Ecuador Presses Chinese Mining Companies to Generate Their Own Power
Ecuador is pressing Chinese mining companies to build their own power plants before a December 2026 deadline. The mercury demand that came with it restates a ban written into law in 2013. The post Ecuador Presses Chinese Mining Companies to Generate Their Own Power appeared first on The Rio Times .
Ecuador's President Daniel Noboa has urged Chinese mining companies operating in the country to generate their own electricity and strictly adhere to regulations regarding mercury use. During a two-week tour of China, Singapore and Vietnam in August 2026, Noboa emphasized that Ecuador respects its laws and expects Chinese investors to comply. He outlined two key demands: Chinese mining firms must supply their own electricity and ensure no mercury or traces of mercury are present in the extracted material.
The first demand pertains to the installation of power generation plants by the mining companies themselves. If they fail to add capacity, they may lose grid access. The second demand stresses the prohibition of mercury use in the mining process and the absence of mercury residue in the extracted material. These demands were not presented as new decrees or resolutions but as ongoing enforcement of existing rules.
Existing Executive Decree 32, published in June 2025, mandates high-voltage regulated customers to install their own generation within 18 months, with the deadline falling on December 15, 2026. About 171 large consumers fall under this rule, including miners such as Lundin Gold and Ecuacorriente, steelmakers like Novacero and Adelca, and Petroecuador. Together, they consume roughly 250 megawatts, accounting for nearly 6% of the national average demand.
Under the recent 2013 Mining Law reform, Ecuador banned the use of mercury in mining activities nationwide, with severe penalties for non-compliance. The Minamata Convention on Mercury, a global treaty aiming to limit the use of mercury, also influences Ecuador's stance. Ecuador has filed a national action plan to address artisanal and small-scale gold mining, which is largely informal or criminal.
The demand for power generation from Chinese mining companies is crucial, as the sector is rapidly expanding and poses a significant challenge to the country's power supply, especially during the dry season. Five projects in the pipeline would require approximately 551 megawatts once operational, surpassing the average consumption of Manabí province. The Mirador mine's disconnection from the grid in October 2024 freed 83 megawatts for households during a critical phase of the energy crisis.
While Ecuador has banned mercury use in mining and adheres to the Minamata Convention, the new demand places a spotlight on Chinese mining companies, ensuring they are audited for compliance. Gold concentrate exports, which are increasingly subject to mercury testing, are a key export for Ecuador. The president's message to Chinese mining firms underscores the importance of power generation and environmental responsibility in the country's growing mining industry.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
