Ecuadorean lawmakers pass reform geared at driving mining investment

Ecuador’s National Assembly on Thursday approved reforms proposed by President Daniel Noboa aimed at boosting the nation’s mining sector, but that have been criticized by environmentalists and indigenous groups.

The changes include modifications to environmental permitting processes, part of an effort to attract investment to an industry that has struggled to gain traction. The reforms passed with 77 votes in favor, 70 against and four abstentions.

Key among the changes is the replacement of the current environmental license with a broader “environmental authorization” for mining.

Approval could take one of three forms based on risk: a full license, an environmental registry, or an environmental certificate. The latter two are streamlined options for lower-impact projects, which officials say can help eliminate administrative hurdles that have historically delayed investments. The fuller license will still apply to higher-impact projects, officials say.

Large-scale mining development in Ecuador has been hampered by opposition from local communities, legal challenges and fluctuating regulations. The Fruta del Norte gold mine and the Mirador copper mine, both open since 2019, are currently the only two major operations in production.

The reforms also aim to establish a protected mining zone that would station troops in areas threatened by illegal mining and criminal gang operations. The changes would also formalize small-scale artisanal miners.

According to Environment and Energy Minister Ines Manzano, Ecuador has identified approximately 400 illegal mining sites nationwide.

Indigenous groups and environmentalists have criticized the reforms, arguing that replacing the environmental license weakens state environmental controls. They warn that these changes could also undermine communities’ right to prior consultation.

“They want to legislate in favor of large transnational mining companies and against the country, especially against the environment and the rights of communities,” the indigenous organization Ecuarunari said in a press release prior to the vote.

The reforms also incorporate changes designed to open the electricity sector to private investment.

(By Alexandra Valencia, Brendan O’Boyle and Daina Beth Solomon)