Ecuador, SolGold, sign contract for Cascabel gold, copper mine

SolGold

06/06/2024 14:52

By Alexandra Valencia
       QUITO, June 6 (Reuters) - The mining company SolGold
 SOLG.L  has signed a contract with Ecuador to develop the
Cascabel gold and copper project, which is set to generate
investment of over $4.2 billion during its 28 years of
operation, the energy ministry said late on Wednesday.
    Cascabel, in the province of Imbabura, is considered a major
deposit of gold, copper and silver.
    The project "will generate $6.7 billion in income for the
state because of industry and general taxes, as well as
royalties of about $1.61 billion," the ministry said in a
statement.
    "This contract represents a new era of economic development
for Ecuador, demonstrating our commitment with the promotion of
investment and sustainable development in the mining sector."
    SolGold, founded in Australia, is listed on the London and
Toronto stock exchanges.
    Though a subsidiary of China's CRCC-Tongguan already
operates a copper mine in Ecuador and Canada's Lundin Gold
operates a gold mine, several potential large projects have been
delayed by opposition from Indigenous communities and court
rulings.
    

 (Reporting by Alexandra Valencia;
Writing by Julia Symmes Cobb; Editing by Kevin Liffey)
 ((julia.cobb@thomsonreuters.com; +57-316-389-7187;))