Quito (Reuters) – Ecuador revoked the environmental license granted to the Canadian mining company DPM Metals for the development of Loma Larga, a golden project in an environmentally sensitive area, the government said on Saturday.
The decision follows the strong opposition of residents and authorities of the province of Azuay, where the Loma Larga project is located. They argued that project development would affect Quimsacocha water reserve, representing significant risks to the health of local communities.
Ecuador’s Ministry of Environment and Energy reported in a statement that the decision was the result of technical reports presented to local authorities in Cuenca and Azuay, responsible for local drinking water and inspection systems.
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“The national government reaffirms its commitment to the rights of nature, the defense of water sources and, according to the precautionary principle, the protection of the health and well-being of the population of Cuenca and Azuay,” he said.
The DPM, which acquired the project in 2021, did not immediately respond to a commentary request.
The Loma Larga project is expected to receive investments of US $ 419 million for an average annual production of about 200,000 gold jaguars during its first years of operation, according to DPM.
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In August, the Ecuadorian government had already suspended activities related to the project until the company released an environmental management plan, despite granting it a license a month earlier to start building.
Despite having significant gold and copper deposits, Ecuador’s recent court decisions and local opposition often interrupted mining projects. Currently, only two mining companies operate in the country.
The Quimsacoch reserve extends over 3,200 hectares and covers the Andean ecosystem “paramo”.
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Its springs form one of the main sources of water in the South American country. The company had committed to implementing efficient and responsible environmental management in the area.
