The impact of industrial mining on the Ecuadorian economy is already being reflected in the main indicators. Not only that mining companies are already among the ten with the highest revenue and net profit, but also that the sector has begun to lead the ranking of the ten non-traditional export products of Ecuador.
Between January and September 2022, according to figures from the Central Bank, mining products generated 2,119 million dollars in exports. In Ecuador there are two industrial mines that are in the production phase: Mirador and Fruta del Norte. They mainly extract copper and gold, but also silver in smaller quantities.
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Since 2018 these products began to grow in export volume. In that year they generated 282 million dollars and were in fourth place in the ranking. Then, in 2019, they hit $326 million. By 2020, the item took a big leap and stood at 921 million dollars and was in second place on the list. Since 2021, when exports of mining products reached 2,092 million dollars, they lead the list.
Mining products are followed by canned fish with 1,049 million dollars in 2022. This sector lost first place with mining in 2021. In third place are the natural flowers this year.
Meanwhile, in fourth position are other metal manufactures. they follow him wood, leather, plastic and rubber manufacturing; extracts and vegetable oils; chemicals and drugs, made from bananaand the list is closed by fruit exports.
Exports of mining products would close to close to 2,500 million dollars, affirms María Eulalia Silva, executive president of the Ecuadorian Chamber of Mining. She adds that the future looks promising for the sector, since only two industrial mines (Mirador and Fruta del Norte) are in the production phase.
“Mining implies investment from the outset, but it is the mine construction and mine operation phases where those benefits are felt to a great extent. A dollarized economy like ours needs the influx of dollars. This is the future of the country, it is the sector of the economy that is making the most progress and that is positively influencing the reduction of poverty“, He says.
The executive affirms that only with twelve of the large-scale mining projects, including those that are already in production, at their maximum power in thirty years, there would be income of 176,000 million dollars only from exports, 44,000 million in taxes: “If, five years from now, all the projects follow their planned course, we would be generating more than 500,000 jobs. This year we are closing with 180,000 direct and indirect jobs”.
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He adds that with “responsible and standardized” mining, Ecuador can have gold and water, copper and environmental conservation: “Mining can even be a good political business. Not for the personal agendas of certain local leaders, but for responsible politicians who are interested in generating employment in their jurisdiction, promoting sustained development and avoiding social decomposition”.
However, large-scale mining has had strong opponents in the country, especially certain environmental organizations. The leaders of these collectives have brought to the fore the idea of “water or gold”, that is, an antagonistic relationship.
Gustavo Manrique, Minister of the Environment, Water and Ecological Transition, affirms that the Government is working on “post-oil Ecuador” and to achieve this, it is not possible to “lower income” but rather raise it, especially with those that come from the conservation side , of regenerative tourism, of genetic material that is in the Amazon.
“That in terms of new income, but we also have to accept that minerals are part of the resource to save the planet whether we like it or not. How do we change diesel cars for electric ones if we don’t have the minerals for the new engine? Or how do I stop pumping oil to generate energy, light if I don’t have the cilice for the solar panel? We must accept that minerals are necessary in this transition”, he points out.
Although canned fish products lost first place, this does not mean that there is something wrong in this sector, says Carlos Cruz, an economist. He indicates that industrial fishermen have remained despite factors such as the pandemic or natural oceanographic phenomena.
“Mining is a sector with great prospects as long as there are no major obstacles. Fishermen have done very well, although the European Union’s decision to buy tuna from China is likely to affect demand for canned goods as well. I believe that this impact will be reflected in the figures for 2023 or the end of 2022“, He says.
The information available in Ecuador is that this Asian nation sold to European nations in the first quarter of this year close to 74,000 metric tons of tuna.
According to Mónica Maldonado, executive director of the Ecuadorian Chamber of Industrialists and Tuna Processors (Ceipa), there are already Ecuadorian tuna producers that have sent employees on vacation due to the lack of orders from the European continent. (YO)
Source: Eluniverso
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