Conflicts with indigenous communities have stalled operations at Ecuador’s San Carlos Panantza copper mining project. $3 billion project bankrolled by China’s ExplorCobres S.A. as emblematic of the turmoil impeding Ecuador’s push to become an Andean mining power to rival Peru and Chile. The project had been slated to start exporting copper this year, but a dispute with the Shuar indigenous community led ExplorCobres to halt the project nearly two years ago, according to the country’s mining authority, which says the company does not believe conditions on the ground are suitable to resume work. Indigenous groups say the government did not adequately consult them about projects. The strife is undermining Ecuador’s ambitious plans to develop large-scale mining as an alternative to its oil industry.
Of the five projects with $7 billion in investment that form the backbone of the mining effort, two – including San Carlos Panantza – have completely halted. A third is relocating some facilities due to local opposition. Other projects that are less advanced face pushback from local leaders still unconvinced their communities will benefit from an industry plagued by worries about environmental damage and limited job creation. Mining industry leaders complain that such referendums change the goal posts on projects that were developed under a different set of guidelines from Ecuador’s government. Ecuador lags Chile and Peru in mining development despite having what are believed to be ample deposits of copper and gold. It has not completed enough exploration to determine total mineral reserves. Ecuador is prepared to adjust timeframes so concessions do not expire due to social conflicts.