The state company Empresa Nacional Minera (Enami) did not attend the mediation hearing convened in Quito before the State Attorney General's Office.
The process involves Hanrine Exploration & Mining, a subsidiary of Australia's Hancock Prospecting.
According to the company, Enami did not provide justification for its absence, which forced the hearing to be rescheduled for March 26, 2026.
A conflict that puts USD 120 million at stake
The dispute revolves around the Llurimagua mining project, located in the province of Imbabura, which contemplates an investment of close
to USD 120 million.
In April 2024, both parties had signed an agreement to explore copper in an area of more than 28,000 hectares.
The project is considered strategic by the government of Ecuador, which seeks to reactivate mining activity as an economic engine.
Cross-accusations of breaches
Hanrine maintains that Enami committed contractual breaches that would have
prevented progress with the exploration program.
The company also had to pay USD 1.2 million to the state company, but it conditioned that payment on the fulfillment of the commitments made by its counterpart.
The Australian mining company warned that the conflict could affect its operational continuity in the country.
A project under social and environmental pressure
Development in Llurimagua also faces resistance from local communities, who express concern about the environmental impact on the biodiversity of the area
.
This factor adds complexity to a project that already presents legal and contractual tensions.
Illegal mining and a context of insecurity
Another area where Hanrine operates is the Imba project, in La Merced de Buenos Aires,
also in Imbabura.
The region has been affected by illegal mining activities linked to organized crime, which represents an additional challenge for the formal development of the sector.
Regulatory tensions with the Noboa government The
relationship between the mining company and the Ecuadorian State was also strained by the implementation of a new mining tax promoted by the government of
Daniel Noboa.
In July 2025, Hanrine filed a lawsuit of unconstitutionality against this measure, which the Executive justified as a mechanism to control illegal mining.
Uncertainty about the future of the project
The delay of mediation adds uncertainty about the future of Llurimagua and about foreign investment in the
Ecuadorian mining sector.
The lack of agreement between the state company and the international investor could impact the country's credibility as an investment destination.
