This document summarizes the key trends and issues related to mega-mining in Ecuador and globally: - Exploration and mining budgets increased dramatically from 1980-2010, driven by high commodity prices and demand from China. - Mega-mining projects in Ecuador involve the extraction of millions of tons of ore and generate hundreds of millions of tons of waste, using vast quantities of water and land. - These projects have significant social and environmental impacts and have led to increasing conflicts with indigenous and local communities. - Globally, the quality of ore bodies is declining, requiring even larger volumes of waste to be extracted and processed. Accidents at large tailings dams, such as in Brazil and Canada, have caused

1. MEGAMINERÍA EN EL
ECUADOR Y EL MUNDO

2. • 1980-2000: CONSENSO DE WASHINGTON
• 2000-2010: CONSENSO DE LOS COMMODITIES
• 2010-…. : CONSENSO DE BEIJING
SITUACIÓN POLÍTICO-LEGAL
COYUNTURA ECONÓMICA GLOBAL
• CRISIS
• PRECIOS ALTOS
• ALTA DEMANDA
• PRODUCCIÓN CRECIENTE
1947 1967 1987 2007
Indicio CRB de los precios de los metales (valores reales)
100
300
500
700
900
crisis petroleras
crisis asiáticas
demanda china
fuente: Roseneau-Tornow et al., 2009
1930 1940 1980 2010
Producción de varios metales (millones de toneladas)
5
10
1950 1960 1970 1990 2000
15
20
25
30
35
40
45
Aluminio
Cobre
Zinc
Plomo
fuente: SIM/BRGM/USGS

3. 3
TAL
exploration estimate is based
more than 3,500 mining
ldwide, of which more than
reported in the CES study.
ing at least $100,000)
on for nonferrous exploration,
t 95% of worldwide
ous exploration spending.
ts that we could not obtain,
oration budget reached
emains outside the scope
in the analysis throughout
e began coverage of iron ore
tially surveyed companies
above and beyond the core
Figure 1: Estimated Global Nonferrous Exploration Budget Totals,
1993-2013
0
1
2
3
4
5
$0
$4
$8
$12
$16
$20
$24
93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
IndexedMetalsPrice(1993=1)
NonferrousExploration(US$bil)
Nonferrous Exploration Total SNL Metals & Mining Indexed Metals Price
aggressively increased their exploration budgets, lifting the
industry’s budget total by 44% in 2010 to $11.51 billion,
« SUPERCICLO » MINERO

4. Volúmenes de “estériles” en Mt en minas de oro de
Australia, Canadá, E.E.U.U y Papúa Nueva Guinea
(Mudd, 2007).
GIGANTISMO MINERO

5. Mirador:
Gigantismo minero
Tundayme
Escombrera
total: 438 millones de T
= 5 panecillos
Relavera 2
447 millones de m3
= 3 x Lago San Pablo
Relavera 1
44 millones de m3
Tundayme
Cráter
diámetro: 1,5 km
profundidad: 1 km
Consumo (y contaminación) de agua / día = Ibarra Desechos / día = 6 x Quito

6. GENERALIZACIÓN DE LOS CONFLICTOS
210 CONFLICTOS MINEROS EN VIGENTES EN AL

7. 26 PROYECTOS
6 GRANDES PROYECTOS AVANZADOS
Proyecto Metal
Empresa en
Ecuador
Empresa
matriz
País
Llurimagua Cobre Enami E.P Codelco Chile
Río Blanco Oro Ecuagold S.A Junefields Hong Kong
Loma
Larga
Oro
INV Ecuador
S.A
INV Canadá
Fruta del
Norte
Oro
Aurelian
Ecuador S.A
Lundin
Gold
Suecia/
Canadá
Panantza-
San Carlos
Cobre EXSA
Tongling-
CRCC
China
Mirador Cobre ECSA
Tongling-
CRCC
China
Concesiones en trámite (1.768.677 Ha)
Concesiones inscritas (828.649 Ha)
Bloques mineros prioritarios (654.043 Ha)
Quito
Guayaquil
Cuenca
Loja
Llurimagua
Cascabel
Curipamba
Río Blanco Loma Larga
Ruta del Cobre
Gaby Gold
Shyri
Cangrejos
Zaruma
Caña Brava
Dynasty Gold
Panantza-San Carlos
Mirador-Mirador Norte
Fruta del Norte
Condor Gold
El Hito
Jerusalén
Río Zarza
Caya 21
Tola Norte
La Bonita
Pacto
Telimbela
El Torneado
Nanguipa
Sangola
Megaproyectos Mineros
Megaproyectos Mineros de la ENAMI
Ciudades

8. Antes de
04/2016
enero de 2017
Superficie
Concesionada
~ 790.000 Ha 2.657.306 Ha
% del país ~ 3 % ~ 11 %
Desde abril de 2016:
un nuevo
« Festín minero »
Ejemplo: Aurania Resources
420.000 Ha de concesiones incritos y
en trámite en Morona-Santiago
Concesiones en trámite
(1.828.666 Ha)
Concesiones inscritas (828.649 Ha)
Bloques mineros prioritarios
(654.043 Ha)

11. Cordillera del Cóndor
Cuenca
Loja
Zamora
Panantza -San Carlos
Mirador -Mirador Norte
Fruta del Norte
Megaproyectos en la
Cordillera del Cóndor
• Mirador-Mirador Norte
• Panantza-San Carlos
• Fruta del Norte

12. Mirador-
Mirador Norte
Panantza-
San Carlos
Superficie
concesionada
9.786 Ha 38.549 Ha
El Pangui
Gualaquiza
Panantza
San Carlos
Mirador Norte
Mirador
Tundayme
Nankintz
Megaproyectos mineros
de la Tongling-CRCC
Ciudades y comunidades
Concesiones de la Tongling-CRCC
asociadas a los megaproyectos mineros
Otras concesiones de la Tongling-CRCC
Otras concesiones mineras inscritas
Otras concesiones mineras en trámite
Territorio del Pueblo Shuar Arutam

13. Panantza-
San Carlos:
Gigantismo minero
Following immediately below is a 3D representation of the company’s current view of the proposed Panantza – San Carlos mine
site, based upon the Preliminary Assessment Technical Report referenced above.
Other opportunities within the Corriente Copper Belt include the La Florida, San Miguel, San Luis, San Marcos and Sutzu
porphyry prospects, all of which are located within 10 to 12 kilometres of the Panantza prospect, as well as the Dolorosa
sediment-hosted copper prospect, located mid-way between the Panantza and Mirador properties.
Cráter de Panantza Cráter de San Carlos
Relavera
~720 millones de m3
= 5 x Lago San Pablo
Desechos / día = 10 x Quito
Nankints

14. MIRADOR Y PANANTZA-SAN CARLOS:
DESECHOS PRODUCIDOS
Proyecto Metales
Empresa en
Ecuador
Empresa
matriz
País
Superficie
concesionada
Tratamiento
diario
previsto
Desechos
sólidos
diarios
Desechos
totales
Equivalente
en
Panecillos
Mirador -
Mirador
Norte
Cobre / Oro ECSA
Tongling-
CRCC
China 9.928 Ha 60.000 t/d 106.800 t/d 970 Mt 12
Panantza-
San Carlos
Cobre EXSA
Tongling-
CRCC
China 38.549 Ha 90.000 t/d 178.200 t/d 1.414,27 Mt 17

15. BAJA TENDENCIA DE LA CALIDAD DE LOS YACIMIENTOS
Calidad de los yacimientos (1840-2010)

16. Exploración
identificación del yacimiento
« Desarrollo »
Construcción de las infraestructuras
Extracción
remoción y tratamiento de la
roca
« Cierre »
remoción y tratamiento de la roca
Duración Presupuesto
$US
5-20 años
2-3 años
8-30 años
~ 10-50 M
~1000-5000 M
~1000-5000 M
ETAPAS DE UN MEGAPROYECTO
MINERO METALÍFERO

17. GIGANTISMO MINERO
1 t de Cu = 300-500 t de
desechos sólidos +
contaminación de 170.000
litros de agua
354 Industrial Ecology at the Sectoral/Materials Level
Coal
Gross production = 18444MMT
Net production = 3787MMT
Building Stone
& Aggregates
Gross production = 14186MMT
Net production = 10430MMT
Brown Coal & Lignite
Gross production = 9024MMT
Net production = 930MMT
Copper
Gross production = 4190MMT
Net production = 9.3MMT
Petroleum
Gross production = 3489MMT
Net production = 3065MMT
Iron
Gross production = 3138MMT
Net production = 604MMT
Gold
Gross production = 2138MMT
Net production = 0.002MMT
Phosphate
Gross production = 477MMT
Net production = 119MMT
Nickel
Gross production = 403MMT
Net production = 0.72MMT
Bauxite
Gross production = 302MMT
Net production = 101MMT
Clay
Gross production = 231MMT
Net production = 154MMT
Zinc
Gross production = 222MMT
Net production = 6.9MMTWaste
Mineral
produced
Figure 28.1 World mineral production and total ‘hidden flows’ for the 12 commodities
1 onza de oro (30g ~un
anillo) = 20-400 t de
desechos + contaminación
de 20.000 litros de agua

18. GRANDES ACCIDENTES: BRASIL, 2015 Nombre: Samarco,
Empresa: Vale, Brasil -
BHP, Australia
Ubicación: Minas Geiras, Brasil
Fecha: 5/11/2015
Ruptura de relavera
mina de hierro
32.000.000 metros
cúbicos de lodos
contaminados
17 muertos, 800 km de
río contaminados

19. GRANDES ACCIDENTES: CANADÁ, 2014
Ruptura de relavera mina de cobre
14.500.000 metros cúbicos de lodos
contaminados
> 50.000 Ha de Bosque Boreal
destruídos
> 10.000 personas sin agua potable
Nombre: Mount Polley
Empresa: Imperial Metals, Canadá
Ubicación: Colombia Británica, Canadá
Fecha: 08/2014

20. CONSEQUENCIA 1: « SUPERCICLO » MINERO
1991-1999: inversión en exploración
x 5 en AL
(Mining Journal, citado en Borg, 1998)
2003-2012: inversión en exploración
x 10 a nivel global
25% en AL
(MEG, 2013)
3
BASIS FOR ESTIMATED
NONFERROUS EXPLORATION TOTAL
SNL Metals & Mining’s 2013 exploration estimate is based
on information collected from more than 3,500 mining
and exploration companies worldwide, of which more than
2,100 had exploration budgets reported in the CES study.
These companies (each budgeting at least $100,000)
together allocated $14.43 billion for nonferrous exploration,
which we estimate covers about 95% of worldwide
commercially oriented nonferrous exploration spending.
Adding our estimates of budgets that we could not obtain,
the 2013 worldwide total exploration budget reached
$15.19 billion.
Although iron ore exploration remains outside the scope
of the CES and is not included in the analysis throughout
the remainder of this report, we began coverage of iron ore
explorers in 2011 when we initially surveyed companies
for their total ferrous budgets above and beyond the core
targets detailed in the CES. Including the allocations by
a number of pure iron ore producers and explorers that
were not otherwise part of the study, we compiled a total
exploration budget of $1.74 billion for iron ore in 2013,
down from $2.89 billion in 2012. Aggregating the iron ore
budgets with the budgets for the other commodities covered
by the CES, the total 2013 exploration budget rises to
$16.17 billion, of which 11% is attributable to iron ore.
SUMMARY OF OVERALL TRENDS
Figure 1 shows SNL Metals & Mining’s estimate of annual
Figure 1: Estimated Global Nonferrous Exploration Budget Totals,
1993-2013
0
1
2
3
4
5
$0
$4
$8
$12
$16
$20
$24
93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
IndexedMetalsPrice(1993=1)
NonferrousExploration(US$bil)
Nonferrous Exploration Total SNL Metals & Mining Indexed Metals Price
aggressively increased their exploration budgets, lifting the
industry’s budget total by 44% in 2010 to $11.51 billion,
and by a further 50% in 2011 to $17.25 billion.
Continued uncertainty in Europe and the United States,
along with concerns over waning demand in China, caused
most metals prices to dip or at best level off through 2012.
Nevertheless, most metals prices remained well above their
ten-year averages, and exploration budgets continued to
increase in 2012 (up 19%), setting a new all-time high of
$20.53 billion. Despite the increase, 2012 represented
a year of change for the industry. Beginning in April,
investors became increasingly wary of the junior sector,
causing many companies to struggle to raise funds for their

21. MARCO LEGAL MINERO EN EL ECUADOR
1991: Ley 126
2000: Ley Trole II
2001: Reglamento de la Ley de Minería
2009: Ley de Minería
2009: Reglamento de la Ley de Minería
2013: Reforma a la Ley de Minería
Pos-neoliberal
2008: Mandato Minero
Neoliberal

22. CONFLICTOS EN LA ÉPOCA NEOLIBERAL