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Friday, Feb 14, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.

Mining

Ecuador bans mining in Quito’s neighbouring forest and Amazon oil development

‘Today, Ecuador took a giant step to protect life, biodiversity and Indigenous peoples,’ said the country’s Indigenous confederation

Ecuador bans oil development in Amazon and mining in Quito's neighbouring forest
Ecuador's Indigenous confederation celebrates results from Sunday's referendums at a press conference in the country's national cultural centre. Photo via the CONAIE

Ecuador’s citizens have voted to prohibit mining in Quito’s neighbouring forest and ban oil exploration in a section of the Amazon.

“A historic decision to protect the biodiversity of the Chocó Andino: yes for a Quito full of life, without mining,” said the country’s Confederation of Indigenous Nationalities of Ecuador (CONAIE) on Monday with regard to the decisions the previous day.

The voting took place during the first round of the country’s presidential elections on Sunday and the results were celebrated among domestic Indigenous groups.

“Finally, we are going to kick oil companies out of our territory! This is a major victory for all Indigenous peoples, for the animals, the plants, the spirits of the forest and our climate!” said Waorani Indigenous leader Nemonte Nenquimo.

The motion to ban oil development in a section of the country’s Yasuni Amazon reserve passed with over 58 per cent approval and 68 per cent of voters said yes to banning mining in the Chocó Andino forest near the nation’s capital, thereby thwarting mineral exploration efforts in six gold mining concessions.

However, the decision is expected to cost the country billions in revenue and the state’s national oil company Petroecuador now has one year to vacate from its applicable area of operations within the Yasuni reserve. The country’s Energy Minister Fernando Santos told media that ceasing the oil drilling would cost Ecuador US$1.2 billion annually and be detrimental to the economy.

Ecuador’s mining chamber says the ban on mineral exploration will cost the South American nation approximately US$1 billion over the next two years.

Mining accounted for US$2.8 billion of the country’s revenue last year and was the fourth most significant source of Ecuador’s income behind oil, bananas and shrimp.

Read more: NevGold completes maiden mineral resource estimate for Nutmeg Mountain in Idaho

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The news follows the Constitutional Court of Ecuador suspending an order issued by President Guillermo Lasso at the end of May permitting environmental consultations for mining and oil projects in the areas.

Lasso wanted to accelerate the permitting process for natural resource extraction projects in the country prior to the end of his term this month but his efforts have now been significantly thwarted by the recent voting and Indigenous opposition.

The petition launched in support of banning mining in the Chocó Andino forest near Quito, which received over 37,500 signatures, was ultimately successful. The Yasuni national park is home to some of the world’s last truly isolated Indigenous communities and hundreds of different trees, birds, amphibians, reptiles and other wildlife.

Read more: Ecuador court halts consultations on mining projects over Indigenous opposition

 

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