Solaris Resources’ Warintza Project in Ecuador Attracts Global Attention, Chinese Investors in the Lead

Chinese companies are intensifying their interest in Ecuador's copper resources, focusing particularly on Solaris Resources and its Warintza deposit. Juan José Espinosa, Ecuador's Deputy Minister of Mining, confirmed in a recent interview that Chinese firms are interested in expanding their copper project development in the country. He highlighted that some of these companies have expressed specific interest in the Warintza copper project, which is owned by Solaris Resources.

Mining has grown significantly in its importance to Ecuador's economy. As of 2022, mining exports reached $2.775 billion. From January to July 2023, these exports had already hit $1.953 billion, showing a 21% increase compared to the same period the previous year. Ecuador's mining sector is dominated by two large projects: the Mirador copper project, which is a joint venture between China's Tongling Nonferrous Metals Group and China Railway Construction, and the Fruta del Norte gold project, operated by Canadian mining company, Lundin Gold.

In a recent development, a preliminary agreement was reached in July 2023 between the Ecuadorian government and the company behind the Mirador project to expand the project. Under this new arrangement, the daily mine processing capacity of the project is expected to at least double from the current 60,000 tonnes of ores to between 120,000 and 140,000 tonnes with a capital expenditure investment of roughly US$650 million.

Warintza Project Shines

Espinosa also stated that the government has identified 11 mining projects as key development priorities and has secured them in terms of permitting. Among these projects is the Warintza copper project. Solaris Resources, the company behind Warintza, has already invested over US$130 million in the project. According to the government, construction of the mine is slated to begin in 2025, with production expected to start in 2027. The anticipated capital investment for this project is approximately US$3 billion.

Solaris Resources has been the subject of several offers and is currently evaluating them. The Ecuadorian government has hosted visits from representatives of both Western and Chinese companies interested in the Warintza project. These companies conducted site visits and met with senior members of the administration of President Guillermo Lasso.

SoldGold and the Cascabel Project

The Cascabel copper-gold project, the country's largest undeveloped mine, has also attracted attention. Owned by SolGold, in which Jiangxi Copper has a stake, the Ecuadorian Government has inked a preliminary agreement with the investor for this project as well. The project has filed an application to enter the mining phase, and the government aims to sign a formal mining agreement before the end of its current term. This would allow the project to secure all necessary construction and mining-related permits, facilitating the start of construction in 2025 with a capital expenditure of up to US$5 billion.

The intensified focus on Ecuador's mining projects, particularly for copper and the Solaris flagship Warintza Project, highlights the strategic importance the sector holds for both Ecuador and China. With significant investments and plans for expansion on the horizon, it's evident that both countries see long-term value, collaboration and growth ahead.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes