Salem Radio Network News Saturday, October 4, 2025

Business

Ecuador revokes environmental license for Canada’s DPM to develop gold project

Carbonatix Pre-Player Loader

Audio By Carbonatix

By Alexandra Valencia

QUITO (Reuters) -Ecuador’s government has revoked the environmental license granted to Canadian mining company DPM Metals for the development of Loma Larga, a gold project in an environmentally sensitive area, the government said on Saturday.

The decision follows strong opposition from residents and local authorities in Azuay province, where Loma Larga is located, who argue that its development would affect the Quimsacocha water reserve, posing significant health risks to local communities.

Ecuador’s Environment and Energy Ministry said in a statement the decision resulted from technical reports submitted by authorities in Cuenca and Azuay that are responsible for the area’s drinking water and irrigation systems.

“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,” it said.

Cuenca Mayor Cristian Zamora, one of the leading voices opposing the mine, spoke at a public event thanking the authorities for listening and revoking the license for the project that he said would seriously threaten levels of water available for local residents.

“It has been a decades-long struggle,” he said.

DPM, which acquired the project in 2021, did not immediately respond to a request for comment.

The Loma Larga project was expected to receive investments of $419 million for an average annual production of about 200,000 ounces of gold during its first five years of operation, according to DPM.

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.

The Quimsacocha Reserve spans more than 3,200 hectares and encompasses the Andean “paramo” ecosystem, a type of highland moor. Its springs form one of the main water sources in the South American country.

(Reporting by Alexandra Valencia; Writing by Sarah Morland and Gabriel Araujo; Editing by Alistair Bell and Aurora Ellis)

Previous
Next
The Media Line News
Salem Media, our partners, and affiliates use cookies and similar technologies to enhance your browsing experience, analyze site traffic, personalize site content, and deliver relevant video recommendations. By using this website and continuing to navigate, you consent to our use of such technologies and the sharing of video viewing activity with third-party partners in accordance with the Video Privacy Protection Act and other privacy laws. Privacy Policy
OK
X CLOSE