Ecuador Signs Its First Open-Pit Gold Mine Contract — $1.6 Billion Investment in El Oro Province

The Deal

Ecuador's government is signing an exploitation contract for Cangrejos — the country's first open-pit gold mine. This is a milestone: Ecuador has never permitted large-scale surface gold mining before.

Operator: Odin Mining Ecuador, a subsidiary of CMOC Singapore (Chinese-owned) Location: Between Santa Rosa and Atahualpa, El Oro province (southern coast) Area: Approximately 4,999 hectares Contract duration: 26 years Total investment: $1.648 billion

The Numbers

Cangrejos is ranked 13th among the world's largest undeveloped primary gold deposits. The scale is significant:

• Expected government revenue: $6 billion over the contract life
• Jobs (as of Q3 2025): 1,168 total — 292 direct, 876 indirect
• Energy requirement: 80 MW at peak production

The contract was signed under outgoing Energy Minister Inés Manzano.

Context

Ecuador's mining sector has been largely frozen since the mining cadastre (catastro minero) went inactive in 2018. Major projects like Loma Larga in Azuay have remained suspended amid environmental and community opposition.

Cangrejos breaks that pattern — it's moving forward despite the broader policy stalemate. The Chinese ownership and open-pit method will generate continued debate, but the government is prioritizing the revenue.

What This Means for Expats

Economic diversification. Ecuador's economy depends heavily on oil (which just hit a 16-year production low). Large-scale mining revenue — projected at $6 billion — helps offset declining petroleum income and supports the dollarized economy.

El Oro province impact. If you live near Machala, Santa Rosa, or Zaruma, expect infrastructure development, increased truck traffic, and economic activity in the region. Environmental monitoring will be a key issue.

Energy demand. The mine needs 80 MW — in a country already short 900-1,000 MW of generation capacity. This adds pressure to an already strained grid, potentially affecting power reliability nationwide.

Investment signal. A $1.6 billion foreign investment commitment signals confidence in Ecuador's regulatory environment — positive for property values, banking stability, and the broader economic trajectory.

For Cuenca expats specifically: This is the same province (El Oro) that borders Azuay. Road traffic between Cuenca and Machala may increase. The mine doesn't affect Cuenca's water supply (it's on the coastal side of the mountains).

Source: Primicias