ECUADOR Trends and Developments Contributed by: Roque Bernardo Bustamante and Claudia Bustamante, Flor Bustamante Pizarro & Hurtado
Ecuador mining cadastre During 2016 and 2017, the government finally opened the door to new exploration opportunities, and several mining companies entered Ecuador seeking conces - sions. This brief window where the mining cadastre was opened renewed optimism in the sector; how - ever, it did not last long. On 24 January 2018, through Resolution No 001-DE-ARCOM-2018, the Mining Regulation and Control Agency (ARCOM) resolved to proceed with the temporary closure of the national mining cadastre, and it has remained closed since, with no new auction or bidding processes having been conducted for the granting of concessions to private entities. This decision effectively froze the possibility of acquiring new concessions through the traditional legal framework, leaving companies with only one option: to acquire existing concessions already grant - ed to other parties. This has led to a series of option agreements, whereby companies acquire rights to continue exploration on concessions held by others, but the overall pace of new exploration has slowed considerably. Mining exploration Exploration in Ecuador is inherently a slow and chal - lenging process. Beyond the legal requirements, com - panies must navigate a complex system of environ - mental licensing. Obtaining an environmental licence takes around two years, as it requires not only techni - cal studies but also consultation processes with local communities. In certain areas, indigenous community consultation is also required. Furthermore, several projects have been impacted by decisions of the Con - stitutional Court, which has in some cases annulled environmental licences that had already been grant - ed. These judicial interventions create uncertainty for investors, who face the risk that even after comply - ing with regulatory requirements, their projects may be halted by court rulings. The combination of legal, environmental and social challenges has made explo - ration in Ecuador a high-risk proposition, despite the country’s geological promise. Financial obligations must also be considered. Under the Mining Law, concession holders must pay an annual fee known as the patente , calculated per hec - tare. This payment is a fixed cost of maintaining a concession, regardless of whether exploration activi -
Mining Exploration Opportunities in Ecuador: ENAMI Commercial Agreements History of mining in Ecuador Mining exploration in Ecuador has undergone a complex and evolving trajectory over the past three decades, shaped by shifting legal regimes, political decisions and economic pressures. The country’s geological potential is undeniable, with world-class copper and gold deposits already discovered and developed. Yet the regulatory framework, environ - mental requirements and institutional uncertainties have created a landscape where opportunities coex - ist with significant risks. Understanding this history and the current mechanisms available for exploration is essential for evaluating the future of mining in Ecua - dor. Until 2008, Ecuador operated under a relatively straightforward concession regime. Mining rights were granted on a first-come, first-served basis, allowing private companies to acquire exploration concessions with relative ease. This system facilitated the entry of international mining firms and led to important dis - coveries during the 1990s. Among the most notable were the Mirador copper deposit, which has since become a producing mine, and the Fruta del Norte gold deposit, now one of the most significant gold mines in South America. These discoveries demon - strated the enormous geological potential of Ecuador, attracting international attention and positioning the country as a frontier destination for mineral explora - tion. In addition to these flagship projects, several oth - er deposits were identified during this period, though many remain undeveloped due to regulatory, financial or social challenges. The landscape changed dramatically in 2008, when the government decided to halt the granting of new concessions to private companies. For nearly seven years, from 2008 to 2015, no new mining concessions were made available for exploration. This freeze cre - ated frustration among investors and limited the ability of companies to expand their portfolios in Ecuador. The Mining Law did contemplate a competitive pro - cess known as a subasta (auction), but these process - es were not organised until 2016–17.
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