LOMA LARGA
As Loma Larga moves into the construction and production phases, it will generate significant development and employment opportunities for local communities and Ecuador at large.
Can you provide an update on your operations at Loma Larga?
CANDACE MACGIBBON The Loma Larga gold-copper-silver project is our flagship asset. Loma Larga will be an environmentally responsible underground mine with an initial 12-year mine life, producing over 200,000 average annual gold equivalent ounces and employing almost 500 employees when in production. In 2020, our team will be focused on the advancement of Loma Larga and obtaining environmental permits, performing community consultation, and securing project financing, with the goal of commencing construction in 2021. INV Metals and our team has received significant support from the government, and we appreciate the strong support from the Minister of Energy and Non-Renewable Resources and the Vice Minister of Mines. The government, including the president and vice-president, has been vocal in support of a responsible mining industry in the press and in social media. The development of a responsible mining sector will help to provide safe employment opportunities, a stable tax revenue base, and a source of GDP growth.
JORGE BARRENO INV arrived in the country to take over IAMGOLD’s Loma Larga project. IAMGOLD had operated it from the first gold discovery, up to the feasibility stage. However, due to the moratorium established on mining projects, IAMGOLD decided to leave the country. Ultimately, INV was selected to carry on with the project, starting from 2013 onward; however, IAMGOLD still has a 35% stake in the project. INV conducted additional exploratory work, executed pre-feasibility and feasibility reports. These steps demonstrate INV’s commitment to develop the Loma Larga project. We are currently in a stage to net the financing to move onto the permit-granting phase and start developing the project. The feasibility study contemplates an underground mine of gold with a daily production rate of approximately 3,000 tons per day (tpd) in the initial years. We expect to reach 3,400tpd by the fifth year.
This will result in more gold recovered. We anticipate recovering 206,000 ounces over the projected life of the mine, which is about 12 years.
What are your strategies to navigate the demands of local populations and the different regulatory authorities?
CM Loma Larga was discovered in 2004, and INV Metals maintains an open and transparent partnership with the communities in its area of influence. We have been working together with local communities for 15 years, supporting programs developed together focusing on training, animal husbandry, micro enterprises, and environmental stewardship. Our team will be focused on the permitting phase in 2020 and will liaise with the relevant governmental ministries as we progress through permits. Consultation and communication with the communities will be based on accurate and scientific information on the project, while our conversations with the communities will be based on transparency, trust, and respect. Our focus on environmental excellence and our dedication to stewardship will be highlighted during this phase.
How is INV working to act as a responsible operator in the sector and promote the positive side of mining?
JB In Ecuador, there is a belief that we must choose between mining or water resources, or between mining and biodiversity. In order to tackle this misconception, we started working in partnership with universities to monitor these environmental factors. By encouraging the publication of academic papers and research on these mining issues, important knowledge about the ecological consequences of mining becomes available to any stakeholder. In our case, we monitor the water quality situation every three months. We evaluate biodiversity every six months. As for the communities, we have an entrepreneurship program for women that focus on developing natural medicinal products, as well as traditional foods such as jam. In all, we have generated 40 entrepreneurial initiatives thanks to our Loma Larga project. Mining is no longer just about mining, but the many benefits that responsible mining has. ✖