Ecuador Junks License of Canada’s DPM to Develop Gold Project

Ecuador’s government has revoked the environmental license granted to Canadian mining company DPM Metals for the development of Loma Larga, a gold project in an environmentally sensitive area, the government said, Alexandria Valencia reported for Reuters.

Loma Larga is a gold project in an environmentally sensitive area. (Photo: DPM Metals) 

The decision follows strong opposition from residents and local authorities in Azuay province, where Loma Larga is located.

They argue that its development would affect the Quimsacocha water reserve, posing significant health risks to local communities.

Ecuador’s Environment and Energy Ministry said in a statement that the decision was based on technical reports submitted by authorities in Cuenca and Azuay, who oversee the area’s drinking water and irrigation systems.

“The national government reaffirms its commitment to the rights of nature, the defense of water sources, and, under the precautionary principle, the protection of the health and well-being of the people of Cuenca and Azuay,” the statement said.

Cuenca Mayor Cristian Zamora, one of the leading voices opposing the mine, thanked the authorities for listening and revoking the project’s license, which he said would have seriously threatened the water supply for residents.