GO LARGE SCALE

he course of our in-field research in 2019 in Ecuador was marked by the start of production activity in two large-scale mining projects: firstly, Mirador developed by Ecuacorriente, and secondly, Fruta del Norte by Lundin Gold. The recent developments of the mining industry in Ecuador were shaped by the fall in oil prices, which made the previous administration under Correa seek new revenue sources, including mining royalties, especially toward the end of its 2007-2017 term. Over this period, it established ENAMI EP, the national mining company, in 2010 and oversaw the long-awaited reopening of the mining cadastre in 2016. According to the Accountability Report 2017 of the then-called Ministry of Mining, 275 new concessions were granted covering a total area of 1.05 million hectares, prompting the arrival of world-class mining players to Ecuador. In January 2018, the temporary closure of the mining cadastre was announced. June 2019 witnessed the launch of a new Mining Public Policy for the period 2019-2030, pre

Tsented by Vice President Otto Sonnenholzner, former Minister of Energy and Non-Renewable Natural Resources Carlos Pérez, and Minister of Economy and Finance Richard Martínez, whose presence demonstrated the importance of mining revenues to improve the country’s public finances. “Mining is the engine needed to gain speed on Ecuador’s project as a country, which is aimed at progress, equity and prosperity,” Sonnenholzner stated at the launch event. Ecuador’s unquestionable mining potential coupled with a framework that is progressively becoming more attractive for sectorial investors has made mining investments become the leading push in terms of FDI. In 2018, FDI to Ecuador increased by 126% to USD1.4 billion, with 53% coming from mining, while in 1H2019, the mining sector share of FDI increased to 62%. According to estimates, mining could represent 4% of the country’s GDP by 2021. Nevertheless, the realization of this figure would depend on Ecuador’s ability to inspire confidence among investors, especially regarding the politics around mining.