Why all the recent news about Ecuador and its metals and mining sector?
Why are major international mining companies and investors financially committing to Ecuadorean projects and new exploration lands?
Untapped Geological Potential
- Ecuador is located between and shares geology with the renowned mining jurisdictions of Peru and Colombia, but only beginning to establish its own modern mining sector
- Spanning the Pacific coast to the high Andes, Ecuador is rich in natural resources but has been under-explored for metallic minerals - significant discoveries such as Fruta del Norte only date back to 2006, which suggest new discoveries to come
Strong Government Support
- The Government of Ecuador is firmly committed to encouraging foreign investment for economic development and views a modern mining sector as a pillar of long term economic growth - evidenced by significant legal and fiscal reforms in recent years, which have included: elimination of the windfall tax, VAT rebates, reduction in royalty rates, and new allowances for exploration drilling on early exploration permits
- Forward-thinking fiscal policies have included currency conversion to the US dollar (2000), major investments by Chinese entities (since 2000's), formal trade agreement with the European Union (2016)
Modern Infrastructure to Support Growth
- Tax and royalty revenues from oil and gas sector, have been strategically applied and reinvested in modern infrastructure projects throughout Ecuador - government and business leaders recognize the importance of infrastructure in ensuring Ecuador's long term competitiveness in Latin America
- Pacific coastline, proximity to Panama Canal, and modernizing port and highway logistics are significant global advantages
Low Energy Costs
- Ecuador is an oil producer and member of OPEC, with some of the lowest cost domestic diesel and gasoline in the Americas
- Recent investments in hydroelectric power plants provide abundant power supply to most regions at US$ 0.06 to 0.08/kWh, among lowest electricity cost in the Americas
- Ecuador is an attractive country for metals and mining sector professionals - many Ecuadoreans have extensive engineering, construction and operations experience globally, with a significant number having returned to Ecuador on current projects, a trend that is expected to continue
- Vigorous universities and technical colleges continue to train a young and eager workforce - Ecuador's leaders recognize the positive economic multiplier effects of mining and construction development
Adventus, together with local Ecuadorean partner Salazar Resources, is committed to the advancement of the Curipamba Project in central Ecuador. In addition, Adventus and Salazar are partners in a country-wide Exploration Alliance which targets new discoveries and greenfield projects - two projects (Pijili and Santiago) in southern Ecuador have been incorporated in the Exploration Alliance to date.
We recognize our responsibilities to stakeholders of Ecuador and work to ensure our reputation as a constructive partner in Ecuador's continuing economic development.