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Ecuador's gold mine to be powered by hydroelectric energy for the next five years
🇵🇾 Paraguay /Energy & Infrastructure

Ecuador's gold mine to be powered by hydroelectric energy for the next five years

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Canadian miner Lundin Gold signed a renewable energy contract to power its Fruta del Norte gold mine with hydroelectricity for five years.
  • The agreement will supply power from the 45 MW Hidroquest hydroelectric plant, expected to start operations in the second half of 2026.
  • This move supports Lundin Gold's goal of carbon neutrality by 2030 and strengthens Ecuador's position as a gold exporter.

Lundin Gold, a Canadian mining company, has secured a five-year renewable energy contract to power its Fruta del Norte gold mine in Ecuador's Amazon province of Zamora Chinchipe. The agreement with Barka Capital will supply hydroelectric power from the 45-megawatt (MW) Hidroquest plant, slated to begin commercial operations in the latter half of 2026.

The contract is designed to meet Fruta del Norte's current energy demand of approximately 20 MW, with the potential to increase to 27 MW over the next five years, all sourced from 100% hydroelectric power. This initiative is a key part of Lundin Gold's strategy to ensure operational continuity and advance its commitment to achieving carbon neutrality by 2030 by reducing emissions linked to electricity consumption.

The contract will cover the current energy demand of Fruta del Norte, estimated at about 20 MW, with the possibility of increasing it to 27 MW in the next five years, through 100% hydroelectric energy.

— Lundin GoldStatement from Lundin Gold detailing the scope of the new energy contract.

Beyond its environmental goals, the private energy supply agreement will also help alleviate pressure on Ecuador's National Interconnected System. By decreasing the mine's demand on the public grid, it frees up capacity for other users. Fruta del Norte is a significant contributor to Ecuador's economy, accounting for over 70% of the country's gold exports, according to Juan José Herrera, Director of Business Sustainability at Lundin Gold.

Herrera emphasized the mine's national importance, stating, "In 2024 and 2025, Lundin Gold was the country's largest taxpayer. The continuity of an operation like ours is in the national interest." Mining activity has become a crucial sector for Ecuador, ranking as the third-largest export item in the first quarter of 2026, generating $1.381 billion in foreign sales, trailing only shrimp and oil.

In 2024 and 2025, Lundin Gold was the largest taxpayer in the country. The continuity of an operation like ours is in the national interest.

— Juan José HerreraDirector of Business Sustainability at Lundin Gold, highlighting the mine's economic importance to Ecuador.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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