What the mining industry can expect from Ecuador's presidential candidates

Ecuadorans will vote in a runoff on October 15 to decide who will govern the South American nation until May 2025, when the term of President Guillermo Lasso should have ended.

Facing impeachment, Lasso dissolved the national assembly in May and called early presidential and legislative elections. 

The runoff will be between businessman Daniel Noboa, son of banana tycoon and five-time presidential candidate Álvaro Noboa, and Luisa González, an ally of former populist president Rafael Correa (2007-17). The two emerged as the winners in the August 20 first round.

According to the latest polls, Noboa has an advantage of almost 10 points over González.

Whoever is elected president will have to face a complex economic situation and a surge in crime perpetrated by local gangs that are allies of Mexican drug cartels.

Experts believe that this year the country's fiscal deficit will be around US$5bn, and the situation could worsen next year if the elected government fulfills the mandate of a popular consultation in which Ecuadorans voted – also on August 20 – to stop oil exploitation in block 43, better known as Ishpingo-Tambococha-Tiputini (ITT).

Local analysts see mining as an option that could be promoted by the next government to boost the economy and generate jobs, especially in depressed areas, and there are at least three projects where construction could begin in the short term.

However, the mining industry faces growing opposition from indigenous communities and activists.

BNamericas looks at the main mining-related proposals of the two candidates following a debate in which they spoke about their government plans, with both emphasizing that they will combat illegal mining that is on the rise, especially in the Amazon region.

LUISA GONZÁLEZ

The candidate of the leftist Revolución Ciudadana movement led by Correa pledges to strengthen the sector but with strict environmental standards and regularizing small miners.

The State must protect mineral resources and the environment so there is orderly and regulated extraction, says the candidate.

González also mentions strengthening the regulations of the Andean Community on illegal mining, creating a mining ministry to regulate the extraction of minerals and environmental protection, and reviving the mining regulation and control agency.

The candidate also called for an audit of mining concessions to determine “if the environment is being protected and if adequate royalties are being delivered, if there is no negative impact on the communities and that there is no illegal mining," she said.

González stressed that she will combat illegal mining but that it should not be confused with artisanal mining, and said her government would make gold purchases.

She also spoke about regulating mining and carrying out mapping and a mining census to determine where there is the possibility of extraction with the minimum impact on nature.

The candidate also said that after the prior consultation mandated by the constitution for areas in which ancestral communities exist, it will be determined whether to extract the mineral resources or leave them underground.

DANIEL NOBOA

The candidate of the Acción Democrática Nacional political movement spoke of cooperation and exchange of information between nations to control illegal mining and formalize small miners.

“Zero tolerance for illegal mining, cooperation on criminal persecution between countries for the new ‘nomads’ who are illegal miners,” said the presidential candidate.

Noboa added that he plans to use satellite-tracking technology in cooperation with the governments of Colombia and Peru to detect illegal miners and strengthen borders.

He argued that Ecuador must have the strictest standards in the world regarding the environment, but also obtain resources to finance social projects.

Noboa added that new technologies will be an important ally to protect biodiversity and support the country in balancing environmental protection and economic benefits that allow the financing of social programs, mainly health and free education, as well as state programs to provide incentives to small and medium farmers, to support marginal neighborhoods and reduce crime.

“Environmental protection and also the economic development of the nation are necessary,” he said.