(17-07-2025) The Ecuadorian government and its nascent mining industry are headed toward a legal dispute over a controversial fee announced last month.
The mining sector considers the measure to be a tax that will hinder exploration activities. The Chamber of Mines of Ecuador has already filed a request for annulment with the Constitutional Court. The government, on the other hand, maintains that the fee will benefit the sector by raising funds to combat illegal mining.
“I’m waiting for the hearing to tell my side of the story”, said minister of Energy and Mines, Inés Manzano, to the press.
The country faces a growing threat from illegal mining, which authorities link to drug trafficking. In May, an armed group massacred 11 soldiers attempting to dismantle an illegal gold mining camp in the Amazon. According to the government, the new fee would allow the regulatory agency ARCOM to raise $229 million annually to finance its operations.
Industry representatives warn that some small exploration companies would pay more in fees than they are worth, reducing the likelihood of developing the country’s abundant gold and copper deposits. “This would effectively erase Ecuador from the map of regional investment destinations”, said María Eulalia Silva, president of the Chamber of Mines.
The legal process may take up to two years, though the Chamber hopes the fee will be suspended within weeks.
Source: Stephan Kueffner, Bloomberg