Does Kinross think it will get a fair deal with the Ecuadorian government when signing contracts?
The windfall tax has been rarely applied in other mining jurisdictions. And those that have applied it, have not done so for long. In Ecuador, the WFT is part of the tax legislation. However, we are still at a very early stage in negotiating FDN’s exploitation contracts. So, we still do not know exactly how this tax will affect us. Do mining firms require exploration contracts? No. The law says that once the government approves the regulations, mining concessions must be adjusted to the new law. That is, [firms must] renew water permits, and environmental impact and social consultations at each stage [exploration, exploitation, etc.]. In our case, at advanced exploration phase, we must evaluate the project financially, continue our feasibility study, and then we can negotiate exploitation contracts. We still have a long way to go, but other firms, like Corriente Resources, are closer to negotiating contracts with the state. What CSR projects does Kinross in Ecuador have, how do they op
