In Ecuador, mining is a political hot potato which no one seems willing to take hold of. There is broad consensus that mining would do wonders for the economy. But efforts to deliver regulatory clarity face intense political opposition and legal inconsistency. As such, investors seek Ecuador mining risk intelligence to guide their due diligence efforts.
In Ecuador, mining opposition is built upon many pillars:
- A widespread environment-first ideology that the mining sector has failed to credibly embrace in its own PR efforts
- The poor conduct of a few large miners that confirmed the fears of opponents
- Inadequate royalty income for local communities
- Widespread illegal and informal miners (especially in gold), who help fund local opposition to legitimize their own opposition to industrial mining
Before investors back a project, they turn to AMI to assess local community risk by surveying local citizens as well as undertaking discreet interviews with key influencers in local communities – from indigenous groups to local politicians, to NGOs, religious leaders, community leaders, union leaders, and even illegal miners and organized criminal groups. We have reflected nearly three decades of experience and 200+ consulting projects in Latin America in our 2022 Latin America Mining Risk Index to provide useful guidance to mining investors as to where they should focus their pre-investment risk due diligence research. Please click below to learn more about this unique report, the first to quantify mining risk in Latin America, and learn more about how it can help you in evaluating pre-investment risk to mining in Ecuador and Latin America.