ARCOM Proposes Cutting Mining-Fee Target to USD 44M and Excluding Exploration
ARCOM is preparing a reform to Ecuador's mining supervision and control fee that would reduce the projected collection target from USD 221.75 million to USD 44 million.
The proposal is in the dissemination stage and would remove the fee from concessions in initial exploration, advanced exploration and economic evaluation phases.
Proposed Change
| Item | Current / prior framework | Proposed framework |
|---|---|---|
| Collection target | USD 221.75M | USD 44M |
| Effective collection cited by ARCOM | ~35% | Reform under review |
| Exploration-stage concessions | Subject to fee | Excluded |
| Calculation basis | Hectares and project phase | Real supervision and control costs |
ARCOM's current resolution, created on June 2, 2025, set variable charges between 3% and 100% of one basic salary per concessioned hectare, depending on the type of mining and project phase. It does not apply to artisanal mining.
Investment-Cost Signal
The regulator now says the current structure has proportionality problems, low collection effectiveness and a disconnect between the amount charged and the supervision services provided by the state.
The proposed exclusion for exploration-stage concessions is the highest-signal change. ARCOM recognizes that these phases do not yet generate commercial use of mineral resources and that the fee can become a barrier to attracting investment.
At least five firms dedicated to mineral exploration in Ecuador reportedly began procedures to sell concessions and leave the country because of the obligation to pay the mining fee. In one case, the required fee was approximately USD 5 million, above an annual operating budget of about USD 4 million.
Sector Position
Patricio Vargas, president of the Camara de Mineria de Cuenca, identified the fee as one of the main problems for exploration-stage projects because exploration does not generate income and its results are uncertain.
Santiago Yepez, former president of the Camara de Mineria del Ecuador, said the sector values the review but also raised the case of concessions suspended by force majeure that do not operate and may warrant exclusion from the tariff.
What To Watch
- Whether ARCOM adopts the USD 44M target as proposed
- Whether the final rule excludes all exploration and evaluation-stage concessions
- Whether the SRI becomes the collection agent for the fee
- Whether pending constitutional challenges continue after the reform
- Whether exploration companies pause divestment processes if the fee burden is removed
Source
Expreso — “Tasa minera en Ecuador: Gobierno plantea reducir en 80 % su recaudación, ¿qué cambiará?”
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