Ecuador Signs Critical Minerals Deal with the U.S. -- Here's Why It Matters in Cuenca

Ecuador quietly signed a bilateral critical minerals framework with the United States on February 4 at the inaugural 2026 Critical Minerals Ministerial in Washington. The agreement positions Ecuador as a strategic partner in America's effort to diversify mineral supply chains away from China.

If you live in Cuenca, this one matters.

What Was Signed

Secretary of State Marco Rubio and Vice President JD Vance hosted representatives from 54 countries at the ministerial. Ecuador was one of eleven countries that signed new bilateral frameworks or memoranda of understanding, alongside Argentina, Peru, the UK, the Philippines, and others.

The agreements establish cooperation on:

• Diversifying mineral supply chains away from Chinese dominance in processing and refining
• Creating preferential trading arrangements among allied countries for critical minerals
• Coordinating trade policy including price floors, tariffs, and market stabilization mechanisms
• Expanding access to financing for mining development
• Building reliable supply chains for minerals essential to defense, advanced manufacturing, and clean energy

Rubio also announced the creation of FORGE, a new initiative replacing the Minerals Security Partnership, along with Pax Silica, a private-sector partnership focused on mining investment, refining, processing, and recycling.

Why Ecuador

Ecuador sits on significant untapped mineral wealth. The country's mining pipeline includes projects that could attract over $14 billion in capital investment:

• Llurimagua (Imbabura) -- A $3 billion copper-molybdenum project that Ecuador plans to tender internationally in 2026. Could produce 210,000 tonnes of copper annually over a 27-year mine life
• Cangrejos (El Oro) -- A gold-copper project acquired by China's CMOC Mining for C$581 million, with operations expected to begin by 2027
• Loma Larga (Azuay) -- An underground gold-copper-silver project expected to produce 140,000 oz of gold annually, requiring $400-500 million in investment
• El Domo/Curipamba (Bolivar) -- Copper-gold project with operations targeted for 2027

Ecuador also has two operating large-scale mines -- a Canadian-operated gold mine and a Chinese-operated copper mine.

The Cuenca Connection

Here's where it gets locally relevant. The Loma Larga project at Quimsacocha, about 35 km southwest of Cuenca, has been one of the most contentious issues in Azuay province for years.

Opponents argue the mine threatens Cuenca's drinking water supply, which originates in the paramo wetlands surrounding the project. A 2019 local referendum in Cuenca voted overwhelmingly against mining in the area, but the legal force of that vote remains disputed.

The U.S. critical minerals agreement adds a new dimension:

• Geopolitical pressure: Washington now has a strategic interest in seeing Ecuador's mining sector develop. This creates diplomatic leverage that didn't exist before
• Investment incentives: The framework promises financing access and preferential trade arrangements that could make previously marginal projects economically attractive
• China competition: With CMOC already operating at Cangrejos and Ecuacorriente (a Chinese consortium) running the Mirador copper mine, the U.S. has motivation to ensure American and allied companies don't lose ground in Ecuador's mining sector

What This Doesn't Mean

The agreement is a framework, not a license. It doesn't override Ecuadorian environmental law, bypass community consultation requirements, or automatically greenlight any specific project.

But it does signal that mining in Ecuador is becoming an issue of U.S. strategic interest -- which changes the political calculus for Ecuador's government when deciding how hard to push against local opposition.

The Bigger Picture

This agreement comes just days after Ecuador's government suspended all mining in Napo province due to catastrophic river contamination. The contrast is striking: on one hand, the government is shutting down polluting operations; on the other, it's signing international agreements to expand the mining sector.

The resolution of that tension -- responsible mining versus environmental protection -- will define Ecuador's resource policy for years to come. And for the thousands of expats who chose Cuenca partly for its clean water and natural environment, the outcome is directly personal.

Sources: U.S. State Department, Clark Hill, Mining.com, BNamericas, Trade.gov