Ecuador’s President Daniel Noboa has cast doubt on the future of DPM Metals (TSX: DPM) Loma Larga gold project, handing responsibility for its approval or rejection to authorities in the southern province of Azuay.
The move follows a request from provincial leaders last week that Environment Minister María Luisa Cruz revoke the environmental permit granted to Dundee in June. On Tuesday, residents marched through Cuenca, the provincial capital, protesting the $419-million project. Demonstrators in the “March for Water” argued the mine would threaten the region’s water supply.
Experts counter that while the concession lies within the El Cajas Massif Biosphere Reserve, the project area is outside the water protection zone established by the environment ministry in 2012. Dundee says it has monitored water in the area for 20 years and plans to recirculate 90% of what it uses.
