China, Ecuador sign $1.7B deal on gold project

Ecuador has signed a $1.7-billion (C$2.32-billion) mining contract with China’s CMOC Group for the Los Cangrejos project, one of the country’s largest gold deposits, a move that could establish a third large-scale mine as Quito tries to revive a sector stalled for years.

The agreement gives the state a 50% share of project value at the deposit in El Oro province, about 450 km southwest of Quito, the energy ministry said Monday. The development is forecast to generate about $4.39 billion in state revenue. Ecuador is to receive $54 million in advance royalties, including $34 million on signing, with the balance tied to construction milestones.

The deal comes as Quito moves to rebuild investor confidence in a sector long slowed by community opposition, litigation and shifting regulations. The country has only two large-scale mines in operation — Lundin Gold’s (TSX: LUG) Fruta del Norte and the Chinese-backed Mirador copper mine — both of which entered production in 2019.

A new mining law approved in late February aims to address those bottlenecks by overhauling environmental permitting, introducing a broader “environmental authorization” system and streamlining approvals while maintaining oversight. The framework also revises royalty flows, setting rates at 3% to 8% of sales and directing a majority of proceeds to local governments.

Takeover

CMOC acquired Los Cangrejos through its 2025 takeover of Lumina Gold in a $420-million all-cash deal. The site could become a 26-year open-pit operation producing on average about 371,000 oz. gold and 41 million lb. copper annually, according to a 2023 pre-feasibility study.

The project hosts 1.08 billion indicated tonnes grading 0.55 gram gold per tonne and 0.11% copper for 16.8 million oz. contained gold and about 2.6 billion lb. copper, the study shows. Los Cangrejos also holds 179 million inferred tonnes at 0.41 gram gold and 0.09% copper for 2.2 million oz. gold and 355 million lb. copper.

Ecuador’s project pipeline includes a mix of copper and gold assets at different stages. Solaris Resources (TSX: SLS; NYSE: SLSR) is advancing its Warintza copper project in Morona Santiago province, while SolGold (LSE: SOLG) continues to push its Cascabel copper-gold discovery in Imbabura.

Curipamba

Nearer-term development is led by Silvercorp Metals (TSX: SVM; NYSE: SVM) at the Curipamba project’s El Domo deposit, where construction is advancing towards first production later this decade. Exploration work is also under way at Sunstone Metals (ASX: STM)’ Bramaderos and El Palmar projects.

These projects sit alongside expansion work at Lundin Gold’s Fruta del Norte mine, the country’s flagship gold operation, as Ecuador looks to move beyond a two-mine base towards a broader production profile.

Ecuador’s push comes under President Daniel Noboa, a pro-business leader who took office in November 2023 after a snap election and won a full four-year term in April 2025. His administration has made mining a pillar of its economic strategy.

Noboa is pitching reforms as a way to provide clearer rules and cut approval timelines that have stretched to about two years. He also wants to strengthen security in mineral-rich regions while curbing illegal mining.