ESG

INV gains after mining referendum denied in Ecuador

Court denies applications

Staff reporter

This article is 5 years old. Images might not display.

In a statement last week, the court said it would carry out control on a "case by case" basis, regarding the origin of popular consultations on mining, analysing whether these violated rights or implied reforms to the constitution, and if they met the requirements of loyalty, clarity and transparency required by law to guarantee the rights of voters.

It said the applications by the prefect of the Azuay province and the mayor of Camilo Ponce Enriquez canton had not met the required criteria to proceed.

INV told Mining Journal at last week's Precious Metals Summit in Beaver Creek it hoped to raise C$10 million after the Azuay and Camilo Ponce Enriquez referenda were resolved, to provide the funds to get through permitting to a construction decision. 

"The company will commence its financing and permitting efforts within the laws and regulations of Ecuador with the support from our many stakeholders, the government and the mining industry," CEO Candace MacGibbon said yesterday.

"Loma Larga is one of five strategic mining projects identified by the ministry of energy and non-renewable resources."

Unsuccessful applicant, Azuay prefect Yaku Pérez Guartambel, has vowed to continue to fight for a popular consultation on mining.

INV has opted to relocate its proposed Loma Larga plant outside the Girón canton after residents there voted against allowing mining activities in a March referendum.

A 2018 feasibility study for Loma Larga outlined initial capex of US$279 million, an after-tax NPV (5% discount) of $356 million and IRR of 24.7%.

It envisaged a 12-year mine, producing an average annual 206,000 ounces of gold.

INV shares gained 7% yesterday to C45c but remain down 28.6% year-to-date.

It is capitalised at $43.8 million (US$32.8 million).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.