CMOC strengthening strategic expansion in South Americ

CMOC Group has just reached an important moment in its global growth strategy, announcing the successful completion of its acquisition of 100% equity in the Cangrejos Gold Project in Ecuador. The transaction officially closed on June 24, 2026, marking the company’s formal entry into the gold sector and reinforcing its ambitions beyond its traditional portfolio.

High-level government engagement signals strong political support

Only two days later, on June 26, CMOC’s Chairman and Chief Investment Officer, Liu Jianfeng, held high-level discussions in Beijing with Daniel Noboa. The meeting focused on the future of the Cangrejos project and broader development plans in Ecuador. President Noboa expressed clear institutional support for accelerating the project and encouraged further expansion of CMOC’s investments, highlighting the Ecuadorian government’s commitment to enabling its progress. On the same day, Mr. Liu also engaged in constructive talks with Ecuador’s Ministers of Energy and Mines and Finance, reinforcing alignment on development priorities and long-term cooperation.

Cangrejos Gold Project

Strategically located in El Oro Province in southwestern Ecuador, the Cangrejos deposit represents a significant large-scale porphyry system within the Andean metallogenic belt, positioned at an elevation of approximately 1,100 meters. According to a 2023 pre-feasibility study, the project hosts a measured and indicated resource of 1.376 billion tonnes with an average gold grade of 0.46 g/t, containing 638 tonnes of gold. The proven and probable reserve stands at 659 million tonnes at an average grade of 0.55 g/t, totaling 359 tonnes of gold. The anticipated mine life is 26 years, underlining its long-term production potential.

From a development standpoint, the project benefits from several structural advantages. These include shallow, open-pit mineralization, a low strip ratio, and proximity to critical infrastructure, just 30 km from Machala, 40 km from a major port, 20 km from a substation, and 8 km from a highway. Combined with sufficient water availability, these factors position the project for relatively cost-efficient development.

Production outlook and impact on Ecuador’s gold output

CMOC has already mobilized a multidisciplinary team to accelerate execution, with commercial production targeted for 2028. At steady state, the mine is expected to deliver an average annual output of 11.5 tonnes of gold. Notably, this could increase Ecuador’s national gold production by nearly 50% based on 2024 levels, underscoring the project’s macroeconomic relevance.

Long-term vision and ESG commitment

As emphasized directly in the original announcement, “The acquisition of the Cangrejos Gold Project marks CMOC’s entry into the gold sector and reinforces our strategic presence in South America,” said Liu Jianfeng. He further stated, “As our second major investment in the region, following our niobium and phosphate operations in Brazil, Cangrejos reflects our long-term commitment to developing world-class, large-scale assets. With our proven operational expertise and industry-leading ESG management system, we are well-positioned to transform this project into a cost-efficient, environmentally responsible mine, one that creates lasting economic value while supporting local communities and advancing sustainable development.”

This milestone comes at a time when Ecuador is actively reshaping its mining landscape. Recent regulatory updates, including adjustments to permitting procedures, the introduction of fiscal incentives, and the reopening of concession registrations are creating a more stable and investment-friendly environment. In this context, CMOC’s move into Ecuador signals both confidence in the jurisdiction and a broader shift toward long-term, ESG-aligned resource development in South America.