to take is to dissolve Congress.

The main governmental candidate, and ex Minister of Energy and Mines, Alberto Acosta, who easily won his race, has been explicit on his objective to prohibit large-scale mining projects in Ecuador. He made this issue an important part of his campaign. Due to the large vote he received, he will likely preside the Constitutional Assembly.

The Assembly will convene on the first of November, but Intag’s communities in the Intag area are rejoicing over the election results

ASCENDANT TO LEAVE INTAG!!

2007-09-25T19:38:00.000-05:00

Espaniol abajo

ASCENDANT COPPER CORPORATION TO LEAVE INTAG!!
FINALLY!!
This morning, 25 of September, Galo Chiriboga, the Ministry of Mines and Petroleum held a news conference where it ordered Ascendant Copper Corporation complete suspension of all activities within the company`s 3 concessions in the Intag region of Ecuador due to violations to the mining law. The Ministry's news release cited violation of article 11 of the Mining Law, which requires mining companies to seek authorization from the Municipalities before proceeding with mining activities. In this case, the Municipal government of Cotacachi never authorized Ascendant to undertake any activities in the County. The complete stop work order differs from previous ones in that, as the news release states, it came after a judicial review of the case and is a formal government decision.

The latest government decision will send a tsunami to the rest of the country and will affect most of the mining concessions in Ecuador, since it is believed that most mining companies do not have the authorization of Municipalities.

At the news conference, the violence affecting the Intag area in past months was brought up. Beyond the illegalities cited by the Minister, the Subsecretary of Environmental Protection of the Ministry, Lucia Ruiz, highlighted the Ministry's concern with the violence linked to the presence of "parallel armies" in Intag, referring to the paramilitary presence that led to violent confrontations between irregular armed groups and unarmed community members opposed to the mining project.

The prohibition affects 9,504 hectares of the Junin concessions, comprised of Golden 1, Golden 2 and Magdalena. The Minister of Mines and Petroleum further stated that all the mining concessions are in a process of being reviewed and that if illegalities are confirmed in any of them, they will revert back to the country.

Carlos Zorrilla
DECOIN
Source: http://www.menergia.gov.ec:8081/noticias/secciones/news/list.do;jsessionid=76117C8F2D92311014386DAE5692EE72?reqCode=doView&nid=223
ASCENDANT COPPER CORPORATION ABANDONARA INTAG
resumen: el dia de hoy, 25 de septiembre, el ministro de Minas y Petròleo, Galo Chiriboga, en una rueda de prensa, suspendio toda actividad de la empresa minera Ascendant Copper Corporation en la Zona de Intag. El ministro mencionO como causal, la violacion al art
Iculo 11 de la Ley de Minería, la cual exigue que las empresa obtengan una autorizacion de parte de los gobiernos municipales antes de iniciar actividades relacionadas a la mineria. En este sentido, dice el boletin de presna del Ministerio, la suspesión es un acto oficial y que viene después de una investigación juridica.

La decision, sin duda alguna, afectara a la mayoría de concesiones mineras en el Ecuador, ya que se piensa que el caso de Ascendant no es unico.

Mas allá de las ilegalidades, la violencia y presencia de "ejercitos paralelos" en Intag fue una preocupacion subrayada de parte de Lucía Ruiz, Subsecretaria de Protección Ambiental del Ministerio.

La suspension de actividades afectan 9.504 hectareas de las concesiones Golden 1, Golden 2, y Magdalena de Ascendant Copper Corporation.

Carlos Zorrilla