Chinese consortium CRCC-Tongguan, through its subsidiary EcuaCorriente S.A. (ECSA), is forging ahead with its planned expansion of the Mirador copper mine, one of Ecuador’s largest mining projects. Phase II, which will see the expansion of the northern section of the mining project, dubbed Mirador Norte, is expected to start sometime in 2025, despite environmental concerns and opposition from indigenous communities.
CRCC-Tongguan, made up of state-owned enterprise (SOE) China Railway Construction Corporation and Tongling Nonferrous Metals Group, which both have faced accusations related to environmental issues, corruption, and human rights violations, took control of the Mirador (copper) and San Carlos Panantza (gold) projects after acquiring the Canadian mining company Corriente Resources in 2010.
The Mirador mine is in the parishes of Tundayme, Quimi, and El Guismi, in the province of Zamora Chinchipe, 1,000 meters above sea level in the Cordillera del Cóndor. The area, considered of high ecological value and renowned for its exceptional biodiversity, is home to at least 16 distinct ecosystems and a wide array of plant and animal species.
ECSA has been advancing its negotiations with the Ecuadorian government for an addendum that would allow for an expansion of the project’s extraction capacity. Phase II plans to process up to 140,000 tons of copper per day by 2028, with a $650 million investment, according to Latin American business platform BNamericas.
Progress is conditional on the fulfillment of a contractual clause requiring the construction of a hydroelectric plant, which would allow the mine to be self-sufficient and no longer affect the country’s electricity supply. The planned investment for the plant, however, no longer exists, EcuaCorriente’s Legal Vice President Mauricio Núñez told Ecuadorian news site Primicias in August 2024.
The extraction of minerals such as lithium, copper, and niobium is in line with China’s industrial and military objectives. The Chinese Communist Party (CCP) has been extracting a greater share of strategic minerals in Latin America and the Caribbean, seeking to strengthen its presence in critical sectors.
Environmental and social risks
The expansion of the Mirador mine raises significant concerns. Among those and one of the most sensitive aspects is the proposed raising of the Tundayme tailings dam to 320 meters, which would double the size of the current dam and make it the highest in the world, according to E-Tech International, a U.S.-based environmental technical nonprofit that has been assessing the ECSA Mirador mine since 2011. The area prone to earthquakes, also has high precipitation and is close to water sources, which all increase the likelihood of a tailings dam failure, E-Tech said in a March 2024 report.
“Both deposits [main Mirador mine and proposed Mirador Norte] have high acid drainage potential, which also increases the environmental, ecological, and human health consequences of a potential tailings dam failure. At least seven Shuar communities are located along the lower Rio Quimi and downstream from the confluence with the Rio Zamora and many dozens more settlements are present; Shuar literally live on the river,” the report indicates. “No plan currently exists for an emergency evacuation in the event of a tailings dam or other mine failure that could severely affect downstream communities.”
“The risk of the tailings fracturing and spilling their toxicity into the river has set off alarm bells. A simulation warns that the contaminants could reach Peru and spread throughout the Amazon basin,” Jorge Villa, a specialist in geographic information systems and remote sensors at the Ecuadorian nonprofit EcoCiencia, told Diálogo. The threat to the environment is putting indigenous communities on edge, as their livelihoods depend on freshwater ecosystems, since their diet is mainly based on fish.
“The expansion continues to move forward,” Villa said. “The risk that these tailings are not stable enough and could cause a leak or spill is increasingly evident and worrisome.”
Another issue characteristic of Chinese projects is the lack of transparency, E-Tech notes in its report. “The transparency of information on the technical details of the Mirador Mine has been very poor. Between 2021 and 2023, despite multiple requests from the National Assembly and E-Tech, E-Tech received only limited information. Meanwhile, with little public discussion, the mine received permits for more than doubling production.”
Indigenous resistance
Local communities have expressed opposition since the project began. Between 2014 and 2016, several families were forcibly evicted, while a Shuar leader and two other Shuar men were killed, their death reportedly linked to their opposition to the project, according to international nongovernmental organization Rainforest Rescue. More than half of the Shuar ancestral territory is currently under concession for mining activities.
“These communities are trying to raise their voices, but they continue to be repressed and unheard. Free, prior, and informed consultation should not be seen only as a legal requirement, but as an essential basis for the proper development of any activity. The Amazonian indigenous peoples have always lived in this territory and possess invaluable ancestral knowledge that could enrich any project proposed there,” Villa said.
Production and destination
The Mirador project covers more than 6,600 hectares and contains estimated reserves of 3.2 million tons of copper, 3.4 million ounces of gold, and 27.1 million ounces of silver, Reuters reported. ECSA projects a 133 percent increase in production by 2028, according to Ecuadorian daily Expreso.
Mirador produces copper sheets used in the manufacture of lithium-ion batteries, a key input for Chinese companies such as CATL, BYD, and Gotion High Tech. According to Rainforest Rescue, frequent changes to the project and a lack of transparency make it difficult to assess its impacts in a timely manner.
Geopolitical and military significance
The Belt and Road Initiative has facilitated China’s access to minerals in Latin America through investments in infrastructure and opaque trade agreements. The extraction of strategic minerals in the region also contributes to strengthening the CCP by facilitating the development of technologies such as artificial intelligence, high-precision radars, and autonomous systems, in line with its military modernization objectives.
“Both Chinese companies and other sectors have intensified their presence in Ecuador and the region, attracted by the abundance of strategic resources. This interest has grown rapidly and noticeably,” Villa said. “The scientific community can see its increasingly aggressive and impactful advance.”
Transparency and civil control
China’s advance in Latin America underscores the importance of maintaining continuous vigilance over extractive projects and acquisitions promoted under total Chinese control, Argentine news site Infobae reported.
“The government and regulatory bodies must ensure total transparency in informing civil society about ongoing projects, their progress, shortcomings, and the oversight mechanisms in place. It is essential that citizens know what is happening and that information barriers are removed, which prevent prior knowledge of these activities in Mirador,” Villa concluded.
For its part, E-Tech made the following statement in its report: “It is long past time to openly audit the mine and determine the best steps moving forward to protect lives and the environment.”
