Released 4/412 Jun 2019 10:01
Exploration activity by foreign entities in Ecuador
The international awards that Ecuador received during 2017 confirm the success of its mining industry. The Mines and Money Americas Outstanding Achievement Awards 2017 presented awards for the Best Country of the Year to Ecuador, Best Explorer in Latin America to SolGold and CEO of the Year to Nick Mather, CEO of SolGold. Additionally, Mines and Money gave an award to Ecuador as the Most Innovative Country in December 2017.
These awards are not a coincidence. They are the combination of government decisions and the extraordinary exploration results of mining companies, which have placed Ecuador in the sights of investors.
As of the creation of the Mining Ministry (now called the Energy and Non-Renewable Natural Resources Ministry) in 2015, the Ecuadorian government has achieved various milestones, including signing the exploitation contract with Lundin for the development of the Fruta del Norte project, opening the mining cadastre, and starting the construction of the Mirador and Río Blanco projects. Additionally, there is the arrival and return of various companies with well-known experience, such as BHP Billiton, Anglo American, Newcrest and Fortescue.
However, the most important mining news is without a doubt the extraordinary results of the Cascabel project of the Australian company, SolGold, which indicate the existence of a world-class deposit that, according to experts, is only discovered every 10 years around the world. During a recent corporate presentation, published on the web page of SolGold, the investment required to develop the Cascabel project was projected using a conceptual economic model with a processing capacity of 40 metric tonnes per annum using the block cave mining method, and the numbers were impressive: US$3 billion capital expenditure, comprising one-third equity and two-thirds debt. An investment of this magnitude will surely impact the GDP of Ecuador by a number of points points, creating new jobs and fostering economic growth, especially in the provinces of Imbabura and Carchi – where the project is located – and in the province of Esmeraldas, home of the port that will be used for exporting the minerals.
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