Mapping Ecuador’s future: The path to organized mining

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In 2018, Ecuador closed its mining cadaster – a technological tool that maps areas granted under concession and enables the allocation of new mining concessions.

Despite several promises to reopen the cadaster, it remains closed. However, last month, President Daniel Noboa issued an executive decree ordering the update of the tool within 90 days.

According to Noboa's directive, the cadaster must include a record of concessions, authorizations, licenses, registrations, certificates and permits granted, revoked or canceled, facilitating oversight by each institution.

In addition to updating the cadaster, Noboa instructed the ministries of environment, and energy and mines, as well as mining regulator Arcom, to collaborate with the national police and armed forces to coordinate actions to identify illegal mining activities across the country.

BNamericas speaks with deputy mining minister Rebeca Illescas about the steps being taken to clean up the mining cadaster and pave the way for new areas to be allocated for mining development.

BNamericas: How are efforts progressing to reopen the mining cadaster?

Illescas: Public mining policy neither begins nor ends with the reopening of the cadaster. In 2018, due to political decisions, the cadaster was closed, meaning it was decided that no more concessions would be granted.

At present, a technological tool has been contracted as part of a loan agreement with the Inter-American Development Bank. This tool is not only linked to reopening the cadaster but also enables a project to strengthen inter-institutional cooperation and improve the mining regulator's capacity for better implementation of public policy.

I've been working to unlock the process. I had an initial meeting with the Canadian company tasked with this work, and we're adjusting the timeline, which had been extended to 2026, something we didn't consider appropriate.

We're prioritizing efforts to ensure an early rollout of information from the cadaster as a first step.

BNamericas: What will this early rollout entail?

Illescas: It involves reviewing concessions and conducting a thorough cleanup. We aim to have an initial report by the end of December to assess and clean up over 8,000 concessions mapped in the cadaster. This will give us clarity on what we have and what actions need to be taken.

We expect the tool to be ready next year, allowing us to begin making decisions about granting new concessions. It’s necessary to allocate areas, and we will move forward with that.

BNamericas: Will the cadaster be reopened in stages and by areas, as previously envisioned?

Illescas: A strategy is needed for opening up areas. It’s essential to first allocate areas to regularize some activities because, unfortunately, the lack of issued titles by the State has, in some ways, encouraged illegality.

We must understand the historical dynamics of how this activity has functioned and, based on that, establish order and control. This isn't an easy task, but it's part of our responsibility.

The strategy for granting titles must also consider geological factors. Unfortunately, we lack geological information and face basic issues, such as discrepancies between cadastral and cartographic maps.

For example, the ministry of energy and mines, the ministry of environment, and the military geographic institute each use different mapping systems for the mining cadaster. Aligning these is already a challenge.

Additionally, any plan must include political strategy and actions that consider social and environmental sensitivities, ensuring that reopening the cadaster doesn’t create unrest. It’s crucial for communities to know that mining will take place in areas where it has historically been conducted and understand that this activity can support their development.

We recognize that some areas are more sensitive and will be addressed later, once we have greater certainty about how to proceed.

BNamericas: So, the cadaster will indeed be reopened in stages?

Illescas: Yes, it should be done in stages and by sectors. Ideally, we would define districts for both large-scale and small-scale mining.

However, this cannot yet be achieved as we're still in the process of exploring the country.

I hope to have more clarity by the end of December and to reopen the cadaster next year. This not only involves identifying areas but also developing the necessary regulations and guidelines for granting them.

For instance, we're revising the guidelines for allocating areas for both small-scale and large-scale mining.

The areas previously allocated for exploration were granted through a rigorous and commendable process supported by the international company Wood Mackenzie. However, there are aspects to improve, and we will address them, learning from past mistakes.

BNamericas: The decree signed by President Noboa set a 90-day deadline to update the cadaster. Will this be achievable?

Illescas: It's a debt owed by the State. Not knowing how many concessions we have, where they are, or who holds them causes greater harm, including environmental, social and economic damage.

In disorder and chaos, those who act opportunistically prevail, and that’s what we must avoid.

BNamericas: At the ENAEP 2024 [mining event], the importance of developing the southern mining district, which includes key projects, was highlighted. What are the prospects for strengthening it?

Illescas: Certain provinces in the country are known to be more mineralized, but the information we have is very preliminary.

However, in provinces like Zamora – home to the Fruta del Norte and Mirador mines – it’s clear that further mining development is possible. These areas have both large-scale and small-scale mining projects.

Morona Santiago, Zamora Chinchipe, Imbabura, Azuay, Loja and El Oro are provinces with a mining history.

Sometimes, there’s a misconception that companies enter untouched territories, but that’s not the case. For instance, in the La Plata project area, which has geological information, there are also small-scale mining activities.

These areas should be the first focus for bringing order and ensuring that all mining activities are conducted properly and with respect for the environment.

The fact that minister Inés Manzano oversees both the ministry of energy and mines and the ministry of environment is an advantage. We're working responsibly and in coordination. For instance, the ministry of environment is currently reviewing pending applications.

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