Ecuador’s first major copper mine to debut in 2018

OREANDA-NEWS. June 28, 2016.  Chinese firm Ecuacorriente plans to start production at Mirador, Ecuador's second largest known copper deposit, by 2018.

The mine will reach its full potential by 2020 with a projected output of some 30,000 t/d of copper concentrate, mining minister Javier Cordova told Argus.

Ecuacorriente has a 25-year concession for Mirador. The company is a subsidiary of Corriente Resources, which in turn is controlled by a 70:30 joint venture between China's state-owned Tongling Non-ferrous Metals Group Holdings and state-owned China Railway Construction.

Ecuacorriente is currently building an open-pit mine that should be ready by the end of 2017 with a \\\$1.5bn investment, of which \\\$500mn will be spent this year.

The Mirador concession covers 2,995 hectares in El Pangui municipality, in the southern province of Zamora Chinchipe, close to the border with Peru. Mineral reserves at Mirador total 3.49mn tons of copper, 32.69mn ounces of silver and 3.95mn ounces of gold.

"After the project reaches its designed production capacity, the annual output of copper concentrate will amount to 354,000 tons. The grade for concentrates of copper, gold and silver is expected to be 26.3pc, 5g/t and 54.46g/t, respectively," according to a report from China Railway Construction.

Ecuacorriente plans to build a 129MW run-of-river power generation plant in El Pangui, over the Machinaza river, to supply the mine. The company has already secured an environmental permit to construct the facility, according to official documents seen by Argus.

In addition, Ecuacorriente is considering building an export terminal in the coastal province of El Oro by 2018.

ExplorCobres, another subsidiary of Corriente Resources, holds the rights to Panantza San Carlos, considered Ecuador's largest known copper deposit.

Panantza San Carlos, located in the southeastern province of Morona Santiago, could be up to three times bigger than Mirador, Cordova says.

Developing Panantza San Carlos could require a \\\$6bn investment, but exploration activities there were halted in November 2006, after 20 families claiming ownership of the land partially invaded the concession area and destroyed ExplorCobres' Rosa de Oro camp.

Cordova says the government is in talks with the families and that there is a "presidential compromise" to solve the conflict as soon as possible to resume exploration at the site.

Ecuador new 1,500MW Coca Codo Sinclair hydroelectric project, scheduled to be fully operative by the end of the year, is expected to supply power to the Panantza San Carlos project.