
María Eulalia Silva Ricaurte Executive President
ECUADOR MINING CHAMBER (CME)
"As mining continues to expand, we expect the industry could become the backbone of Ecuador’s economy."
Could you introduce the CME to our international audience?
The Ecuadorian Chamber of Mining represents responsible mining in the country. Although Ecuador has had small-scale and artisanal mining for centuries, industrial production only started five years ago, with two mines currently in operation: Fruta del Norte and Mirador. That means Ecuador remains, by and large, an exploration district. And yet, in just five years since starting large-scale mineral production, we have seen astounding results. Fruta del Norte (Lundin Gold) has set a benchmark as a top-tier operation, proving Ecuador’s potential for world-class projects and top-level ESG engagement. What role does mining currently play in the Ecuadorian economy?
From just these two large-scale operations, mining accounted for over 2% of GDP in 2024. Apart from the direct contribution, there are multiple indirect socioeconomic benefits visible both at the provincial and national levels. Ecuador has historically been an oil-dependent economy, yet mining is now the fourth-largest export sector, even after accounting for challenges such as power outages. As mining continues to expand, we expect the industry could become the backbone of Ecuador’s economy. Mining is indeed probably the only industry that could substitute petroleum, but rather than switching from one extractive industry to another, we have an opportunity to take on board and implement the lessons we learned in our history as an oil producer. How does Ecuador fare in terms of its attractiveness as a mining investment destination?
If we refer to the Fraser Institute’s Annual Survey of Mining Companies, Ecuador ranks as the fourth most attractive country for its geological potential. However, in terms of regulation and the political environment within the same survey, we are no longer on at the top of the rankings. This mismatch is what we need to solve. Thankfully, while nature’s gifts are immovable, the political and fiscal frameworks are changeable. Fruta del Norte has demonstrated that responsible mining is possible. We have many challenges ahead of us, but we are starting to see a much broader recognition of the mining sector's importance to the Ecuadorian economy. What are the key pillars for the sector’s development that the Chamber is advocating for?
The first item is that we need a State mining policy. This should be driven from the highest level, supported by all institutions, and set long-term objectives. As part of this policy, the Chamber advocates for the reinstatement of a separate, self-standing Ministry of Mines, as it is currently merged into a broader ministry that also oversees oil and electricity. We also advocate for the inclusion of mining in the school curriculum of elementary and middle school education. This would help foster knowledge about industrial mining from an early age and help reduce prejudices around mining.
The second pillar is the legislative framework. Currently, there are several key laws being drafted, including the law on prior consultation, the environmental consultation law, the water resources law, and the reform of the mining law. It is essential that these regulations promote the development of responsible mining without imposing excessive restrictions that could hinder the industry – a balance not easy to strike by all means. Disproportionate or hyper-regulation does not only limit the growth of the formal sector and may also incentivize illegal mining.
The third key pillar is the reopening of the mining cadastre, which has been closed since 2018. Its closure coincided with a significant increase in illegal mining, highlighting the need for its reopening. Noboa’s government has made progress in cleaning up the cadastre with support from the IDB, but the next step is to reopen it. Of course, we do not want Ecuador sold to the highest bidder, but a framework that can ensure only responsible investors can gain access to new concessions.
The fourth pillar is security, which includes various aspects such as legal, physical, and electricity. Illegal mining poses a direct threat to the formal industry, especially to operators. This issue is not exclusive to Ecuador but is part of a regional phenomenon linked to transnational crime, also affecting countries like Colombia, Brazil, Peru and Guyana. Therefore, the solution must be addressed at a regional level with a comprehensive approach.
These four pillars are essential for the sustainable development of the mining industry in Ecuador.