Canadian miner Dundee Precious Metals has successfully completed the free, prior and informed consultation (FPIC) process for its US$420 million Loma Larga underground gold project in Ecuador, marking a significant legal and social milestone for mining development in the country.
Historic First for Ecuador
The FPIC process was conducted in San Pedro de Escaleras, located in Ecuador’s Azuay province, and represents the first-ever prior consultation carried out for a mining project in Ecuador. This sets a constitutional and legal precedent, according to Emilio Suárez, a constitutional lawyer who spoke at a press conference held by the Chamber of Mines.
Suárez emphasized that the process gained majority support from the community, a critical factor given Ecuador’s history of social resistance to mining in ecologically sensitive areas.
Background: Legal and Environmental Tensions
The Loma Larga project had been suspended in 2022 following a lawsuit led by indigenous rights advocate and former presidential candidate Yaku Pérez, along with environmental organizations. Although the court ruled that no rights were violated, it required Dundee to carry out an FPIC process before resuming development.
The recent consultation, which included technical oversight by the International Labour Organization (ILO), fulfills this court mandate. Dundee can now seek environmental licensing, pending official certification by the local court that the FPIC has been properly conducted.
Legal Context: FPIC Not Binding
Under Ecuadorian law, FPIC follows ILO guidelines and ensures indigenous communities are involved in decisions affecting their territories and ways of life. However, FPIC is not binding, meaning projects can move forward even without unanimous community approval — a fact that continues to be a source of political tension.
Project Highlights and Future Plans
The 2020 feasibility study projected:
200,000 oz/year gold production during the first five years
170,000 oz/year life-of-mine average
Loma Larga also hosts copper and silver resources
Infrastructure includes a processing plant and a tailings dam
Updated feasibility results are expected in the coming months
Referendum vs. Concessions
In 2021, a referendum in Cuenca — Azuay’s provincial capital — saw a majority vote to ban mining in water recharge zones. However, Ecuador’s Constitutional Court ruled that the vote could not retroactively affect existing concessions, allowing Loma Larga to proceed.
Broader Mining Context in Ecuador
Ecuador’s large-scale mining push began in earnest in 2019 with:
Fruta del Norte (gold – Lundin Gold)
Mirador (copper – EcuaCorriente, Chinese consortium)
Upcoming projects:
Curipamba polymetallic project (Silvercorp Metals & Salazar Resources) – construction starts September 2025, production expected in late 2026
La Plata mine (Atico Mining) – construction planned for late 2026 or early 2027
Outlook
Loma Larga’s progress signals growing regulatory clarity and maturing institutional frameworks in Ecuador’s mining sector, although social license remains a critical hurdle. With legal processes largely cleared, Dundee’s next steps — especially its updated feasibility study and environmental licensing — will determine the pace of advancement in one of the country’s most controversial gold projects.
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