Ecuador revokes DPM Metals’ Loma Larga Gold Project license over environmental concerns

Ecuador’s government revokes the environmental license for DPM Metals’ $419 million Loma Larga gold project amid local opposition over water and ecosystem concerns in Azuay province.

Ecuador’s government has revoked the environmental license granted to Canadian mining company DPM Metals for developing the Loma Larga gold project, located in an environmentally sensitive area of Azuay province, officials announced on Saturday.

The decision follows strong opposition from local communities and authorities who argue the project would threaten the Quimsacocha water reserve, a vital source of drinking and irrigation water for the region.

According to a statement from Ecuador’s Ministry of Environment and Energy, the revocation was based on technical reports submitted by Cuenca and Azuay authorities responsible for water management systems.

“The national government reaffirms its commitment to the rights of nature, the defense of water sources, and, under the precautionary principle, the protection of the health and well-being of the people of Cuenca and Azuay,” the statement said.

Local authorities celebrate decision

Cuenca Mayor Cristian Zamora, a leading voice against the project, welcomed the move, describing it as “a decades-long struggle.”

“This decision protects the water that sustains our communities and future generations,” Zamora said during a public gathering in Cuenca.

DPM’s investment plans and background

DPM Metals, which acquired Loma Larga in 2021, had projected investments of $419 million to develop the deposit, with expected annual production of about 200,000 ounces of gold during its first five years.

In August 2025, the Ecuadorean government had already suspended project activities, citing the need for a complete environmental management plan, despite granting a license a month earlier for construction.

The company did not immediately respond to requests for comment following the latest announcement.

Ecuador’s broader mining context

Although Ecuador hosts significant gold and copper deposits, the sector faces recurring legal challenges and community resistance, halting several major projects in recent years. At present, only two large-scale mining operations remain active in the country.

The Quimsacocha Reserve, spanning over 3,200 hectares, lies within the Andean páramo ecosystem—a fragile high-altitude wetland known for regulating water cycles. Its springs form one of Ecuador’s main sources of freshwater, underscoring the environmental sensitivity of the region.