Quito, Ecuador — In a major boost for its mining sector, Ecuador has officially signed a large-scale mining contract with the local subsidiary of Chinese mining giant CMOC Group for the development of the Los Cangrejos copper-gold project.
The agreement, announced by Ecuador’s Ministry of Energy and Mines on Monday, commits more than $1.7 billion in total investment, marking one of the largest foreign mining investments in the country’s history.
Massive Economic Returns for Ecuador
According to the ministry, the Los Cangrejos project is projected to generate $4.39 billion in total revenue for the Ecuadorian state through taxes, royalties, and other fiscal contributions over the life of the mine.
The deal includes strong protections for national interests, with the Ecuadorian state securing a 50% share of the project’s overall value. Additionally, Ecuador will receive $54 million in advance royalties, with $34 million paid immediately upon signing. The remaining payments are linked to key construction milestones, including the completion of the processing plant and the start of commercial mining operations.
Project Details
The Los Cangrejos mining project is located in El Oro province in southern Ecuador. It is being developed by ODIN Mining del Ecuador, the local subsidiary of China’s CMOC Group (China Molybdenum Co.), one of the world’s largest producers of copper, cobalt, and molybdenum.
The project is expected to become a significant copper and gold operation, helping Ecuador diversify its economy away from traditional oil exports and strengthen its position as an emerging mining jurisdiction in South America.
A Turning Point for Ecuador’s Mining Industry
Ecuador has long struggled to expand its mining sector despite significant mineral potential. Community opposition, legal challenges, and shifting regulations have historically delayed project development. Currently, the country only has two major large-scale mines in operation:
Fruta del Norte (gold)
Mirador (copper)
Both mines entered production in 2019.
The signing of the Los Cangrejos agreement with CMOC Group signals a renewed push by the Ecuadorian government to attract major international investment and move forward with strategic mining projects under clearer and more stable conditions.
Why This Deal Matters
This $1.7 billion investment is expected to create significant employment opportunities during both the construction and operational phases, while generating substantial long-term fiscal revenue for the state. For China’s CMOC Group, the project further expands its growing portfolio of copper assets in Latin America, a region increasingly critical for global copper supply amid rising demand for electric vehicles and renewable energy infrastructure.
The agreement comes at a time when Ecuador is actively seeking to position itself as a reliable mining investment destination in the Andes region, competing with established players like Peru and Chile.