The company announced on June 10 it would cease development of the 11 million ounce Fruta Del Norte project. It has since stated publicly that windfall taxes were the main cause. Foreign companies with projects in Ecuador had long been watching Kinross to gauge their own possibilities.
 
But when asked about his reaction to the issue, Ecuadorian Mining Chamber vice-president Hernan Montero said there were too many unknown "specifics" in the negotiations.
 
"As a group we advocate mining agreements, but we cannot discuss the specific details of the negotiation. We can only say there were some economic and legal aspects," he told MiningNewsPremium.
 
"We feel concerned in a way about the fact they did not reach an understanding, but we cannot take a position, whether we are in favour of the government or in favour of companies."
 
Kinross' announcement came just two weeks after the Ecuadorian government issued an ultimatum to the company to agree on its terms or leave the country. Montero was reticent to say whether this threat was the correct move for the Correa administration to make.
 
"When there are public announcements that could go one way or another, they are obviously announcements made by each party for important reasons while they are in the negotiation process," Montero said.
 
"For example, Kinross made an announcement too, and it's very important that such announcements are made in a legal way."
 
"What we see in general is that we hope they can reach an agreement over the issue, or reach an understanding about the transition."
 
Government-owned news outlet Andes reported Fruta Del Norte would likely be reverted to the state on August 1 when Kinross' licence expires, with comments hinting that Chilean state miner Codelco may be involved.
 
"All the gold reserves and all the assets relating to the mining concession will be passed to the Ecuadorian state, which will accelerate development of this project with the immediate construction of the mine, making the most of the resources," Strategic Sector Coordination Minister Rafael Poveda told the publication.
 
"The state will leverage resources through any mechanism provided in our jurisdiction, for example with the National Mining Company, [or] a strategic alliance of some international company.
 
"Remember the alliance that already exists with [Chilean state miner] Codelco to develop the project Isimanchi."
 
Montero was unable to comment on Codelco's prospects in Ecuador, but said there was room for many more foreign companies to invest in the jurisdiction. He cited expectations that a new mining bill would be passed within 30 days.
 
"One of the important positions of the legal reform, when it will be officially published, is that there are certain elements that will be very important for clearly defining the laws the Ecuador has for mining," Montero said.
 
"I think that with all the clarity through correct communication, we can develop projects, perhaps not with the same strong intensity that Ecuador once had, but assuredly we can develop a better environment than what we've had for the last four years here.
 
"The government can ensure that companies continue with their projects, their investments, and provide a constitutional guarantee, which is key for developing mining projects in Ecuador."
 
He said the chamber had been instrumental in pushing for a royalty ceiling in the reform, and had also advocated a fixed tariff rate for small-to-medium size mining companies.
 
"From my personal point of view, we have had difficult times in developing projects that were very advanced, but I think it's a moment now in which we have to take this line, and keep going within the law to advance investments in Ecuador."
 
*Matthew Ogg is a Santiago-based freelance journalist.