By October 2024, exports were US$2.659 billion, reports the Chamber, which sees obstacles to be resolved next year.
The mining industry in Ecuador could set a new record in exports in 2025. The projection is that shipments abroad will reach US$ 4 billion next year, according to the Ecuadorian Chamber of Mining (CME), based on data from the Ministry of Energy and Mines.
The goal represents a significant recovery and growth for the activity after a 2024 in which mineral extraction has been affected by the energy crisis, since the Government of Daniel Noboa has ordered that the large-scale mines Fruta del Norte and Mirador be partially disconnected from the National Interconnected System (SNI).
In 2023, Ecuadorian mining exports totaled US$ 3.324 billion, which is the highest figure recorded so far. For 2024, the central government estimated to exceed that result by an additional 20% to 30%; however, energy rationing impacted the mining industry, so the outlook changed and a drop in exports is expected this year, revealed the Vice Minister of Mining, Rebeca Illescas, in November.
According to data shared by the Chamber, on Thursday, December 26, mineral exports amounted to US$ 2,659.4 million between January and October. And mining products represent 9.41% of total exports, the Chamber indicates.
He also noted that mining is the fourth largest sector in the Ecuadorian economy, the third largest in the basket of non-oil exports and the first largest in non-traditional exports.
The industry has contributed US$ 747 million to the public treasury, between sectoral taxes (more than US$ 226 million) and general taxes (more than US$ 521 million).
The Chamber highlights three important milestones that have occurred in 2024:
- Curipamba El Domo project, by the Curimining company: In January, the company received the environmental license for its construction, with an investment of US$ 300 million for this stage. The works for the construction of the mine would generate more than 800 direct jobs and 3,000 indirect jobs. US$ 380 million will be delivered to the Ecuadorian State in royalties and taxes.
- Cascabel Project, by SolGold: The exploration contract was signed. The development of the project will require an investment of US$ 4.2 billion. It is one of the 20 most important mines in the region. It is estimated that its production period will last 28 years, during which copper, gold and silver will be extracted. And US$ 6.7 billion will be generated for the Ecuadorian State.
- Cangrejos project, by Lumina Gold: In November, the closing of negotiations with the State was announced. It is the largest gold mine in Ecuador. The signing of the exploitation contract is scheduled for January 2025.
OBSTACLES TO BE OVERCOME
“2024 has been a year of challenges, but also full of progress for the mining industry,” sums up María Eulalia Silva, president of the Chamber of Mining. Among the advances she highlights the participation of President Noboa in the annual PDAC convention on responsible mining.
In addition, the presentation of a World Bank report was important, which concluded that mining, along with agriculture and tourism, “are key sectors for eradicating poverty in our country,” Silva recalls.
Although the outlook for 2025 is encouraging for exports, there are pending issues to be resolved for the benefit of the industry.
“There are several obstacles. It is essential to have a state mining policy that transcends the governments and administrations in power, that projects a long-term vision and establishes national objectives in the mining sector,” says the president of the Chamber.
In addition, although Ecuador has extensive regulations, “it lacks specific laws such as those on environmental consultation and prior, free and informed consultation.” The directive mentions that these laws, whose processing is in the hands of the National Assembly, “must guarantee sustainable development for the country.”
The opening of the mining registry is another pending issue. The Ecuadorian government has offered to reopen the registry in December 2025 and the Chamber is confident that this will be completed within the planned time frame.
Silva notes that a fundamental issue for the development of the industry and the country is to combat illegal mining. “This is an activity marked by an organized crime scheme, which seeks to stop responsible mining.”
And he does not ignore the energy issue: the electricity crisis “has impacted all productive sectors” and, because it is partly a consequence of climate change, the problem will continue to occur in the near future. For this reason, he emphasizes that Ecuador requires an “energy policy that ensures the good performance of the electricity supply in the country.”
