Mining and Energy Reform Law Approved: Environmental Licensing Simplified, Galapagos Extraction Permitted

The Vote

On February 26, 2026, Ecuador's National Assembly passed the Ley Organica Reformatoria al Codigo Organico del Ambiente y la Ley de Mineria (Mining and Energy Reform Law) by a vote of 77-70 — a narrow margin reflecting deep divisions over environmental safeguards.

The law represents the Noboa administration's most significant regulatory move to accelerate mining development and energy infrastructure investment.

Key Provisions

Environmental Licensing Reform

The law's most consequential change replaces the existing environmental impact license (licencia ambiental) system with a simplified authorization process:

Aspect	Previous System	New System
Approval body	Ministry of Environment (MAATE)	Sectoral ministry (Mining or Energy)
Timeline	12-24 months	3-6 months (target)
Public consultation	Required for all categories	Required only for "high-impact" projects
EIA scope	Full environmental impact study	Simplified environmental management plan
Appeal process	Administrative + judicial	Administrative only (initial phase)

Critics argue this effectively transfers environmental oversight from the environmental ministry to ministries with a mandate to promote extraction — creating an inherent conflict of interest.

Galapagos Extraction

The law permits rock, aggregate, and construction material extraction in the Galapagos Islands for the first time, with the following conditions:

• Extraction zones must be outside the Galapagos National Park boundaries
• Only materials for local construction are permitted (no export)
• Operations require approval from the Galapagos Governing Council
• Environmental monitoring is managed by the Charles Darwin Foundation

The provision responds to a longstanding logistical challenge: construction materials for Galapagos infrastructure projects have historically been shipped from the mainland at high cost, limiting development.

Mining Investment Pipeline

The reform is designed to unlock a $10-15 billion mining investment pipeline by 2030. The two most advanced projects are:

Cascabel (Imbabura Province)

• Operator: SolGold plc (LSE/TSX-listed)
• Resource: Copper-gold porphyry
• Status: Advancing to exploitation phase
• Estimated investment: $3-4B over mine life
• Estimated reserves: 10.9M oz gold equivalent, 4.8M tonnes copper
• Timeline: Construction decision expected 2026-2027

Curipamba (Bolivar Province)

• Operator: Adventus Mining / Salazar Resources (joint venture)
• Resource: Copper-gold VMS deposit
• Status: Exploitation phase permitting underway
• Estimated investment: $250-300M initial capex
• Estimated production: 56,000 oz gold + 17,000 tonnes copper annually
• Timeline: Construction start targeted H2 2026

Opposition Response

CONAIE (Confederation of Indigenous Nationalities of Ecuador) announced protest mobilizations within hours of the vote:

• Leonidas Iza, CONAIE president, called the law "an assault on nature's rights enshrined in the constitution"
• Protests have been announced for March and April, targeting mining-adjacent communities in Azuay, Imbabura, and Zamora Chinchipe
• Indigenous communities in the Intag Valley (near Cascabel) have long opposed large-scale mining

Amazon Frontlines and international environmental organizations issued statements condemning the environmental licensing changes, arguing they violate Ecuador's Rights of Nature constitutional provisions (Articles 71-74 of the 2008 Constitution).

Constitutional Risk

The law faces potential Constitutional Court challenges:

• Ecuador's 2008 Constitution grants rights to nature (Pachamama), including the right to integral restoration
• The 2023 Yasuni referendum established a precedent for citizen-led environmental referendums
• Legal analysts estimate a 40-60% probability that key provisions are challenged within 90 days of publication

What to Watch

• Constitutional Court challenges — any filing within 90 days could suspend key provisions
• CONAIE mobilization scale — whether protests reach the disruptive levels seen in the 2022 and 2025 uprisings
• SolGold's Cascabel timeline — the exploitation-phase decision is the single largest test of the new regulatory framework
• International ESG response — mining investors increasingly screen for social license; opposition could deter some capital
• Galapagos extraction permits — the first applications will test whether the environmental safeguards are robust

Sources: Peoples Dispatch, Amazon Frontlines, Mining Reporters, Chambers and Partners