Ecuador Signs $1.7B Mining Deal with CMOC Group
Mining News | 2026-04-28 07:07:38
CMOC Group acquired the project in 2025 through its takeover of Lumina Gold and aims to accelerate its development, which is currently in the design and planning phase.
By Paul Ploumis
SEATTLE (Scrap Monster): Ecuador has finalized a $1.7 billion mining agreement with a local subsidiary of CMOC Group to develop the Los Cangrejos gold project in El Oro province, marking a major step in the country’s efforts to expand its mining sector.
The project, operated by ODIN Mining del Ecuador, is expected to generate approximately $4.39 billion in revenue for the state through taxes, royalties, and related payments. Under the agreement, the government will retain a 50% share of the project’s value and receive $54 million in advance royalties, including $34 million upon signing, with additional payments tied to construction milestones.
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CMOC Group acquired the project in 2025 through its takeover of Lumina Gold and aims to accelerate its development, which is currently in the design and planning phase.
Despite its potential, Ecuador’s mining sector continues to face challenges, including regulatory changes and community opposition. At present, only two large-scale mines—Fruta del Norte and Mirador—are operational.
The deal underscores growing Chinese investment in Latin America’s resource sector and signals Ecuador’s intent to boost long-term mining revenues.
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What is the biggest risk to the project’s success?
Frequently Asked Questions
- What is the significance of the $1.7 billion mining deal?
The agreement marks a major step in expanding Ecuador’s mining sector and attracting foreign investment.
- Who is leading the Los Cangrejos project?
The project will be operated by ODIN Mining del Ecuador, a subsidiary of CMOC Group.
- What financial benefits does the government receive upfront?
The government will receive $54 million in advance royalties, including $34 million upon signing.
