Chinese company will begin developing country’s largest gold and copper mine by the end of the year

Ecuador has signed a contract with Chinese mining company CMOC for the “development and exploitation” of the Los Cangrejos gold and copper mine in El Oro Province. Containing one of the largest known gold deposits in the world, the large open pit mine will be the largest in the country.

One of CMOC’s mining operations in the Democratic Republic of the Congo.

The 6,374-hectare concession in the Santa Rosa and Atahualpa cantons was purchased in January by CMOC from the Canadian mining company Odin Mining.

According to Ecuador’s Energy and Mining Ministry, CNOC will invest $1.7 billion to develop the mine with an expected $4.39 billion return to the government over the mine’s 26-year life span. CNOC says the mine will employ about 2,000 workers.

The proposed mine has been opposed for years by environmental, indigenous and farming groups, concerned with its large requirement of water and pollution of downstream areas. There have also been complaints of the open pit operation in an environmentally sensitive area.

The ministry claims that these concerns have been considered and met in CNOC’s environmental protection plan.

The government addressed CNOC’s concern about illegal mining activity in El Oro Province as well as the presence of organized criminal groups. According to international crime monitoring service InSight Crime, the Los Lobos gang, which has ties to Mexican drug cartels, is “deeply entrenched” in the El Oro region, controlling a majority of the informal mining activity. The province has one of the highest murder rates in Ecuador.

In the agreement, the government promised to increase law enforcement in El Oro, especially in the area near the Los Cangrejos mine. It also committed to improving roads and highways leading to the shipping port at Puerto Bolivar and to improve infrastructure at the port.

In the final agreement, the government also agreed, “if necessary, to control and protect” mining operations from political protests that may occur.

As part of the agreement, CNOC will build a thermal electric generation plant to power its mining operations.