Dundee’s gold project in Ecuador wins local backing

Canada’s Dundee Precious Metals (TSX: DPM) has moved a step closer to developing its Loma Larga gold project in Ecuador after the government completed a mandated consultation process that confirmed community support.The next phase is obtaining the environmental licence, which would allow construction to begin—potentially before the end of the year.María Eulalia Silva, executive president of Ecuador’s Mining Chamber, called the consultation an historic milestone. The Loma Larga project is expected to attract between $400 million and $500 million in investment and create around 1,500 direct jobs, most of them for local residents.“For the first time, a free, prior, and informed consultation has been held in the country, as established by Convention 169 of the International Labour Organization, to which Ecuador is a signatory,” Silva said in a statement.This process involves informing indigenous communities within the project’s area of influence about its potential benefits and risks, allowing them to make an informed decision.Dundee acquired the Loma Larga project in 2021. The underground gold mine is located in the southern Andean province of Azuay, near Cuenca. It is expected to produce an average of 200,000 ounces of gold annually during its first five years, followed by 170,000 ounces per year over the next seven. The asset also contains copper and silver, and includes a processing plant and tailings facility.Ecuador’s Mining Chamber said the country “critically needs” investment, noting that mining is one of the fastest-growing sectors. In 2023, mining exports hit a record $3.3 billion, making it the third-largest export sector.Loma Larga is one of six major mining projects expected to begin construction or production soon. Others include SoldGold’s Cascabel, Silvercorp’s El Domo, Lumina Gold’s Cangrejos, Atico Mining’s La Plata and Solaris Resources’ Warintza.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com