Ecuador’s New Copper Mining Fee Could Cost Producers Up to $15mn Annually

Ecuador copper

High Costs Threaten Early-Stage Projects

Ecuador has introduced a new “supervision and control fee” for copper mining concessions, potentially costing major producers up to $15mn per year. The mining regulator Arcom will charge $118–$470 per hectare, depending on the project phase, with the aim of funding efforts to combat illegal mining.

Industry leaders warn that the measure could threaten projects that have yet to begin production. Maria Eulalia Silva, president of Ecuador’s mining chamber, called the fee “unfeasible” for early-stage projects without revenue. She cautioned that companies might return concessions unless the government revises the policy.

Major Projects Face Heavy Burden

Arcom expects to raise about $230mn annually from the fee. Projects in initial exploration will pay $118/ha, advanced exploration $353/ha, and production $470/ha. Medium-scale projects face fees of $94–$235/ha.

Ecsa, operator of the Panantza-San Carlos project, could pay $15mn annually for 38,548ha in initial exploration. Solgold’s Cascabel mine, now in production, faces a $5mn yearly fee for 5,000ha. Lumina’s Cangrejos project may pay $4mn per year, while Solaris’ Warintza project could owe $6mn annually.

The new fee coincides with Ecuador’s 2% year-on-year increase in Q1 2025 copper concentrate exports, totaling 150,672t. However, the higher costs may deter investment, especially in projects still years from production.

The Metalnomist Commentary

Ecuador’s fee underscores the delicate balance between securing public revenue and maintaining mining sector competitiveness. If unadjusted, it could slow project development, delay exports, and risk capital flight to more mining-friendly jurisdictions.