Mineral mining is a significant source of livelihood for people in many places across the globe. One of such places include Ecuador. This is a nation that has built its reputation as a producer of oil and gas over the years. But that story is beginning to change. Oil and gas are not all there is in that nation… there is a growing interest in the potential for gold mining in the country.
Historically, gold mining in Ecuador goes way back in the 16th Century, where gold was reported to have been recovered from Nambija as well as the shores of Rio Santa Barbara. A good number of reports regarding gold mining in Ecuador are centered in the southern region, with El Oro Province holding records in gold mining especially in the town of Zaruma and Portovelo.
Much of the historic mining was on a small-scale, and done by indigenous people to make a modest living. However, in recent years there has been growing interest from the gold mining industry. Some recent exploration has revealed that the country is endowed with world class gold deposits which are particularly located in the southeast region of the country.
Gold may be the “hidden gem” of Ecuador, and a boom in exploration permits in the past year is likely to start the groundwork for major mining in the very near future.
Outside Investment in Mining Exploration
The past decade has had slow growth in the gold mining sector in Ecuador. While many other countries were expanding their mining operations as a result of record-high gold price, the leaders of Ecuador halted the release of new exploration permits over disagreements with mining companies over fees paid to the government.
After a 6-year pause, the country is once again issuing permits and exploration has started. Mining companies from around the globe have their attention set on Ecuador, with billions of dollars of investment expected over the next decade.
The Fruta Del Norte Project is located in the Amazon Province of Zamara Chinchipe in the southern region of the country. And it has been revealed that close to 4.82 million ounces of gold are in the reserves with an estimated annual production of 300,000 ounces of gold over 15 years of gold production. This is one of the largest and highest grade gold operations in Latin America.
The success of this mine has led to a boom in exploration efforts in the surrounding area. Mining companies from Canada and Australia are now conducting preliminary research in areas that have never been examined before.
The great potential of gold mining in Ecuador is something that cannot be over emphasised looking at how several companies are willing to make foreign-direct investments in that particular country only for gold mining. The Pacto, La Bonita and Nanguipa projects are among the leading gold mining ventures currently underway. Major new discoveries are being reported every year.
Alluvial Gold Placers in the Rivers of Ecuador
Interestingly, Ecuador is one of a few places in the world that have rivers known to have great potential for gold mining, yet are still unexplored to this day. For instance, Santiago River and Cayapas Rivers are known to be fed by gold bearing river channels that proceed from the southeast as well as the northwest. The two rivers provide gravel that is good for gold extraction. Esmeraldas Province is known to be the source of some rich beach placers.
Alluvial deposits may be of more interest to the local artisanal miners than the large companies, who are generally focused on larger deposits that can be mined with heavy equipment. Placer gold is recovered using methods like suction dredging and highbanking. In remote areas that have seen little to no mining in the past, these deposits can be exceedingly rich and should be of considerable interest to small-scale prospectors.
There is a lot of gold panning that is undertaken by the Kichua people along the shores of several rivers around the Amazon. And reports show that the Andes Mountains has been a source of this gold, which is washed down especially when a storm occurs.
Read: Huge Gold Mines in Brazil’s Amazon Jungle
Potential for the Future
Ecuador’s gold mining industry has been growing steadily after the government introduced policies that are flexible for business, especially where it concerns attracting foreign investments. The country has great potential for gold mining. Having said that, there are also many challenges.
Corruption is a challenge in many Latin American countries, and transparency and long-term stability is required for successful mining ventures. The difficulties in operating in a country with these challenges has to be weighed against the positives of rich mineral wealth.
Surrounding countries have made it work. Brazil and Peru have made a fortune from gold mining, and there is no reason to believe that Ecuador cannot do the same.
And with the extent of new ore discoveries that have yet to be mined, one could make a good case that Ecuador is poised for a major gold rush in the coming decades.
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