INV says new anti-mining vote request near Loma Larga

On August 3, the Prefect of Azuay submitted a request regarding mining activities in the Canton of Cueana – where Loma Larga is located – for consideration to the Constitutional Court.

This is the third such request by an individual to stop mining through a referendum, with the court having denied the previous applications.

The company said it believed that the request was politically motivated in advance of next year’s Presidential elections.

“We have been advised by legal counsel that the request is unconstitutional and, like the previous requests, does not meet the criteria and standards for approval by the Constitutional Court.

“We expect that this new request will also be rejected by the Constitutional Court,” INV said in a statement.

Meanwhile, the company reported that it was in the process of finalising the environmental impact study (EIS) for the project and that it would to submit the EIS in the near term to the Ministry of Environment and Water for review and comment.

Once submitted, the company would enter the permitting and financing phase of the project with the goal to commence the development of Loma Larga in 2021.

An updated March 2020 feasibility study contemplates a $316-million underground mine that produces 223 000 gold-equivalent ounces a year. Using a long-term gold price of $1 400/oz, the study delivered a net present value of $454-million and an internal rate of return of 28.3%.

CEO Candace MacGibbon said that the Loma Larga mine had been developed in an environmentally responsible manner, with a total site footprint of less than 65 ha.

She noted that mine site was not near any lakes or rivers and that the project would not discharge any water within the Canton of Cuenca.

The underground mine would produce concentrates which did not use cyanide for processing and about 55% of the tailings would be placed underground using the paste backfill method. The remaining tailings would be placed on a lined and filtered tailings facility and would be covered and revegetated upon closure.

“The Ecuadorian federal government remains supportive of mining to achieve its goal of sustainable and responsible development for the future. Our team is looking forward to this exciting phase of Loma Larga’s development where we engage with our many stakeholders to convey the benefits of Loma Larga and to clarify misinformation,” MacGibbon said.