Ecsa Forecasts 5% Growth in Ecuador's Copper Production

Ecsa-Ecuacorriente, the Chinese copper producer operating Ecuador’s largest copper mine, expects to increase its copper concentrate production by around 5%, according to production coordinator William Arteaga. Ecsa runs the Mirador mine, Ecuador’s only large-scale copper operation, which accounted for 95% of the country’s copper concentrate exports in 2023, totaling 580,300 metric tonnes.

Production Gains and Challenges Ahead

In the first half of 2024, Ecsa produced 302,980 tonnes of copper concentrate, marking an 8% increase compared to the same period in 2023. This growth is largely attributed to improved processing of mineralized materials. Currently, the Mirador mine processes around 65,000 tonnes per day, a significant 8% rise from last year. However, Arteaga noted that achieving 2024 production goals hinges on Ecuador avoiding scheduled power blackouts through the end of the year.

Ecuador is preparing for a severe dry season from September to March, which is expected to impact the country's main hydroelectric plants. To counter potential power shortages, the state-owned utility Celec has secured 351MW of thermoelectric power for September-December and plans to tender an additional 700MW.

Cancellation of Santa Cruz Hydroelectric Plant

Ecsa also announced it will not proceed with the construction of the 128MW Santa Cruz hydroelectric plant, which was initially planned to supply power to the Mirador Norte copper deposit. This deposit is set to start operations in the second half of 2025. Although Ecsa committed to building the plant as part of its 2012 exploitation contract with Ecuador, the project has faced continuous delays. The company now considers the project “economically unfeasible” due to other hydroelectric developments upstream.

Mining vice-minister Diego Ocampo had previously indicated that Ecuador’s grid lacked the capacity to supply power to Mirador Norte and urged Ecsa to either build the Santa Cruz plant or install a thermoelectric facility of comparable power. However, Ocampo resigned unexpectedly on August 26.

Investment and Future Outlook

Despite challenges, Ecsa has invested $104 million in the Mirador and Mirador Norte projects so far this year. The company plans to increase this investment to $195 million in 2025, more than doubling the $88 million invested in 2023. However, Ecsa's legal vice president Mauricio Nunez warned that without sufficient power, the company might be forced to reduce its copper concentrate production.