Amidst the ongoing violent turmoil in Ecuador, the emerging mining industry envisions a path forward, as both operational mines and upcoming projects are anticipated to proceed as scheduled, bolstered by heightened security measures.
Despite residents taking refuge at home due to President Daniel Noboa’s war on drug gangs, mines belonging to Lundin Gold Inc. and China’s Tongling Nonferrous Metals Group Co. maintain regular gold and copper production, according to Maria Eulalia Silva, head of the mining chamber. Meanwhile, projects by Adventus Mining Corp. and Dundee Precious Metals Inc. are poised to receive $1 billion as they approach the production phase.
The rise in production costs owing to security concerns is evident, but substantial funds have been garnered from the stock market, eagerly awaiting deployment in upcoming projects. These ventures are crucial and anticipated to proceed, ideally within the current year,” stated Silva in a late Wednesday interview.
The challenges presented by images of prison riots, hostage-taking of police, and masked gunmen seizing control of a live TV broadcast serve as yet another hurdle for Ecuador in establishing itself as a significant mining nation. However, according to Silva, these obstacles are not insurmountable. Despite the security crisis, no company has opted to withdraw, and the industry maintains a close and harmonious collaboration with authorities.
Nevertheless, the extensive prevalence of illegal mining has exerted immense pressure on the industry, causing reputational damage and imposing substantial environmental and human costs. President Noboa’s emergency measures, permitting the use of lethal force by police and soldiers against criminal gangs, are deemed by Silva as essential in halting and exposing groups that intimidate the formal and responsible sector. She emphasizes that these entities are more accurately described as narco-miners rather than merely illegal miners.