Constitutional court must decide 'whether Ecuador will be an important mining jurisdiction'

Three new lawsuits against an Ecuador presidential decree that regulates environmental consultations have raised concern in the mining sector.

The new suits, filed in recent days by indigenous groups, community members, human rights defenders and an environmental organization, ask the constitutional court to declare decree 754 unconstitutional. They join the lawsuit presented in June by Conaie, the largest indigenous organization in the country.

The four lawsuits show there is abuse of the legal system to obstruct economic activities in general and the mining industry in particular, mining law expert Andrés Ycaza told BNamericas.

“We must call on the constitutional court so that it is not used. There is an appropriation [of mining activity], using constitutional justice. It is evident that these groups, regardless of the court's ruling, will continue to file legal action to keep the sector paralyzed,” added Ycaza of law firm Flor, Bustamante, Pizarro & Hurtado.

On September 18, the court heard several amici curiae (friends of the court) present arguments for and against the decree. 

The hearing generated concern because the court only called on parties in the mining sector, despite the fact that the suspension of the decree would affect all productive sectors that require consultation to obtain environmental licenses.

The judges must decide in the coming days whether to consider the new suits.

Representatives of the mining sector said if the judges agree to hear the cases, it will make the situation even more complicated for the mining industry. The US$250mn Curipamba copper and gold project and the US$176mn La Plata polymetallic project are already halted as they require the completion of the environmental consultation process to obtain the license that allows them to begin construction.

The plaintiffs also requested that all the cases be consolidated, which would further lengthen the process for the court to issue a ruling.

At the end of November or beginning of December, an interim government will take office, which will be elected in the October 15 runoff to end the term of Guillermo Lasso, who in May dissolved the national assembly and called early presidential and legislative elections.

Local analysts believe that until May 2025, when a new government will take office for a four-year period, the mining sector will hardly see any new investments or the development of new projects, due to the uncertainty.

"It is in the hands of the constitutional court to decide whether Ecuador will be an important mining jurisdiction. There are a series of consolidated projects, sufficiently attractive for investors and in addition, a new generation of projects is emerging, such as Bramaderos or El Palmar, as well as smaller projects that would make a great contribution to the economy, but they must deal with the series of legal problems and opposition to the activity," said Ycaza.