Government accepts Loma Larga environmental reports, says it will suspend the mining license

The government said Thursday it is beginning the process of revoking the mining license for the Loma Larga mining project. In a statement, the presidential press office said the government has accepted the environmental reports presented by Cuenca Mayor Cristian Zamora and Azuay Prefect Cristóbal Lloret claiming the project would pollute water sources on the Quimsacocha páramo.

A lake on the Quimsacocha páramo.

“We accept the documentation from the prefecture of Azuay and the municipality of Cuenca and have initiated the paperwork to suspend the project,” the statement said. “As we have said before, the priority of this government is to protect the health of citizens, protect water resources and ensure respect for the competencies at local governments.”

The statement added that the city and prefecture would be responsible for defending their studies if mining company Dundee Precious Metals sues for damages in international arbitration court.

Former Mining Minister Jasper Rodas said the government had no choice but to suspend Loma Larga. “The evidence in the studies is overwhelming that the mine would pollute the water,” he said. “The government was foolish to ignore the earlier studies and accept the Dundee report. And, no matter what the science showed, it was foolish to try to open a mine so close to a large city, especially Cuenca, which is known for environmental activism.”

Quito mining consultant Carlos Villamar says there was a reason the Loma Larga project was delayed for years. “Every government for the last 25 years understood the political risks as well as the environmental issues and that’s why nothing happened,” he said. “Yes, it is true the region around Cuenca contains one of the world’s richest gold deposits but, because of the large population, there is no alternative but to leave it in the ground. Sometimes you need to put the quality of life above the profits.”

He added: “If the government didn’t end it, the people of Cuenca would never let it go forward.”

Villamar discounts the government claim that Cuenca and Azuay Province would be liable for damages suffered by Dundee. “By law and common sense, the liability is entirely with the national government since they are the ones who issued the permit. They are also the ones who ignored the earlier environmental studies which they now accept.”