Cangrejos Gold Project Pays First $34M in Advance Royalties; Total Obligation Set at $54M
ODIN Mining, the Ecuador subsidiary of China's CMOC Group, has made the first advance-royalty payment on the Cangrejos gold project in El Oro.
Royalty Schedule
Primicias reports that the project received its exploitation permit on April 27, 2026 and that Francisco Ruiz, ODIN Mining's head of Environment and Community Relations, confirmed $34 million in advance royalties were paid at contract signing.
The total advance-royalty obligation is $54 million. The remaining balance is structured around three project milestones:
| Milestone | Payment |
|---|---|
| Start of construction of the mineral-processing and smelting plant | $8M |
| Start of construction of the tailings facility | $8M |
| Start of mining operations | $4M |
Primicias reports that Cangrejos is located between Santa Rosa and Atahualpa, in El Oro, and that the government has framed the project as requiring investment above $1.7 billion.
Contract Parameters
The company committed to strategic investments in mining infrastructure, community development and environmental care. Primicias reports that the contract includes a stepped royalty regime ranging from 3% to 8%, depending on mineral type and international price.
The government guarantees legal stability and a predictable economic regime through investor-protection clauses. It also states that 60% of collected royalties will be assigned to productive and sustainable projects in communities within the project's area of influence.
Power Requirement
ODIN Mining said the project will adopt its own energy-supply solutions under the contract. The permitted source mix includes transition energy, hydroelectric, wind, solar or other renewable generation.
At peak production, Cangrejos is expected to require 80 MW of power, a demand level Primicias compares with the Mirador copper mine in Zamora Chinchipe.
What to watch
- Whether the technical and environmental approval sequence keeps construction on track before end-2027.
- Confirmation of the first two $8M follow-on royalty triggers: processing plant construction and tailings facility construction.
- The final self-power configuration selected by ODIN Mining and its capital-cost impact.
- Local deployment of the 60% royalty allocation in the project's area of influence.
Source: Primicias
Source
Primicias — “Ecuador recibe los primeros USD 34 millones en regalías del proyecto minero Cangrejos, uno de los más grandes del mundo”
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