Ecuador’s Correa launches post-election investment drive
QUITO: Ecuadorean President Rafael Correa expects to strike a landmark mining deal with Canadian firm Kinross within six months as he tries to attract more foreign investment after winning re-election on the weekend.
In an interview with Reuters earlier this week, the 49 year old leader also ruled out any major new socialist reforms during his next four-year term and said the South American country was well- placed to attract foreign companies.
Correa was re-elected on Sunday with 57 per cent of the vote, about 34 percentage points ahead of his closest rival.
Since taking office in 2007, he had won broad support with heavy spending on welfare, health, education and infrastructure projects.
He has also scared away investors by defaulting on US$3.2 billion of debt, rewriting contracts with oil companies to squeeze more revenue from them, pushing through a new constitution that gave him more power and making frequent outbursts against capitalism.
Correa said there would be ‘no more big changes’ and that the country was now in good shape to attract foreign companies.
“We’ve got an honest government, a stable economy, clear rules and profitable projects.
“That’s what investors want,” he told Reuters, adding the days of social unrest were long gone, after street protests and coups ousted three presidents in the decade before he took office.
“The rules of the game are clear and now we hope that investors will continue coming.”
Correa has already been in power longer than any other Ecuadorean leader since democracy was re-established in 1979 following a military dictatorship.
He said his ruling Alianza Pais party, which won a majority of seats in Congress on Sunday, would now push ahead with a mining reform allowing the government to sign a contract with Kinross for a large gold project.
Kinross’ Fruta del Norte project and the El Mirador copper mine being developed by Chinese-owned Ecuacorriente were seen as key projects in kick-starting Ecuador’s mining industry.
Correa said the Kinross deal would be finalised in August and would bring about US$1.2 billion in investment. — Reuters