Background on DPM Metals and the Loma Larga Project
DPM Metals, formerly known as Dundee Precious Metals, acquired the Loma Larga mining project in 2021. The project is a gold exploration plan located in an environmentally sensitive area near Cuenca, Ecuador. DPM Metals intended to develop a subterranean mine with an expected lifespan of 12 years, attracting investments estimated around $419 million for annual production of approximately 200,000 ounces of gold during its first five years.
Government Decision and Reasons
On Saturday, the Ecuadorian government announced it revoked the environmental license granted to DPM Metals for the Loma Larga project. This decision was based on technical reports submitted by the Municipality of Cuenca and the Prefecture of Azuay, responsible for water provision and irrigation systems in the region.
“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 Cuenca and Azuay residents,” stated the Ecuadorian Ministry of Environment and Energy.
The revocation came after strong opposition from local residents and Azuay province authorities, who argued that the project would negatively impact the Quimsacocha water reserve, posing significant health risks to nearby communities.
Quimsacocha Water Reserve and its Importance
The Quimsacocha water reserve spans over 3,200 hectares and includes paramos systems and their springs, forming one of the most important water reserves in South America. Local residents and authorities have expressed concerns about efficient and responsible environmental management in this sensitive area.
Community Opposition and Legal Victories
The people of Azuay have consistently rejected mining projects in their territories through voting, benefiting from legal decisions that have suspended the advancement of such projects in their jurisdiction.
In August, the Ecuadorian government had already suspended project-related activities until DPM Metals published an environmental management plan, despite having granted a construction license just a month prior.
Cuenca’s mayor, Cristian Zamora, welcomed the license revocation during a public event, stating, “This has been a decades-long struggle. That mining project would have caused irreversible contamination and threatened the water supply in Cuenca.”
Key Questions and Answers
- Who is DPM Metals? DPM Metals, formerly known as Dundee Precious Metals, is a Canadian mining company that acquired the Loma Larga project in 2021.
- What is the Loma Larga project? It’s a proposed gold mining project located in an environmentally sensitive area near Cuenca, Ecuador, with plans for a subterranean mine expected to operate for 12 years.
- Why was the environmental license revoked? The Ecuadorian government revoked the license based on technical reports from local authorities, citing concerns about potential negative impacts on the Quimsacocha water reserve and nearby communities’ health.
- What is the Quimsacocha water reserve? It’s a significant water reserve in south America, spanning over 3,200 hectares and including paramos systems and their springs.
- How have local residents been involved? Residents of Azuay have consistently opposed mining projects in their territories, benefiting from legal decisions that have suspended project advancements.
