MORE TO COME
Mining exports closed the year at an alltime record of USD2 billion, 99% higher than in 2020, according to the Ministry of Energy and Mines. Minerals today are Ecuador’s fourth main export, thanks to the output of largescale mines Fruta del Norte (USD740 million) and Mirador (USD840 million) and the continued growth of small-scale mining activities (USD513 million). By 2025, there are estimates indicating that a sustained growth in mining exports could potentially lead to USD4 billion in exports.
Investment in the mining sector over 2021 declined significantly due to the finalization of the construction of the Mirador and Fruta del Norte mines. Nevertheless, Ecuador remains mostly undiscovered for mining, leaving the door open for further investments should enough legal certainty be provided. On top of Fruta del Norte and Mirador, there are three strategic mining projects under development: Loma Larga, San Carlos Panantza, and Rio Blanco, as well as so-called second-generation projects: Cascabel, Cangrejos, Curipamba, La Plata, Llurimagua, and Ruta de Cobre.
The next mine to be built in Ecuador is Curipamba. TBY talked to Álvaro Dueñas, Country Manager of Adventus Mining Corporation, who noted that “Within our initial plans, 2023 is an important year because we will start building the mine. Hopefully, in 2024, we will start production. Even before starting construction, we have already demonstrated that investors believe in Ecuador, and in the project. This is a project fully funded by shareholders and important companies globally. And it is the best way to demonstrate the credibility that Ecuador currently has in the mining sector, and of the project itself.”
The Ecuadorian mining sector has welcomed the results of the Fraser Institute’s Annual Survey of Mining Companies for 2021, which assesses how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment. Ecuador’s score grew 26% compared to 2020, from 57.95 to 72.79, making it one of the most attractive mining investment destinations, placing the country 24th out of 84 overall.
Speaking on plans for the future of the sector, Nathan Monash, President of the Board of the Mining Chamber of Ecuador (CME), told TBY: “It is important to continue working hand in hand with the national government and create an enabling environment to continue developing the sector. It is essential that Ecuador continues to receive foreign investment in the early phase of the development of a mining project, namely exploration. For this, the reopening of the cadastre is a key priority. Additionally, CME will seek clarity on how the industry will continue to progress in light of recent rulings from the Constitutional Court. The next step is therefore the establishment of a law addressing this topic, one that ensures respect of the rights of all stakeholders and allows for the responsible development of the mining sector.”
A view inside a gold mine in Ecuador’s Portovelo canton