Two Ecuador mining projects take significant steps forward

Ecuador's mining sector received some good news last week as the energy and mines ministry authorized a change to the Curipamba project and a judge in Cotopaxi province rejected legal action filed against the La Plata project.

Following the August 2 decision of the ministry, construction of the US$300mn Curipamba medium-sized project can begin along with all the necessary infrastructure for it to become the third industrial-scale mine in Ecuador after Fruta del Norte and Mirador.

Located in the Las Naves canton, in Bolívar province, the project of Canadian companies Silvercorp and Salazar Resources mainly houses copper and gold, but also zinc and silver. It would initially be open pit before later becoming underground.

In the case of the US$175mn La Plata project, also on August 2 judge Darwin Paredes, of the Sigchos canton in provincial capital Cotopaxi, rejected an injunction request under which the informative phase of the environmental consultation on the mining and processing stages had been suspended since March. The polymetallic project is in the hands of Canada’s Atico Mining.

The request was presented by the mayor of Sigchos, Óscar Monge, and supported by Conaie, the largest indigenous organization in the country, along with NGO Frente Nacional Antiminero and a peasant group from Cotopaxi, among others, who argued they would be affected by the project.

An appeal of the ruling, which also lifted precautionary measures against the mining project, was announced the same day.

According to lawyer Juan Francisco Guerrero, the appeal could take four to six months.

The plaintiffs alleged violation of the rights to free and informed prior consultation, environmental consultation, and the rights of nature.

Prior, free and informed consultation, in accordance with national laws and international treaties, is mandatory when there are indigenous peoples in the project area. The environmental consultation, in accordance with national laws, must be carried out by the environment ministry in the area of influence of extractive projects, although its results are not binding. The rights of nature have been enshrined in the country's constitution since 2008.

POSSIBLE PRECEDENT

In his ruling, which should be communicated in writing to the parties later this week, judge Paredes said there is no violation of any of the alleged rights.

Experts say the ruling could constitute an important precedent not just for mining but for other cases of extractive projects.

The judge said prior consultation is a collective right and that an expert report and witness statements, even from those who were in favor of the action, demonstrated the existence of mestizo communities so prior consultation is not applicable, although some define themselves as indigenous.

On the issue of environmental consultation, the judge said the presence of security forces in the process, which was questioned by the plaintiffs, does not imply any vice but rather a safeguard.

Regarding the impact on the rights of nature, the judge ruled that the arguments presented constitute mere assumptions regarding future and uncertain events, given that they are based on an inconclusive and non-definitive process.

On alleged violations of rights contained in the environmental impact study, the judge said that because it is a technical instrument it is not subject to legal action since it requires technical and scientific knowledge, as well as extensive evidence.

"Although it is important that the judge has rejected the injunction, even more important are the criteria with which the judge rejected it because they mark a before and after. Additionally, they make the appeal very difficult," Andrés Ycaza, an expert in mining at the Flor, Bustamante, Pizarro & Hurtado law firm, told BNamericas.

La Plata, which will be an underground mine, will focus on exporting copper and zinc concentrates that also contain gold and silver.

The concession is valid until 2049. However, if the operator discovers new resources during exploration it could obtain an extension of 25 years.

In a recent interview with BNamericas, former deputy mines minister Fernando Benalcázar predicted that La Plata could obtain the environmental license towards the last quarter of 2025.

If so, construction of what would be the fourth industrial-scale mine in the country could begin in 2026.