Ecuador is rich in minerals, including copper, iron ore, lead, uranium, zinc, and precious metals. The mining sector remains relatively undeveloped and is a small part of the national economy, but the country expects to see significant growth in large-scale mining activity in the short term. Ecuador scores “weak” on the Resource Governance Index as of 2017.
Main Mining Products
- Iron ore
What Are We Doing in Ecuador?
We welcomed Ecuador into our Deep Dive program in 2022 and have proposed an initial work plan to engage with the mining ministry and the revenue authority to help the government address tax base erosion and profit shifting (BEPS) risks in the mining sector.
Legal and Policy Support
Our work plan includes support for a model mining agreement for the government. We also plan to submit recommendations on tax incentives and provide an analysis of key laws and policies established in Ecuador.
We plan to deliver trainings on transfer pricing, financial transactions in mining, mineral pricing, and financial modelling.
We plan to work with the revenue authority to discuss ongoing mining audits and provide support related to auditing mineral exploration and fully operational mines in collaboration with the Tax Inspectors Without Borders program.