Stronger Mining Sector Propels Ecuador's 2025 Ambitions

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Researched by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Ecuador hopes to become a major global mining player, following a growth in mining exports in 2022 and higher numbers projected for 2025.

Ecuador's Ministry of Energy and Non-Renewable Natural Resources recently highlighted the country's mining exports and set new goals for the coming years. According to the Central Bank of Ecuador, the nation exported US$2.3 billion in mining products up to October, about 42% higher than in the same period in 2021.

Gold and its concentrates are the main exports, in terms of dollar value, accounting for more than half of the US$2.3 billion exported in the first three quarters of 2022.

With these numbers, Ecuador has reached about 86% of its financial goals for this year's mining exports, excluding sales that will be made in the last three months of the year.

The mining industry represents Ecuador's fourth-largest export product and its first non-traditional export.

According to Alvaro Ordonez, Ecuador's mining vice-minister: "It is expected that by 2025, Ecuador will receive approximately US$4 billion from the export of mining products, which at current values would represent 15% of the country's total exports. This would place minerals as the third-most-exported product and with the highest importance, behind oil and shrimp."

Reaching US$4 billion of mining exports for 2025 would represent an increase of more than 50% from the expected exports for this year.

The government of President Guillermo Lasso aims to further attract international investments to develop the mining industry. At the same time, however, disputes with local communities have restricted some developments.

Earlier this year, Ecuador halted several mining developments over dialogue with local communities and indigenous groups. As part of those agreements, the government has suspended new mining rights until there is a better framework for applications and consultations. This will allow local communities to decide on the future of new mining projects.

Meanwhile, according to the ministry's statement, China is the leading importer of Ecuadorian mining products, with a share of 51.47%, followed by the U.S. and Switzerland, each with just more 10% of the exports.

Based on the Central Bank's numbers, Ecuadorian gold production in 2021 stood at 12,614 kilograms, while silver production was 2,273 kilograms.

In the first five months of this year, however, Ecuador exported about 6,231 kilograms of gold, a 36% increase when compared with the same period in 2021. Meanwhile, silver exports were just 273 kilograms, representing a 69% decrease when compared with the same period in 2021.

Besides gold and silver, Ecuador exports copper and lead. According to the Central Bank, the South American nation exported 538,000 kilograms of copper and 9 million kilograms of lead between January and May this year.

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