Ecuador has signed a $1.7 billion mining agreement with China’s CMOC Group for the Los Cangrejos gold-copper project in El Oro province. This landmark deal could help establish the country’s third large-scale mine and revive a sector long hampered by legal disputes, regulatory uncertainty and community resistance.
The contract, signed with CMOC’s local subsidiary ODIN Mining del Ecuador, gives the Ecuadorian state a 50% share of the project’s value and is expected to generate about $4.39 billion in revenue through taxes, royalties and other payments over the life of the mine. Quito will also receive $54 million in advance royalties, including $34 million upon signing, with the remaining amount tied to construction milestones.
Los Cangrejos, located about 450 km southwest of Quito in El Oro province, is considered one of Ecuador’s largest gold deposits and among its most significant undeveloped mining assets. According to a 2023 pre-feasibility study, the project could become a 26-year open-pit mine producing on average 371,000 oz. of gold and 41 million lb. of copper annually.
The same study outlined indicated resources of 1.08 billion tonnes grading 0.55 g/t gold and 0.11% copper, containing 16.8 million oz. of gold and about 2.6 billion lb. of copper. Inferred resources add 179 million tonnes grading 0.41 gram gold and 0.09% copper for 2.2 million oz. of gold and 355 million lb. of copper.
CMOC acquired the asset through its 2025 $420 million all-cash takeover of Canada’s Lumina Gold. While the project remains in the design-and-planning phase, the new agreement is expected to accelerate its development.
The Los Cangrejos deal comes as President Daniel Noboa pushes to rebuild investor confidence in Ecuador’s mining sector. Despite strong geological potential, Ecuador currently has only two large-scale mines in operation: Lundin Gold’s Fruta del Norte and the Chinese-backed Mirador copper mine, both of which entered production in 2019. For years, growth in the sector has been slowed by community opposition, litigation and changing regulations. In response, Noboa’s government has made mining a pillar of its economic strategy. A new mining law approved in late February aims to address bottlenecks by overhauling environmental permitting, introducing a broader “environmental authorization” system and streamlining approvals while maintaining state oversight.
The framework also revises royalty flows, setting rates between 3% and 8% of sales and directing most of the proceeds to local governments to ease social tensions around mining projects. Noboa’s administration has also pledged to strengthen security in mineral-rich areas and crack down on illegal mining.
The agreement also underscores China’s growing influence in Ecuador’s emerging mining industry. Chinese companies now control many of the country’s most advanced copper and gold projects, giving them a dominant role in Ecuador’s future mine supply.
In March, Jiangxi Copper completed its takeover of SolGold, which is advancing the Cascabel copper-gold project in northern Ecuador. Another contract is expected for the expansion of Mirador, which Ecuacorriente, a subsidiary of Tongling Nonferrous Metals Group and China Railway Construction Corp, operates.
This expanding Chinese presence is notable given Noboa’s close security ties to the United States and to US President Donald Trump. Even so, the Ecuadorian government has continued to deepen trade and investment ties with Beijing. Noboa is expected to make his second state visit to China in August and has said Ecuador must maintain diversified relationships with major partners. Los Cangrejos is part of a wider group of projects that could help Ecuador move beyond its current two-mine base. Solaris Resources is advancing its Warintza copper project in Morona Santiago province, while Silvercorp Metals is moving ahead with construction at Curipamba’s El Domo deposit.
Exploration is also continuing at Sunstone Metals’ Bramaderos and El Palmar projects, while Lundin Gold is pursuing expansion work at Fruta del Norte. Together, these assets form the core of Ecuador’s effort to build a broader and more diversified mining sector.
The CMOC agreement represents more than a single project approval. It is an early test of whether Ecuador’s new mining reforms can unlock large-scale investment while balancing state revenue, local benefits and political stability.
It also highlights the geopolitical balancing act facing Quito. As Ecuador seeks capital, jobs and export growth, Los Cangrejos shows that Chinese investment is likely to remain central to the country’s mining ambitions, even as the Noboa administration maintains close ties with Washington.