ENAMI Plans 2026 International Tender for $3 Billion Llurimagua Copper-Molybdenum Project After Codelco Exit

ENAMI Prepares Llurimagua Tender After Codelco Withdrawal

ENAMI EP, Ecuador's state-owned mining company, plans to launch an international tender in 2026 for the Llurimagua copper-molybdenum project -- a $3 billion development in Imbabura province, approximately 80 kilometres northeast of Quito. The tender follows the withdrawal of Codelco, Chile's state copper giant, from the joint venture that had been developing the project since 2011.

Llurimagua represents Ecuador's most significant copper asset and, if developed, would be one of the largest mining investments in the country's history -- arriving at a moment when global copper demand is surging due to the electrification transition.

Project specifications

| Parameter | Detail | |---|---|---| | Location | Imbabura province, ~80 km NE of Quito | | Resource base | 982 million tonnes | | Primary metal | Copper (with molybdenum byproduct) | | Projected annual output | ~210,000 tonnes of copper | | Mine life | 27 years | | Estimated investment | $3 billion | | Project stage | Advanced exploration / pre-feasibility | | Original JV structure | ENAMI 51% / Codelco 49% |

At 210,000 tonnes per annum, Llurimagua would rank among Latin America's mid-tier copper operations -- comparable to Antamina in Peru (450,000 tpa) but smaller than Chile's mega-mines. The molybdenum byproduct adds significant value: molybdenum prices have averaged $40-60 per kilogram in recent years, driven by demand from steel alloy and aerospace applications.

Why Codelco left

Codelco entered the Llurimagua joint venture in 2011 under a 51/49 structure with ENAMI. The partnership was designed to combine Codelco's technical expertise with Ecuador's sovereign ownership of the resource. However, the relationship deteriorated over several years:

| Issue | Detail | |---|---|---| | Financing gap | ENAMI could not fund its 51% share of development costs; Codelco unwilling to finance the state company's portion | | Environmental permitting | A 2014 environmental impact study was overturned by an Ecuadorian court, requiring a new assessment | | Community opposition | Local indigenous communities in Intag Valley have opposed the project on environmental grounds | | Strategic reallocation | Codelco redirected capital toward its own Chilean projects amid rising costs |

Codelco's exit leaves ENAMI without the technical or financial capacity to develop Llurimagua independently. The international tender is designed to attract a new private-sector partner -- likely a major copper producer or a mining-focused private equity consortium -- willing to fund the estimated $3 billion in development capital.

Regulatory framework: Decree 273

The tender will be conducted under Ecuador's reformed mining framework, established by Executive Decree 273 in late 2025. The decree introduced several changes relevant to Llurimagua:

Provision	Detail	Impact on Llurimagua
Royalty rate	3-8% sliding scale (based on commodity price)	Moderate cost at current copper prices (~$9,000/tonne)
Calculation base	Gross revenue (not net)	Higher effective royalty vs. previous regime
Self-power mandate	100% of mine electricity must be self-generated	Significant capex requirement for on-site generation
Environmental assessment	Updated EIA required	New study needed (prior 2014 EIA invalidated)

The 100% self-power mandate is particularly consequential for Llurimagua. Large-scale copper processing is electricity-intensive, and the requirement to self-generate power -- rather than draw from Ecuador's national grid -- adds an estimated $200-400 million in additional capital expenditure for on-site generation facilities (likely natural gas or solar-diesel hybrid).

Global copper market context

The Llurimagua tender arrives against a backdrop of structural copper supply deficits projected through the 2030s:

| Metric | Detail | |---|---|---| | Current copper price | ~$9,000-9,500/tonne (LME) | | Projected supply deficit (2030) | 4-8 million tonnes annually (various estimates) | | Demand drivers | EVs, grid infrastructure, renewable energy, data centres | | Average EV copper content | ~83 kg per vehicle (vs. ~23 kg for ICE) | | New mine development | Declining globally; average lead time 15+ years from discovery to production |

Copper's role as the "metal of electrification" has made new supply sources strategically valuable. Ecuador's Llurimagua, alongside the Cascabel project (SolGold, also in Imbabura) and Mirador (ECSA/Tongling, Zamora-Chinchipe), positions the country as a potential new entrant in the global copper supply chain.

Potential bidders

While ENAMI has not disclosed a shortlist, industry analysts point to several likely categories of bidders:

• Chinese state miners: CNMC, Zijin Mining, or China Molybdenum -- already active in Ecuador through the Mirador and Fruta del Norte projects
• Canadian juniors with deep pockets: Companies seeking to replicate SolGold's Cascabel model in the same geological belt
• Diversified majors: BHP, Rio Tinto, or Freeport-McMoRan -- though these typically prefer brownfield expansion over greenfield in new jurisdictions
• Private equity/infrastructure funds: Increasingly active in critical minerals, though the 27-year time horizon may deter some

Community and environmental considerations

Llurimagua has been a flashpoint for anti-mining activism in Ecuador. The Intag Valley communities surrounding the project have organised sustained opposition since the 1990s, citing risks to water sources, biodiversity, and traditional livelihoods. CONAIE (Confederation of Indigenous Nationalities of Ecuador) has included Llurimagua in its broader mobilisation against the Noboa government's mining reforms.

Any successful bidder will need to navigate:

• A new environmental impact assessment (the 2014 study was invalidated)
• Free, prior, and informed consent (FPIC) processes with affected communities
• Water use permits from SENAGUA in a watershed that supplies downstream agricultural communities
• Ongoing litigation challenging the project's legality in Ecuadorian courts

What to watch

Monitor ENAMI's tender announcement for timeline, pre-qualification criteria, and minimum investment commitments. Track court proceedings related to the invalidated environmental license -- a new legal challenge could delay the tender. Watch for Codelco's formal asset transfer documentation, which will clarify what geological data and infrastructure the new partner inherits. The Decree 273 self-power mandate may be the most contentious requirement for bidders; watch for industry lobbying to modify or waive this provision for strategic projects. Follow copper price movements -- sustained prices above $9,000/tonne make the $3 billion investment case increasingly viable.

Sources: MINING.COM, BNamericas, Chambers and Partners