Ecuador Appoints Jose Cisneros Manager Of State Mining Company

Jose Cisneros was appointed Friday as manager of the Empresa Nacional Minera, or ENAMI EP, Ecuador's new state mining company.

The company was created by an executive decree signed by President Rafael Correa on Dec. 31.

In a statement to the press, the Ministry of Nonrenewable Natural Resources said that the company has an investment budget of $30 million to carry out studies to help develop the mining sector.

According to the statement, Ecuador is looking to form joint-venture alliances with other state companies, especially from Venezuela and Chile, to stimulate the sector.

The company doesn't rule out developing projects in association with private companies that have concessions in Ecuador.

Local units of Corriente Resources Inc. (ETQ, CTQ.T), Kinross Gold Corp. (KGC, K.T), International Minerals Corp. (IMZLF, IMZ.T), Iamgold Corp. (IAG, IMG.T), Trilliant Exploration Corp. (TTXP), Mariana Resources Ltd. (MRLDF, MARL.LN) and others have mining concessions in Ecuador.

The government has said Ecuador has a mineral potential of around $110 billion, while the nation's Mining Chamber put the figure at at least $214 billion, primarily in deposits of gold, silver, copper and molybdenum.

-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653; [e-mail]