Articles
Business intelligence and analysis on Ecuador
ENAMI Plans 2026 International Tender for $3B Llurimagua Copper Project — 982M-Tonne Resource
Ecuador's state mining company ENAMI plans to launch an international tender in 2026 for the Llurimagua copper-molybdenum project in Imbabura province, valued at an estimated $3 billion. The deposit holds a 982-million-tonne resource capable of producing approximately 210,000 tonnes of copper annually over a 27-year mine life. The tender arrives at a strategic inflection point — weeks after the National Assembly's mining reform and Ecuador's inclusion in the U.S. Critical Minerals Ministerial.
Lundin Gold Commits $100M Exploration Budget for 2026 — Fruta del Norte South Decision by H1
Lundin Gold has committed $100 million in exploration investment for 2026, targeting a development decision on the Fruta del Norte South satellite deposit by H1 and a mill expansion study (beyond 5,500 t/d) by H2. The company produced 498,315 ounces of gold in 2025 and guides 475,000-525,000 oz for 2026 at all-in sustaining costs of $1,110-1,170/oz. Ecuador's Decree 273 sliding royalty regime has added approximately $150/oz to the cost structure.
U.S. Designates Ecuador as Strategic Minerals Source — Unlocks $10B in EXIM/DFC Financing
Ecuador was recognized as a strategic minerals source at the February 4, 2026 Critical Minerals Ministerial in Washington, attended by 54 nations. The designation unlocks access to up to $10 billion in U.S. EXIM Bank and DFC project financing for qualifying mining projects. Ecuador's heavy rare earth deposits, copper reserves, and gold resources were specifically cited. However, Chinese firms already control the country's three largest undeveloped mining projects, representing over $50 billion in combined resource value.
National Assembly Passes Mining Reform 77-70 — Environmental Permitting Overhauled
Ecuador's National Assembly passed comprehensive mining reform legislation on February 27, 2026, by a 77-70 vote. The law replaces the single environmental licensing system with a tiered authorization framework, establishes protected military zones covering approximately 400 illegal mining sites, and creates a formalization pathway for artisanal miners. Indigenous organization Ecuarunari has signaled it may challenge the law in the Constitutional Court, citing inadequate prior consultation.
Decree 273 Introduces Sliding Mining Royalties: 3%-5%-8% Scale Plus 100% Self-Power Mandate
Presidential Decree 273, signed December 31, 2025 and effective January 1, 2026, restructures Ecuador's mining royalty framework with a sliding scale tied to trailing three-year LME averages: 3% below reference, 5% at reference, 8% above. The decree also mandates 100% self-generated power for all mining operations — adding an estimated $150-400 million per project — and compresses exploration timelines from approximately 8 years to 3.5-5 years. The regime directly affects SolGold's Cascabel ($3.2B), CMOC's Cangrejos ($2.5B), Solaris' Warintza ($1.4B), and Dundee's Loma Larga ($312M).
National Assembly Passes Mining Reform Law — 77-70 Vote
Ecuador's National Assembly passed the Mining Reform Law in a 77-70 vote, establishing a new environmental compliance system, restructured community consultation framework, and streamlined permitting processes. The reform is projected to unlock $10-15 billion in mining investment by 2030, driven primarily by gold and copper projects in the southern highlands and coastal cordillera.
Lundin Gold Invests $100M in 2026 Exploration — 133K Meters Drilling
Lundin Gold announced a $100 million exploration investment for 2026, including 133,000 meters of drilling at and around the Fruta del Norte gold mine in Zamora-Chinchipe province. The program targets mine life extension, resource expansion, and near-mine discoveries at Ecuador's flagship producing gold operation.
Mining Reform Law Takes Effect: New Environmental Framework, Military Zones
Ecuador's Mining Reform Law entered into force on March 2, 2026, replacing the traditional environmental license with a tiered 'environmental authorization' system. The law creates protected mining zones with military deployment authority, establishes a formalization path for artisanal miners, and supports a $14 billion project pipeline. Mining exports reached $3 billion in 2024, with the government targeting a doubling by 2027.
Large-Scale Mines Cross $1B Annual Revenue Mark
Ecuador's three operating large-scale mines — Fruta del Norte (gold), Mirador (copper), and Cascabel (copper-gold) — have crossed the $1 billion combined annual revenue threshold. Fruta del Norte alone has attracted $2.7 billion in total investment since inception. Meanwhile, the next generation of projects — Warintza, La Plata, and Curipamba — are advancing through feasibility and permitting stages, though the mining cadastre has remained closed since January 2018.
Decree 273 in Effect: New 3-8% Mining Royalty Scale and Self-Power Mandate
Ecuador's Decree 273, approved by the National Assembly 77-70 on February 26, establishes a price-linked mining royalty scale of 3-8% based on the trailing three-year London Metal Exchange average. At current gold prices near $2,050/oz, the standard rate is 5%. The decree also mandates 100% self-power generation for mining operations and clears the path for $14B+ in project investment including Cascabel, Llurimagua, Fruta del Norte, Warintza, and Loma Larga.
U.S. Designates Ecuador's Rare Earth, Copper, and Gold as Strategic Minerals
The United States has designated Ecuador's rare earth, copper, and gold reserves as strategic minerals under a bilateral Critical Minerals Framework signed at the February 4 Critical Minerals Ministerial in Washington. Ecuador was one of 11 nations to sign the framework, which enables U.S. EXIM Bank financing for mining projects and positions the country as a priority partner in Washington's strategy to diversify critical mineral supply chains away from China.
Mining and Energy Reform Law Approved: Environmental Licensing Simplified, Galapagos Extraction Permitted
Ecuador's National Assembly approved the Mining and Energy Reform Law on February 26 with a 77-70 vote, replacing environmental impact licenses with simplified authorizations for mining and energy projects. The law also permits rock and aggregate extraction in Galapagos outside national park boundaries. The government targets $10-15 billion in mining investment by 2030, with Cascabel and Curipamba advancing to exploitation phase.