Ecuador, SolGold has reached an agreement to launch nearly $5 billion in mining projects

The Ministry of Energy and Mines of Ecuador announced in a statement on Thursday that the Ecuadorian government has ended negotiations with Mining in Australia mining company SolGold to develop a large mine, which will require an investment of 4.9 billion dollars in the whole life cycle of the project.

The statement added that the underground Cascabel mine is expected to generate $35 billion in exports and attract approximately $8 billion in royalties and taxes to the national treasury during its operation period.

SolGold stated that the reserve estimate is based on the initial 26 year operating life of the project and an annual production capacity of 25 million metric tons of a processing plant.

Kaskabel is located in Imbabura Province Province in the north of Andean countries. The Ministry has previously said that it may become the world's largest silver mine, the third largest gold mine and the sixth largest copper mine.

Although Ecuador has abundant mineral reserves, it lags far behind the South American mining giants Peru and Chile, mainly due to resistance from indigenous communities and court rulings that hinder mining activities.

The department stated that the agreement was signed on Wednesday, and according to the department's statement, SolGold promised to invest $4.882 billion over the lifespan of Cascabel.

Minister Fernando Santos stated that the agreement with SolGold will "make Ecuador an important copper producing and exporting country" and stated that the project has obtained all necessary environmental and water permits.

According to company data, Cascabel's initial mineral reserves are estimated to be 3.3 million metric tons of copper, 9.4 million ounces of gold, and 30 million ounces of silver.

The department added that the mine is expected to start construction in 2025 and operation in 2030.

Official data shows that Ecuador exported approximately $2.8 billion in mining output last year, an increase of nearly one-third compared to the previous year. The country's Fruta del Norte and Mirador mines, as well as small-scale mining activities, are listed as the main contributors.