Ecuador Prioritizes Environment Over Mining: Loma Larga License Revoked
Ecuador's government has made a significant move in prioritizing environmental conservation over mining development. The decision to revoke the environmental license for the Loma Larga gold project in one of the country's most ecologically sensitive regions underscores the growing influence of local communities and environmental advocates in shaping national resource policies.
The Loma Larga project, with a planned capital investment of $419 million and projected annual gold production of approximately 200,000 ounces, faced strong opposition from local communities who rely heavily on the Quimsacocha watershed for drinking water, irrigation, and cultural practices. The Quimsacocha water reserve, spanning over 3,200 hectares, was central to this decision due to its vital water resources and unique ecosystem.
Comprehensive technical reports from local water management authorities in Cuenca and Azuay provinces highlighted significant risks to drinking water supplies and irrigation systems. These findings, along with large-scale protests in September 2025, led to the revocation of the license. The decision reflects a growing recognition of water security as a national priority and demonstrates how the permitting process can influence major resource development decisions.
The revocation of the Loma Larga project's license signals heightened scrutiny of environmental impacts, particularly in water-sensitive regions, and increased importance of securing genuine community support before significant investment. This decision establishes important precedents that will likely influence mining development throughout Ecuador and potentially beyond, with environmental concerns potentially overriding economic development priorities.
