Big fight is brewing over proposed gold mine as mayor and energy minister trade insults

During her Wednesday visit to Cuenca, Energy Minister Inés Manzano called the city’s environmental study of the proposed Loma Larga gold mine a “lie and a distortion.” The study, conducted by the public utility company Etapa, claimed the mine would contaminate water sources in the Cuenca canton, contradicting a Mining Ministry report that there would be no adverse impact.

When the Loma Larga mine project, south of Cuenca, was given the green light in January, a small group of protesters was outnumbered three to one by soldiers and police.

The Ministry of Mining gave the go-ahead to the Loma Larga project, located 25 kilometers southeast of Cuenca, in January. The Canadian company Dundee Precious Metals says it has all the necessary permits to begin work in September or October.

Manzano claimed that Cuenca Mayor Cristian Zamora, who opposes the mine, of failing to control illegal mining in the canton. “I would first ask the mayor to stop the illegal mining in Molleturo before criticizing a legal mine that has been approved by the national government,” she said. She added that the Etapa study was “politically motivated to meet the mayor’s anti-mining agenda.”

Manzano added that the government is considering ending Etapa’s management of the Cajas National Park west of Cuenca. “If they spread lies about this mine I would question their ability to manage the park, which they currently do at the discretion of the government.”

Zamora responded to Manzano, saying she was ignorant of the separation of government powers. “The responsibility of controlling illegal mining rests with the national government, not with the GADs [city and provincial governments],” Zamora said. “I invite the minister to take a look at the constitution so she can understand the roles of the various governmental entities. The city of Cuenca does not have an army or an armed police force to confront criminals.” He added that he “fully supports” all efforts to illuminate illegal mining in the Cuenca jurisdiction and will assist the government in its efforts.

Zamora says he “stands steadfast” against any project that harms Cuenca’s water sources. “I remind the minister that three years ago, 80% of Cuencanos voted against mining that will affect our water quality and I ask her and the government to put the interests of the citizens first when it grants mining concessions.”

Both supporters and opponents of Loma Larga agree a major fight could be brewing. “This could be a very big confrontation, maybe the biggest since the indigenous protests in 2019 and 2022,” says Edgar Loffredo, a former researcher for the Mining Ministry. “When development of the mine begins, you could see thousands of indigenous, campesino and environmental protesters converge on Victoria del Portete and their mission will be to shut down the mine, like they did at Rio Blanco in Molleturo.”

The Chinese-owned Rio Blanco mine, 27 kilometers west of Cuenca, was closed by protesters in 2019 and has not reopened.

Loffredo points out that the new leadership of Conaie [Confederation of Indigenous Nationalities] is keeping a “close watch” on developments at Loma Larga and are prepared to mobilize.

On the other hand, says Loffredo, the government insists it will stand its ground in support of the project. “Privately, they say they will send in as many soldiers and police necessary to stop protests and to allow Dundee to begin mining,” he says. “They say they will not do what [President Lenin] Moreno did at Rio Blanco and walk away. They are prepared for a fight with protesters.”

Rómulo Guzman, president of the Victoria del Portete parish where the mine concession is located, not only objects to the ministry’s assessment that Loma Larga will cause no environmental harm, but its claim that residents near the mine site have approved of the project. Based on the constitution, residents affected by a mining or oil production must be presented a “free, informed and prior consultation” before a project goes forward.

“The government’s statement that residents have been properly informed and have agreed to allow the mine is a lie,” Guzman says. At no time has a legitimate prior and informed consultation been conducted in the community of Escaleras or Victoria del Portete,” he said. “We have surveyed the residents and almost none of the 3,500 people were consulted.”

According to Guzman, there was “an attempt at a meeting” on the Day of Dead holiday, Oct. 20 2024, but only 20 people showed up. “None of the leaders in the community, including myself, were informed about it and it appears it was intentional to exclude those who are most familiar with the environmental and hydrological impact of the mine.”

Requests to the Mining Ministry by Cuenca media for proof of their consultation have not been answered.

According to Loffredo, it remains to be seen how aggressive the government will be in confronting protests. “There could be modifications and concessions made to the plan before the start of operations in September,” he said. “I don’t believe the government would use the deadly force we saw in Peru and Colombia 20 and 30 years ago in support of mines,” he said. “Hundreds of people were shot and killed in those confrontations. We will have a better idea how the conflict plays out in the coming weeks.”