Ecuador signed an agreement with Chinese mining giant CMOC Group Limited to develop the Cangrejos project. File Photo by Aaron Josefczyk/UPI | License Photo
April 29 (UPI) -- Ecuador signed an agreement with Chinese mining giant CMOC Group Limited to develop the Cangrejos project, set to become the country's first large-scale open-pit gold mine and its biggest gold and copper operation.
Through its subsidiary Odin Mining Ecuador, the Chinese company will invest more than $1.7 billion with plans to begin construction before the end of 2027.
The deal follows CMOC's acquisition earlier this year of Canadian mining company Lumina Gold. Odin Mining Ecuador will now oversee construction and operation of the deposit, which is estimated to contain 11.6 million ounces of gold, 1.4 billion pounds of copper and 14.4 million ounces of silver.
In a statement released Tuesday, Ecuador's Ministry of Environment and Energy said the Ecuadorian government will retain a 50% share of the project's value, generating an estimated $4.386 billion in state revenue over the mine's projected 26-year lifespan.
