Ecuador Enters a New Mining Phase: 2026 Reforms and Investment Outlook

Meythaler & Zambrano Abogados
1 day ago
6 min read

Although Ecuador has historically faced regulatory, institutional, and security challenges that have affected its perception as a mining investment destination, the sector’s recent evolution shows that the country has been able to generate growth, foreign exchange, and employment through mining activity. In recent years, mining has become a significant source of revenue for the Ecuadorian economy, driven by the launch of large-scale mining projects, increased exports, and sustained interest in new developments.

Against this backdrop, Ecuador’s 2026 reform law on strategic mining and energy sectors, which entered into force on March 2, 2026, introduced significant changes to the country’s mining legal framework. The incorporation of integrated mining clusters, state protection mechanisms in strategic areas, new financial controls in mineral commercialization, adjustments to the stages of mining activity, and measures to formalize artisanal mining reflect an effort to strengthen state oversight, operational security, and sector organization.

From an investment perspective, these reforms not only modify operational rules but also impact how projects can be structured, executed, and financed. In particular, the law introduces measures aimed at improving institutional coordination, reinforcing security in strategic areas, and facilitating enabling infrastructure for mining operations, in a context where regulatory predictability and operational feasibility are key factors in decision-making.

The recent evolution of the sector, combined with the 2026 reforms, points to a more nuanced landscape—one in which risks remain, but where concrete opportunities also exist for those able to properly structure their projects and operate within the new regulatory framework. From this perspective, this analysis examines the reforms introduced in 2026 and their impact on mining activity in Ecuador, with the goal of identifying the most relevant legal and regulatory implications for companies and investors interested in developing mining projects in the country.

Key Changes Introduced by the 2026 Mining Reform

Ecuador’s 2026 mining reform introduces structural changes that directly affect how the sector is organized, how government oversight is exercised, and the conditions under which mining projects may be developed. From an investment standpoint, these changes matter because they affect key issues such as operational security, enabling infrastructure, financial traceability, project planning, and the formalization of smaller-scale mining activities.

The most significant changes include:

the creation of integrated mining clusters, intended to centralize shared infrastructure and support services;
state protection for strategic mining areas through enhanced security measures backed by the Armed Forces;
new financial control and transparency requirements, particularly in mineral trading;
a redefinition of the stages of mining activity, with a clearer framework for the exploration phase and the transition to subsequent stages; and
new measures aimed at formalizing artisanal mining, including updated rules on permit duration, reporting obligations, and regulatory transition.

Taken together, these changes create a new operating framework for the sector, with direct implications for the planning, execution, and risk assessment of mining activities, as well as for how investors evaluate the operational and regulatory feasibility of their projects.

Key Aspects of the 2026 Mining Reform

Financial controls in mineral trading

Operators involved in mineral trading must register with Ecuador’s Financial and Economic Analysis Unit (UAFE) in accordance with the anti-money laundering rules applicable to the mining sector.

Integrated Mining Clusters

The reform creates Integrated Mining Clusters as designated areas intended to concentrate strategic infrastructure for mining activities, including power interconnection, fuel supply, road infrastructure, logistics, and security.

Strategic Security Protection Areas for Mining

The reform introduces a new category of Strategic Security Protection Areas for Mining, allowing the Armed Forces to intervene to prevent illegal mining, protect strategic mining infrastructure, and address threats posed by criminal groups.

Stages of a mining project

Mining concessions are now structured around two main phases: exploration, which may last up to 15 years, and exploitation. The reform also allows for the extraction of primary minerals, secondary minerals, and economically recoverable associated minerals.

Declaration regarding strategic infrastructure

Concession holders must submit a notarized sworn statement confirming that mining activities will not affect strategic public infrastructure, military facilities, telecommunications networks, oil or power infrastructure, or assets that form part of the country’s natural or cultural heritage.

Formalization of artisanal mining

Artisanal mining permits will have a maximum term of 10 years and may not be renewed. This measure is intended to promote formalization and transition toward regulated small-scale mining schemes.

Environmental management

The environmental licensing requirement for mining projects remains in place, and the use of quarry materials in the Galápagos is regulated under circular economy principles.

Current Landscape and Economic Potential

In recent years, the mining sector has become one of the main sources of foreign exchange for Ecuador’s economy. Recent figures reflect both the sector’s current importance and its medium-term growth potential.

Growth and Economic Impact

Over the past decade, Ecuador’s mining sector has experienced rapid growth as a source of foreign exchange. Mining exports increased from just USD 282 million in 2018 to a record USD 3.324 billion in 2023 (based on official Central Bank data), accounting for approximately 63% of non-oil exports and around 9% of total exports—making it the country’s fourth-largest export sector after oil, bananas, and shrimp.

This growth is largely explained by the start of operations at the Fruta del Norte (gold) and Mirador (copper) mines in 2019, as well as strong international prices for gold and copper (for example, gold exceeded USD 2,300 per ounce in 2023). In 2022–2023, the mining sector contributed approximately USD 762.7 million in taxes and generated 96,823 jobs (including 24,206 direct jobs).

According to data from Ecuador’s Central Bank, mining exports reached approximately USD 3.075 billion in 2024, confirming the sector’s continued importance within the country’s export structure, despite a slight contraction compared to 2023. In terms of fiscal contribution, the sector generated approximately USD 1.002 billion in tax revenue, representing around 5% of total government revenues, which highlights its growing role in public finances.

Current Situation

In the first half of 2025, Ecuador’s mining sector continued to strengthen its position as a key source of foreign exchange. According to the Central Bank, mining exports totaled USD 836 million in Q1 2025 (down 10.7% from Q1 2024) and USD 1.037 billion in Q2 2025 (up 16.9% from Q2 2024).

These figures primarily reflect gold and copper exports from large-scale mining operations. Mining investment reached USD 98 million in Q1 2025 and USD 190 million in Q2 2025, of which USD 49 million and USD 96 million came from the Mirador mine, and USD 24 million and USD 51 million from Fruta del Norte. Employment remained stable, with 46,096 jobs in Q1 2025 (11,524 direct jobs) and 45,946 in Q2 2025 (11,720 direct jobs).

Growth Outlook

Ecuador has a strong pipeline of mining projects at various stages, with the potential to attract new investment and increase production of gold, copper, silver, and zinc. The presence of advanced projects, along with sustained interest in moving them forward, underscores the country’s role in the regional mining sector and points to meaningful room for growth, despite the risks that remain.

At the same time, unlocking that growth will depend on addressing several challenges that remain critical to project viability, including community consultation, compliance with strict environmental standards, effective land-use management, and the efficient use of revenues generated by mining activity.

Key Mining Projects in the Pipeline

It is estimated that Ecuador’s mining project pipeline represents more than USD 14 billion in potential investment. The most significant projects include:

Cascabel (Imbabura): copper and gold — SolGold
Warintza (Morona Santiago): copper — Solaris Resources
Loma Larga (Azuay): gold and silver — Dundee Precious Metals
Cangrejos (El Oro): gold — Lumina Gold
La Plata (Cotopaxi): copper, gold, and silver — Atico Mining
El Domo (Curipamba) (Bolívar): copper, gold, and zinc — Adventus Mining / Salazar Resources

Final Remarks

The reforms adopted in 2026 reflect a public policy effort to strengthen the mining sector as one of the drivers of Ecuador’s economic growth. While their effectiveness will ultimately depend on how they are implemented in practice, these measures show an effort to provide a more orderly, secure, and predictable environment for investment. In this context, Ecuador is positioning itself as a relevant destination for international mining investment, supported by its geological potential, the progress of strategic projects, and a regulatory framework intended to facilitate mining operations under stronger oversight and security conditions.

The success of mining projects in Ecuador depends not only on the availability of mineral resources, but also on a company’s ability to operate within a complex regulatory, institutional, and operational environment. Challenges relating to permits, regulatory compliance, dealings with government authorities, legal certainty, and contingency management can directly affect the viability of an investment. In this context, specialized legal counsel is essential to structuring projects, mitigating risks, and giving investors greater confidence.

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