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Mining in Ecuador has entered a new phase with the signing of a US$ 1.7 billion agreement between the government and the Chinese group CMOC for the Los Cangrejos project, an asset considered one of the most important in the country and a central piece in the attempt to unlock investments, increase public revenues, and expand large-scale mineral production
Mining in Ecuador received a decisive boost with the signing of a US$ 1.7 billion agreement between the Ecuadorian government and the Chinese group CMOC to develop the gold and copper project Los Cangrejos, in the province of El Oro, about 450 kilometers southwest of Quito. The contract was signed with the local subsidiary ODIN Mining del Ecuador and could help transform the deposit into the third major mine in the country.
The agreement was announced at a time when President Daniel Noboa is trying to rebuild investor confidence in a sector that has been stalled for years due to legal disputes, regulatory uncertainties, and community resistance. Besides the immediate financial impact, the project draws attention because it could yield the Ecuadorian state about US$ 4.39 billion in taxes, royalties, and other payments over the mine’s lifespan, consolidating mining as one of the pillars of the country’s economic strategy.
What the mining agreement represents for Ecuador
The mining contract with CMOC goes beyond authorization for a single project. It serves as an important test to see if Ecuador can indeed unlock large-scale investments in a sector that has been losing momentum due to political, legal, and social barriers.
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The government bets that Los Cangrejos can become a symbol of a new phase of Ecuadorian mining, with more foreign capital, more regulatory predictability, and greater state participation in the income generated by mineral resources. At the same time, the agreement highlights the size of the official bet on expanding the sector as a tool for economic growth.
The numbers that explain the size of the project
The values involved help to gauge the importance of Los Cangrejos. The total projected investment is US$ 1.7 billion, while the Ecuadorian state will have a 50% stake in the project value and is expected to receive about US$ 4.39 billion over the mine’s lifespan through taxes, royalties, and other payments.
Additionally, Quito will receive US$ 54 million in advance royalties, with US$ 34 million upon signing the contract and the remainder linked to construction milestones. In a sector that has been stalled by regulatory insecurity, these numbers make the agreement one of the most significant moves in recent mining in Ecuador.
Why Los Cangrejos is seen as a strategic asset
Los Cangrejos is considered one of the largest gold deposits in Ecuador and one of the main mining assets yet to be explored in the country. According to the 2023 pre-feasibility study cited in the base, the project could become an open-pit mine with a 26-year lifespan.
The expectation is for an average annual production of 371 thousand ounces of gold and 41 million pounds of copper. The same study indicated resources of 1.08 billion tons, with a grade of 0.55 g/t of gold and 0.11% of copper, containing 16.8 million ounces of gold and about 2.6 billion pounds of copper. The inferred resources add another 179 million tons, with 2.2 million ounces of gold and 355 million pounds of copper.
How China fully entered the project
CMOC took control of Los Cangrejos after acquiring the asset through the purchase of the Canadian company Lumina Gold in 2025 for US$ 420 million in cash. Although the project is still in the planning and design phase, the expectation is that the new contract will accelerate the development of the mine.
This step reinforces the Chinese presence in a sector that is becoming increasingly relevant in Ecuador. By taking over one of the country’s most valuable and yet unexplored assets, CMOC increases its weight in an industry that could reshape the Ecuadorian mineral economy in the coming years.
The new mining law attempts to unlock investments
The project’s progress comes shortly after the approval of a new **mining** law at the end of February. According to the source, the change seeks to resolve old obstacles by reforming environmental licensing, introducing a more comprehensive environmental authorization system, and simplifying approval processes, while maintaining state oversight.
The new structure also altered the flow of royalties, with rates between **3% and 8% of sales**, and allocated most of this revenue to local governments. **The intention is to reduce social tensions around mining projects and try to build a more stable environment for large-scale investments**.
The government wants more security and a crackdown on illegal mining
In addition to regulatory changes, Daniel Noboa’s government promised to reinforce security in mineral-rich areas and intensify the fight against **illegal mining**. This point is central because the sector’s progress depends not only on licenses and contracts but also on the state’s ability to control territories and provide predictability to investors.
In practice, this means that the success of Los Cangrejos may depend as much on economic execution as on political and operational stability around the project. **Without security and without reducing conflict in mineral areas, the billion-dollar promise of mining may continue to face significant obstacles**.
China expands dominance over Ecuador’s mining
The agreement with CMOC is not an isolated case. The source shows that Chinese companies already control several of Ecuador’s most advanced copper and gold projects, giving them a dominant role in the country’s future mineral supply.
In March, **Jiangxi Copper** completed the acquisition of **SolGold**, responsible for the **Cascabel** project in northern Ecuador. Another contract is still expected for the expansion of **Mirador**, operated by **Ecuacorriente**, a subsidiary of **Tongling Nonferrous Metals Group** and **China Railway Construction Corp**. **As a result, Ecuadorian mining is becoming increasingly dependent on Chinese capital and execution to get off the ground**.
What this movement reveals about Ecuador’s strategy
The case shows that the Noboa government is trying to balance economic and geopolitical interests. Even while maintaining close ties with the United States and American president **Donald Trump**, Quito continues to deepen trade and investment relations with Beijing.
The expectation of a new state visit by Noboa to China in August reinforces this approach. The government has already indicated that Ecuador needs to maintain diversified relationships with its main partners. **In practice, Los Cangrejos shows that, in the field of mining, Chinese investment continues to be seen as fundamental for getting large projects off the ground**.
Los Cangrejos could pave the way for new projects
The Chinese project is part of a larger movement to expand Ecuador’s mineral sector. The source mentions other assets that are also advancing, such as **Warintza**, by Solaris Resources, in Morona Santiago province, and **El Domo**, in Curipamba, led by Silvercorp Metals.
The **Bramaderos** and **El Palmar** projects by Sunstone Metals are also under exploration, while Lundin Gold seeks to expand its operations in **Fruta del Norte**. **Together, these ventures could form the basis of a broader and more diversified mining industry in Ecuador, provided the political and regulatory environment truly stabilizes**.
Why this agreement could mark a turning point
The CMOC contract represents more than an isolated investment in gold and copper. It tests Ecuador’s new **mining** rules, measures the country’s ability to attract large-scale capital, and reveals the extent to which the government will be able to balance public revenue, local benefits, and political stability.
If Los Cangrejos advances as planned, the project could become a benchmark for the new phase of Ecuadorian mining. If it stalls, it could reinforce the perception that the country still faces deep barriers to transforming geological potential into real growth.
In your view, can this billion-dollar mining agreement truly usher in a new era for Ecuador, or could the dependence on Chinese capital and local tensions still hinder this leap before it is confirmed?
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