After more than a year of paralysis, the situation at the Loma Larga mining project, in the province of Azuay, is not expected to be reactivated anytime soon and, according to Canadian mining company Dundee Precious Metals (DPM), the suspension of activity will continue for some time. which the Ministry of Environmental Protection undertakes in order to fulfill the penalty resulting from the protection measure.

This protective action was presented by the Federation of Indigenous and Peasant Organizations of Azuaya, the Board of Drinking Water of the parishes of Victoria del Portete and Tarqui, the community of Escaleras and the Water Board of the San Gerardo Irrigation Company.

The state must conduct prior consultations for the Loma Larga mining project in Azuay

To this temporary suspension of activity, which was ordered last July due to the lack of free and informed prior consultation with the population, is added the penalty issued on August 28 by the Second Court of the Specialized Civil Chamber and the Commercial Province Court of Justice of Azuaya, which ordered the Ministry as compensation measures to present two reports: one entirely on the current state of the Quimsacocha National Recreation Area and the other dealing with the sustainability of the ecosystem and how it is prioritized in the use and exploitation of water.

In addition, carry out the prior, free and informed consultation in the community of Escaleras and the environmental consultation provided for in Article 398 of the Constitution before issuing the environmental permit for the next phase of the project.

With regard to the decision, the Ministry of Environmental Protection filed an appeal for clarification for this newspaper.

When will the reports be ready?

According to the Ministry, a full report on the current status of the Quimsacocha National Recreation Area will depend on the collection of verifiable and up-to-date information, for which aspects such as:

In this context, the State Department explained that the identification of various aspects and the analysis of various components in environmental issues requires the involvement of a multidisciplinary team in the field, which implies specific logistics for work on each of the topics. and propose and/or determine the scope of the report and applicable methodology.

Regarding the report on the sustainability of the ecosystem and the way in which the order of priority in the use and exploitation of water is guaranteed, the Ministry indicated that when the conditions determined by the Provincial Court are met, which correspond to the appointment of public officials who will be in charge of this study and subsequently stage report, the state portfolio will collaborate and coordinate to establish a plan that guides the completion of the above reports and must include the preparation and delivery time of the same. .

The Loma Larga mining project is managed by Canada’s Dundee Precious Metals. Photo: Courtesy of Dundee Precious Metals

For his part, lawyer expert in mining issues Andrés Ycaza emphasized that although it was ordered that a preliminary, free and informed consultation be carried out in the community of Escaleras, “it must be understood that Escaleras is not within the area of ​​influence of the Loma Larga project, it is outside the area of ​​influence. in a straight line, there are more than 15 kilometers between the project’s impact area and Escaleras.”

Meanwhile, Dundee Precious Metals director of communications and public relations, Carola Ríos, reiterated that the company is committed to support and cooperate in providing the information requested by authorities and will wait for the process. “It is important for us to be good neighbors. We ensure that we comply with all legal and environmental requirements set by bodies such as the Ministry of the Environment and we hope to exceed these requirements. We are interested in meeting international standards, even exceeding them.”

Canadian mining company Dundee Precious Metals will invest $419 million in the Cristal concession for the Loma Larga project in Azuay

The court process, according to Ríos, “effectively affects the original schedule of the project”, however, the company is willing to continue with the development of the project.

He said it has already dragged on for roughly more than a year, from when the process began (February 2022, a temporary suspended sentence was imposed in July) until last August when the verdict was handed down in the second instance. In this context, he pointed out that it is “difficult to calculate” the determination of how much time the state government will need to fulfill what the Azuaya court ordered.

The project remained in the final phase of research

The project was in the last phase of advanced exploration, according to the company: “We projected that it would last about another six months and after those six months, there was a phase of building the mine structure to start the exploitation of the phases, which was to be combined with the process of issuing environmental permits for the next phase, mine exploitation, which put us a few years from now to start mining.”

Internally, they will be fulfilling the plan, as they have not completed that advanced phase of research, so they will continue to do the appropriate studies. And this Monday, they will inaugurate the Technical Training Center in San Gerardo, where training for the communities has begun, so that they can receive certificates for the occupations needed for the next phase, which is the construction of the mine’s infrastructure. All these activities “which are preparatory to mine operation will continue and are very relevant, because people will not only receive training to work in the mine, but to get their certificate and then they can start their own business. employed in companies that require these skills.”

Minera plans to continue work on the Loma Larga project, despite a No on the public consultation

In 2002, they received an environmental mining permit with which they began exploration work. The environmental impact study was approved in 2004, and then its extension in 2006. The environmental management plan was approved in 2009 and updated in 2015.

The company has signed an investment agreement with the state that requires it to invest more than $419 million in the following years, Ycaza added. In addition, there is a commitment to create minimum employment, approximately 500 construction jobs, and then 300 permanent jobs during operation.