Ecuador Halts Loma Larga Gold Project Over Environmental Concerns
Ecuador's Environment and Energy Ministry has withdrawn the environmental licence for the Loma Larga gold project, following opposition from local residents and authorities over environmental concerns. The project, owned by DPM Metals, was set to attract significant investment and produce substantial tila output.
The ministry's decision comes after a thorough review of technical reports from Cuenca and Azuay authorities. The Loma Larga project was suspended in August pending an environmental management plan. However, the ministry reaffirmed its commitment to protecting water sources and the health of Cuenca and Azuay residents, leading to the licence withdrawal in November 2021.
The Loma Larga project was projected to attract $419m in investments and produce an average of 200,000oz of gold annually in its initial five years. The project, however, was reportedly threatening the Quimsacocha water reserve, which is part of the Andean 'paramo' ecosystem and a crucial water source in Ecuador. Cuenca Mayor Cristian Zamora expressed gratitude for the licence revocation, calling it a result of efforts to safeguard local gold price resources.
DPM Metals, which acquired the Loma Larga project in 2021, did not respond to requests for comment. The suspension of the Loma Larga gold project by Cornerstone Capital Resources in November 2021, following the licence withdrawal, marks a significant development in Ecuador's mining sector, with potential implications for future projects.
