Ecuador Revokes Environmental License for Loma Larga Gold Mine Amid Water Concerns

Ecuador’s government has officially revoked the environmental license previously granted to Canadian mining company DPM Metals for its Loma Larga gold project, citing environmental and public health concerns. The decision follows strong opposition from residents and local authorities in Azuay province, who argue that the project threatens the Quimsacocha water reserve—one of Ecuador’s vital sources of drinking and irrigation water.

According to a statement from Ecuador’s Environment and Energy Ministry, the revocation was based on technical reports from Cuenca and Azuay officials responsible for managing regional water systems. The ministry emphasized that the move aligns with the government’s commitment to protecting natural ecosystems, water resources, and community well-being under the precautionary principle.

Cuenca Mayor Cristian Zamora, a prominent opponent of the project, praised the government’s decision, calling it a victory for local communities that have fought for decades to protect their environment. “It has been a decades-long struggle,” Zamora said during a public event, expressing gratitude for the authorities’ decision to safeguard water supplies for future generations.

DPM Metals, which acquired the Loma Larga project in 2021, has not yet commented on the government’s decision. The project, valued at approximately $419 million, was expected to produce around 200,000 ounces of gold annually during its first five years. However, the government had already suspended related activities in August pending the company’s submission of an environmental management plan.

The Quimsacocha Reserve, spanning over 3,200 hectares in Ecuador’s Andean “paramo” ecosystem, serves as a key water source for southern Ecuador. Despite Ecuador’s rich gold and copper deposits, increasing legal challenges and local resistance have halted several mining ventures. Currently, only two major mining companies continue to operate in the country.