In a regulatory reversal, Ecuador’s government has annulled the environmental permit that once authorized a Canadian company to proceed with its gold extraction plans. The mine in question, Loma Larga, sits within the Azuay province, overlapping with the Quimsacocha water reserve, a delicate ecosystem supplying drinking and irrigation water to local populations. Government officials cited technical assessments from regional authorities as the basis for their decision, highlighting risks to water security and public health.

Opposition to the project had gained momentum among residents and municipal leaders, who contended that mining operations would worsen scarcity, contaminate sources, and disrupt ecological balance. In Cuenca, the mayor publicly expressed gratitude for the cancellation, characterizing it as vindication after years of resistance. Although the mining firm obtained environmental clearance earlier in the year, its activities had already been suspended earlier by the state over failure to submit a full environmental management plan.

DPM Metals, the Canadian firm behind the operation, acquired the project in 2021 and projected an investment of roughly $419 million, with forecasts of about 200,000 ounces of gold output annually during the initial five-year span. Despite Ecuador’s reserves in gold and copper, recent judicial rulings and community pressure have pressured government agencies to curtail large-scale mining authorizations. At present, only two mining firms remain active in the country.

The Quimsacocha reserve encompasses more than 3,200 hectares of Andean “páramo,” a fragile highland moorland. Its springs form a crucial element of Ecuador’s hydrological network. The decision by the national government underscores growing tension between resource development and environmental protection, and suggests that the precautionary principle has assumed new force in national policy.