Gold Rush: Fruta del Norte Hits $1.8 Billion in Exports as Prices Cross $5,000 an Ounce

Gold has quietly become one of the most important stories in Ecuador’s economy — and the numbers are getting hard to ignore.

The Record

Canada’s Lundin Gold reported that its Fruta del Norte mine — Ecuador’s first and largest underground gold operation, located in Zamora-Chinchipe province in the southeastern Amazon — exported approximately $1.8 billion worth of gold in 2025. That’s a 50.9% increase over 2024’s $1.19 billion, making it the highest export figure since the mine began production in late 2019.

The mine produced 498,315 ounces of gold in 2025, processing an average of 5,271 tonnes of ore per day at a grade of 8.7 grams per tonne. To put that in perspective: for every tonne of rock extracted, only about 5% yields usable ore, and that ore produces roughly 10 grams of gold.

The government’s take: $432 million in income tax, royalties, and profit-sharing — also a record.

The Price Explosion

The export surge is driven as much by price as production. Gold crossed $5,000 per ounce for the first time in early February 2026, trading at approximately $5,057 as of mid-February. The trajectory has been extraordinary:

| Date | Gold Price (USD/oz) | |------|-------------------| | February 2025 | $2,904 | | January 2026 | $4,616 | | February 11, 2026 | $5,072 |

That’s a 74.6% increase in one year. JPMorgan projects gold could reach $6,300 per ounce by the end of 2026, driven by central bank buying, geopolitical uncertainty, and inflation hedging.

For a dollarized economy like Ecuador’s, where currency devaluation isn’t an option, high gold prices translate directly into more dollars flowing into the economy.

$100 Million in New Exploration

On February 12, Lundin Gold announced it will invest $100 million in exploration across its Ecuadorian concessions in 2026, with 133,000 meters of drilling planned using 18 active rigs (7 underground, 11 surface).

The company also revealed a significant discovery: a fifth copper-gold porphyry system named Chontas, located approximately 7 kilometers south of the main Fruta del Norte deposit. This doubles the known mineralized corridor to over 10 kilometers and signals potential for an entirely new mine alongside the existing gold operation.

Lundin’s current proven reserves stand at 5.54 million ounces, with production guidance of 475,000-525,000 ounces annually through 2028. The original mine life extends to 2031, but the aggressive exploration program aims to push that horizon significantly further.

Mining Is Reshaping Ecuador’s Export Profile

Mining is rapidly closing the gap with Ecuador’s traditional export pillars:

| Sector | 2024 Exports | Trend | |--------|-------------|-------| | Oil & Petroleum | ~$10B | Declining production | | Shrimp | ~$7B | Facing tariff headwinds | | Bananas | ~$4B | Stable | | Mining | ~$3B | Growing fast |

The Ecuador Mining Chamber projected total mining exports (all minerals) of $4 billion in 2025 — up from $3 billion in 2024 and $2.77 billion in 2022. Mining now accounts for roughly 8.9% of total exports and analysts project it could reach 15%.

The sector contributed $1 billion in taxes and royalties in 2024, employing an estimated 96,800 workers directly and indirectly.

The Bigger Pipeline

Fruta del Norte isn’t alone. Several major projects are reshaping Ecuador’s mining landscape:

• Cascabel (SolGold, Imbabura province): Early construction starting first half of 2026, first copper-gold production targeted for January 2028. China’s Jiangxi Copper has made a $1.13 billion takeover bid for SolGold
• Mirador (ECSA/Chinese consortium, Zamora-Chinchipe): Ecuador’s first large-scale copper mine, resumed full production in January 2025. Phase II expansion could double output by 2028
• Curipamba-El Domo (Silvercorp/Salazar, Bolívar province): Under construction, targeting production by late 2026 with a $240 million investment
• Loma Larga (DPM Metals, near Cuenca): Environmental license issued but drilling halted after over 100,000 people marched in Cuenca in September 2025, citing threats to freshwater sources. Decision authority handed to Azuay provincial officials

The Policy Shift

President Noboa has positioned mining as a strategic priority. Key policy changes:

• Mining Registry reopened for the first time since 2018 (a seven-year freeze), with a new digital platform for concession applications
• Executive Decree 273 revised royalty formulas to 3-8% of revenues for medium and large-scale operations
• Electrical self-sufficiency requirement: New mining projects must provide 100% of their own power, shifting infrastructure costs off the national grid
• A proposed mining inspection fee targeting $229 million in revenue has drawn opposition from the Mining Chamber, which warns it could discourage exploration investment

The Shadow Side

The gold boom has a darker dimension. Organized crime groups — including Los Lobos and Los Choneros — have infiltrated artisanal and small-scale mining operations, using illegal gold extraction to fund their organizations. In October 2025, the military deployed 500 soldiers to Imbabura province and destroyed over 720 illegal mine entrances. Environmental reports document toxic metal concentrations up to 352 times above permissible limits in some mining areas.

What This Means for Expats

• Economic tailwind: A booming mining sector brings more dollars into Ecuador’s dollarized economy, supports government revenue, and creates employment — all positive for economic stability
• The Cuenca connection: The Loma Larga mine controversy is the most politically charged environmental issue in the Cuenca expat community. Over 100,000 people marched against it in September 2025, and the project’s future remains uncertain. If you live near Cuenca, this story directly affects local politics and community sentiment
• Investment opportunity: With gold above $5,000 and JPMorgan projecting $6,300, mining company stocks tied to Ecuador (Lundin Gold on TSX, SolGold on LSE) have significant exposure to these price movements
• Regional development: Zamora-Chinchipe, where Fruta del Norte operates, is seeing infrastructure investment and job creation that’s transforming a historically remote province. Similar dynamics are expected in Imbabura (Cascabel) and Bolívar (Curipamba)
• Environmental watch: Mining’s expansion comes with legitimate environmental concerns — particularly around water quality and deforestation. Expats in the southern sierra should monitor the Loma Larga situation, as it could set precedent for how Ecuador balances mining revenue against environmental protection

Sources: Expreso, Lundin Gold, MINING.COM, Primicias