ECUADOR: “MINING ANNEX” REPORTING OBLIGATIONS.

The Ecuadorian Official Gazette published Resolution No. NAC-DGERCGC25-00000004, which establishes the scope, formalities, terms, deadlines, exceptions, and persons obliged to file the “Mining Annex”, which can be summarized as follows:

1. Persons Obliged to File the “Mining Annex”:

Public and/or Private Individuals and Entities that comply with any of the following requirements:

1. Are owners or co-owners of mining concessions, commercialization licenses, and processing plants, that carry out economic activities connected to the exploration, exploitation, local commercialization, or exportation of metallic and non-metallic mineral substances
2. Subscribed operation, assignment, transfer of rights, and/or mandate agreements.
3. Carry out economic activities connected to the exploration, exploitation, benefit, transportation, local commercialization, or exportation of metallic and non-metallic minerals.

Exceptions: owners of artisanal mining permits.

• Information to be reported:
• Information and Identification of the reporting person.
• Mining Concessions/Commercialization Concessions/Processing Plants/Mining Operators/Mandate Agreements: Province – Canton – and Parrish of the place where they are located, number of registered workers, rights code, name, concessioned hectares, and other relevant information.
• Minerals Produced: type, quantity, measure units, main and secondary minerals stock/inventory.
• Purchases: purchase receipt number, suppliers’ identification, quantity, measure unit, name of the acquired mineral, purchase amount, and mineral origin.
• Domestic Sales and Exports: sale receipt number, type of client, clients’ identification, commercialization agreements information, type of mineral commercialized, quantity, measure unit, value/price of the commercialized mineral, content, main and secondary mineral payables, sale price, valuation/pricing source, sale amount, credit notes, export declaration number, tariff subheading, transporter’s name, waybill.
• Investments: mining concession code and regime, total investment, and/or preoperational/supplementary exploration/preparation and development investment amount.
• Property, plant, and equipment: a detail of assets registered as property, plant, and equipment to the mining reserves (including machinery), and the use or right over the reported machinery.

•  Formalities:

The “Mining Annex” must be filed biannually on the Revenue Tax Authorities’ website. The first semester (January – June) must be reported in September and the second one (July – December) in March of the subsequent year. The exact deadline depends on the last digit of the taxpayer’s tax identification (“RUC”) number.

Failure to comply with this filing obligation, either by not filing it or filing it incompletely, shall trigger a fine of up to USD 1,000.

• Other Considerations:

The abovementioned obliged persons must submit notarized copies of the mineral operation, mandate, and sale agreements for the 2022, 2023, and 2024 fiscal periods by March 31^st, 2025.

Further, they must file the “Mining Annex” concerning the 1^st and 2^nd semesters of the 2022, 2023, and 2024 fiscal periods by December 31^st, 2025.