Ecuador Government Revokes Gold Mine Project's Environmental License

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Although the Ecuador government in June granted Dundee Precious Metals (DPM) the environmental permit for the Loma Larga gold mine in Cuenca, Azuay Province, Ecuador, subsequent concerns about water pollution prompted the government to revoke DPM's permit. The country continues to grapple with opposition and illegal mining.

DPM received the environmental license for the project on June 23, 2025.

The license was withdrawn after ongoing concerns from Cristian Eduardo Zamora Matute, mayor of Cuenca, and residents who opposed the project on environmental grounds. The critics led to further evaluation leading to revoking the permit.

DPM acquired Loma Larga in 2021, expecting to produce 200,000 ounces of gold annually over the first five years, with a total average of 170,000 ounces across the 12-year mine life.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can click here for projects related to the Loma Larga mine and here for a profile.

Despite its resources, Ecuador's mining sector is significantly less developed than those of its neighbors, Peru and Chile, with only two large-scale mines--Mirador and Fruta del Norte, which produce gold, copper, and silver.

Subscribers can read more information on the Mirador and Fruta del Norte mines.

Between January and May this year, mining exports generated US$1.5 billion for Ecuador, accounting for 9.72% of all the goods exported by the country during that period.

Looking beyond Loma Larga, there are currently multiple mining projects at various stages of development, including Cascabel, Curipamba and Llurimagua. Subscribers can read more information on the Cascabel, Curipamba and Llurimagua projects.

In June of this year, the government announced the reopening of the registry of mining concessions, which had been closed in 2018. Ecuador's Minister of Energy and Mines, Ines Manzano, said the reopening would occur in multiple phases throughout the remaining months of the year.

Despite these policy efforts, Ecuador still faces major internal hurdles to boosting its mining sector. Tackling illegal mining remains a central government challenge.

As a result, the administration of Daniel Noboa has launched efforts to control criminality, including illegal mining, with multiple security operations across the country.

At the same time, mining projects have faced strong opposition on environmental and indigenous rights grounds, with Loma Larga being the latest example. Similarly, in recent years, the San Carlos Panatza copper project encountered such opposition from local communities, forcing the company to halt activities.

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