Ferrere secures victory for Core Gold in Ecuador mining concession dispute

Ferrere Ecuador has successfully represented Elipe, a subsidiary of Toronto-based gold mining company Core Gold, on a contentious administrative claim against Ecuador’s Ministry of Mining and the Attorney General’s Office.

The purpose of the claim was to recover a gold concession area located in the Cordillera del Condor, on which the Ministry of Mining had issued a caducity resolution to end Elipe’s exploitation license.

Ferrere conducted a strategic litigation alleging, on the one hand, the illegality of the caducity resolution due to violation of due process during the administrative procedure and, on the other hand, force majeure due to illegal miners in the area, which prevented the mining company from exercising its rights under the licence.

“The strong evidence and arguments presented by Ferrere led the Contentious Administrative Court of Guayaquil to accept Elipe’s claim and to declare annulment of the caducity resolution, returning the gold concession to Elipe,” the law firm said.

“In addition, the court recognized the force majeure event that affected Elipe. This case has no precedent in Ecuador and is of utmost importance among mining investors.”

“This judgment undoubtedly marks a relevant judicial precedent for Ecuadorian mining law,” Alvaro Ordóñez, of counsel director at Ferrere, said.

“The court has determined the circumstances in which mining companies would face force majeure under our legislation, the guarantees the state must provide, and what the legal effects are for the legitimate holders of mining concessions regarding invasions by illegal miners,” he said. 

Participating on behalf of Ferrere were counsels Luis Carlos Fernández (pictured) and Álvaro Ordoñez, along with senior associates Esteban Baquero and Emilio Aguayo.