Ecuador, SolGold seal deal to launch nearly $5bn mining project
QUITO - Ecuador's government concluded negotiations with Australian miner SolGold to develop a major mine seen requiring a $4.9-billion investment over the lifetime of the project, the energy and mines ministry announced in a statement on Thursday.
The underground Cascabel mine is estimated to generate $35 billion in exports while attracting around $8-billion in royalties and taxes to state coffers during its operating life, the statement added.
SolGold said that the reserves estimates are based on an initial 26-year operating life of the project and a processing plant featuring an annual throughput of 25 million metric tons.
Cascabel is located in the Andean nation's northern Imbabura province, and the ministry has previously said it could become the world's biggest silver mine, third biggest for gold and No. 6 for copper.
While Ecuador holds abundant mineral reserves, it has lagged far behind South American mining giants Peru and Chile due largely to resistance from indigenous communities and court decisions that have thwarted extractive activities.
The agreement, which the ministry said was signed on Wednesday, commits SolGold to invest $4.882-billion during Cascabel's useful life, according to the ministry's statement.
The agreement with SolGold will "position Ecuador as an important producer and copper exporter," said Minister Fernando Santos, noting that the project has been awarded all necessary environmental and water permits.
Initial mineral reserves at Cascabel are estimated at 3.3-million metric tons of copper, 9.4-million ounces of gold and 30-million ounces of silver, according to company data.
Construction of the mine is seen starting in 2025, with operations kicking off in 2030, the ministry added.
Official data showed Ecuador exported about $2.8-billion worth of mining output last year, up by nearly a third compared to the previous year. The country's Fruta del Norte and Mirador mines, plus small-scale mining activities, were cited as major contributors.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation