Lundin Gold Achieves Milestone with First Gold Exports from Ecuador
In a significant achievement for the Canadian company Lundin Gold, the first-ever industrial-scale gold exports from Ecuador were successfully sent off from a port in Guayaquil earlier this month. This momentous occasion marks a new chapter in Ecuador's mining industry, as Lundin Gold dispatched 180 tons of gold concentrate to Finland for processing, followed by a second shipment to a gold refinery in Switzerland.
The gold originates from the Fruta del Norte mining project situated in the Ecuadorian Amazon region. With reserves estimated at approximately 5.02 million ounces of gold, grading at an impressive 8.74 grams per tonne, Fruta del Norte promises substantial production potential.
The daily output is expected to reach 3,500 tonnes, averaging an annual yield of 310,000 ounces of gold. At the current market price of over USD580 per ounce, this venture holds immense economic significance. Notably, the Ecuadorian government, holding a 51% stake in the license, stands to benefit financially, with a portion of the proceeds directly contributing to the national budget.
This development has the potential to bring about a profound transformation in Ecuador's economy, which has faced challenges due to low oil prices in recent years.
Fruta del Norte, however, is not the sole protagonist in Ecuador's mining boom. The Mirador mining project is set to play a significant role as well. Developed by a subsidiary of the Chinese consortium CRCC-Tongguan, Mirador boasts estimated reserves of 3.2 million tons of copper, 3.4 million ounces of gold, and 27.1 million ounces of silver.
Already commencing industrial-scale copper production, Mirador has achieved its first exports of this metal, which left the country in July.
Mirador is a major player, ranking among the world's top 20 largest copper mines. The Chinese operator has invested up to USD1.3 billion in this venture. Once reaching peak production, the consortium expects to produce 1,200 tons of copper per day, resulting in 3.6 tons of refined copper.
Over the project's lifecycle, it is projected to contribute up to USD2.25 billion to the Ecuadorian state. All minerals extracted will be exported directly to China for processing.
The presence of CRCC-Tongguan in Ecuador is not coincidental. During his ten-year presidency, former President Rafael Correa, a leftist, actively sought investment from China, distancing the country from Western politics. His efforts were successful in attracting Chinese direct investment, particularly in the extractive industries, as well as securing substantial loans for infrastructure development.
Current President Lenin Moreno, once considered a political successor to Correa, has shown increased interest in aligning with the Western world. In an effort to attract foreign capital, he has introduced more business-friendly regulations, with Ecuador's untapped mineral reserves becoming a prominent selling point.
Government officials predict that by 2021, the mining industry could contribute up to 4% of the country's GDP, a significant increase from 1.6% in 2018.
To realize this potential, the Moreno government has actively sought development partners from the Western world. Australian company SolGold, in particular, has taken on a monumental task, leading the development of Cascabel, located north of the capital city, Quito.
Cascabel, expected to commence operations by 2021, holds immense prospects. With deposits of 20.3 million ounces of gold, 84.5 million ounces of silver, and over 9.5 million tons of copper, it will become one of the world's largest silver mines, the third-largest gold mine, and the sixth-largest copper mine. These figures attest to the remarkable potential of Ecuador as a major mineral exporter.
