One mining company is the company that records the highest net profit in Ecuador in 2022, and the other that is in full operation is in seventh place, and thus – they emphasize in the sector – both workers and local development win. For example, in Zamora Chinchipe, poverty has been reduced and it is now one of the top contributing provinces taxes on land, after the presence of industrial mines and the production chain they create.

After companies in the country submitted their balance sheets for 2022 to the Supervisory Board of Companies, ranking and among the ten companies that recorded the highest net profit, five are from the mining and oil sector: Ecuacorriente, Shaya Ecuador, Andes Petroleum Ecuador, Consorcio Shushufindi and Aurelian Ecuador. All of this segment reports $1.524 million in net profit in 2022. While all companies operating in the country add $7.002 million in profit.

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The Executive President of the Chamber of Mines of Ecuador, María Eulalia Silva, assures that mining represents an economic, social, environmental and industrial development opportunity for the country. Citing figures from the Central Bank of Ecuador, it shows that 2022 exports of mining products closed at $2.775 million, exceeding 104% of the expected target for that year.

It is important to note that in 2022, referring to the data of the Tax Administration (SRI), on the presence of industrial mines and the production chain they create, Zamora Chinchipe – which historically was one of the provinces where the SRI collected the least – is now the fourth province that contributes with more taxes to the country with about 414 million dollars.

Mining exports would triple by 2030, reaching $9.191 billion, under the government’s optimistic scenario

And it is the province that has succeeded the most in reducing poverty in 2021, according to the latest available data from the National Institute of Statistics and Census (INEC). “Poverty in that province has decreased by 13 percentage points if you compare 2019 to 2021 and has reached 30 percent. Namely, before, 43 out of every 100 inhabitants were poor, and at the end of 2021, this number increased to 30 out of 100”.

In this sense, it indicates that mining is very transcendental for the country and its stability and this is reflected in the profit figures. “With only two mines in production, the companies that manage them are the ones that have achieved the highest net profit according to the General Supervision of Companies. It is important to mention that in mining – according to Ecuadorian regulations – 3% of the 15% profit is delivered to the employees, and the remaining 12% to the state, which later delivers it to the community,” he explains.

Mining exports to Ecuador surpassed banana and plantain exports in value in February 2023.

For the president of the Ecuadorian-Chilean Chamber of Mines, Giovanny Andrade, there are “very good royalties” from mining, but he believes you can have about 200%, 300% or 400% more product from mining. The sector is developing in the country, but “in very short steps”.

For the representative of the union, despite what is generated within the sector “it is very little” and adds that “mining gives 80,000 million dollars, 90,000 million dollars in other countries. We have the same items for about seven years, we should have 80, 90 companies that they extract and can give us a net profit of around 80,000 million dollars”, he points out.

Andrade believes that the mining sector could develop expansively so that Ecuador is no longer economically dependent on oil but on mining. “Unfortunately, the governments that passed in Ecuador did not make an accurate decision on this issue. The mining sector needs a change that is different from what they are given now, we need a change of progress, not a change of stability in the same numbers every year”.

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Silva indicates that by 2023, exports are expected to remain at similar levels, although there could be some sort of increase. “At this moment it is important that the projects that have to go into construction progress because that is where the largest amount of foreign investment and the resulting export earnings are.”

The government believes that mining exports from Ecuador would reach 9.191 million dollars in 2030. Likewise, by that same year, it could create around 825,000 jobs and invest 18,000 million dollars.

Silva, referring to data from the Ministry of Energy and Mining, indicates that by the third quarter of 2022, the sector had 46,298 direct and 138,894 indirect jobs.

These are the 10 companies with the highest net profit: