Ecuador revokes the environmental license for the Loma Larga gold project

Ecuador’s government has recently announced that it revoked the environmental license for Canadian company DPM Metals’ Loma Larga gold project, located in the Andean highlands of Azuay province.

The move follows years of community resistance and growing pressure from local authorities who warned that mining activity could threaten the Quimsacocha water reserve, a vital source of drinking water and irrigation for thousands in the region.

Technical report

Citing technical reports from Cuenca and Azuay, the Environment and Energy Ministry emphasized Ecuador’s commitment to ‘the rights of nature’ and the precautionary principle, reaffirming the protection of local ecosystems and public health. It explicitly stated: “The national government reaffirms its commitment to the rights of nature, the defense of water sources, and, under the precautionary principle, the protection of the health and well-being of the people of Cuenca and Azuay”.

Decades-long struggle

Cuenca’s Mayor, Cristian Zamora, called the decision ‘that It has been a decades-long struggle’ thanking authorities for prioritizing the safety of water and people over industrial expansion.

Loma Larga gold project

For DPM, which had planned a $419 million investment and expected annual production of 200,000 ounces of gold, the revocation marks a significant setback. But for many in Azuay, it represents a victory for environmental stewardship and community resilience.

As Reuters informs: In August, the Ecuadorean government had already suspended activities related to the project until the company released an environmental management plan, despite having granted it a license a month earlier to begin construction.

Despite having significant gold and copper deposits, Ecuador has halted mining projects due to recent legal rulings and local opposition. Currently, only two mining companies operate in the country.