Ecuador's Mining Tax Revenue Rises Significantly

According to a report on the BNAmericas website, the mining industry has become a major source of tax revenue for Ecuador, primarily from two operating mines: the Mirador copper mine and the Fruta del Norte gold mine.

Data from investment consulting firm Humboldt Management shows that in 2024, Ecuador's mining industry generated over $1 billion in tax revenue. This represents a 218% increase from 2019, when tax revenue from the mining industry was only $315 million in the year the Mirador (July) and Fruta del Norte (November) mines commenced production.

This figure represents a 31% increase from the $763 million in 2023.

Currently, mining taxes account for approximately 5% of Ecuador's total tax revenue. However, this proportion is expected to increase significantly by 2030-31, as six projects are expected to commence construction and operation.

Curipamba-El Domo will be the first project to break ground. In September this year, Silvercor and Salazar Resources will invest $241 million to construct the beneficiation plant and ancillary facilities for this polymetallic project. This investment will significantly boost VAT revenue.

Due to rising copper and gold prices, income tax revenue is also expected to increase in 2025.

In 2023, Ecuador's export value of mineral products (including small mines) was close to $3 billion. Rebeca Illescas, the Deputy Minister of Mines, predicted last month that mineral product exports are expected to increase by 10%-14% this year.

Daniel Noboa, who was re-elected, will begin his new term on May 24, presenting significant development opportunities for the mining industry. However, regardless of political changes, developing the mining industry remains a crucial national policy for Ecuador.