Atico secures investment protection agreement for La Plata project
Canadian junior Atico Mining has signed an Investment Protection Agreement (IPA) with the Ecuadorian government for the development of its La Plata project, covering $157.9-million in planned investment.
The agreement, announced on Wednesday, provides tax and legal stability throughout the life of the mine and is seen as a key step in advancing La Plata to construction.
Atico CEO Fernando Ganoza described the IPA as “a significant milestone that underscores our commitment to sustainable development and economic growth in Ecuador”. He said the agreement would “safeguard current and future $157.9-million of investments throughout the life of the mine” while strengthening investor confidence by providing a predictable and secure environment.
The IPA also reduces the corporate income tax rate by 5% during the contract term, ensures access to international arbitration in disputes, and prohibits confiscation or expropriation of immovable assets except under strict constitutional conditions with fair compensation.
Atico stated that the agreement stabilises sector-specific rules, tax incentive regimes, and property rights, while allowing investors to produce and market lawful goods, set prices, and import/export within legal frameworks. Disputes not resolved through 60 days of negotiations may be escalated to arbitration under the International Chamber of Commerce, seated in New York.
The La Plata project is in the final stages of securing its environmental licence and other statutory permits. Once received, construction will begin, generating more than 600 direct jobs and up to 1 800 indirect jobs. In commercial production, La Plata is expected to support more than 300 direct, and up to 900 indirect, positions.
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