Ecuador’s government issued new mining regulations adjusting royalty calculations and strengthening regulatory oversight, adding pressure on an industry already required to generate its own electricity amid the country’s ongoing energy crisis.
President Daniel Noboa signed Executive Decree 273 on December 31, 2025, modifying mining regulations that have governed the sector since 2009. The decree strengthens oversight powers of the Mining Regulation and Control Agency and establishes stricter documentation requirements, including environmental management plans, economic information, and tax compliance certificates.
The decree introduces new royalty formulas for medium and large-scale metallic mining operations. Royalties range between 3% and 8% of revenues, with payments made semiannually.
The regulatory changes compound challenges facing mining companies already navigating Ecuador’s energy crisis. Executive Decree 32 from June 2025 required all high-voltage consumers to install power generation systems by December 18, 2026. Ecuador experienced 12-hour daily power cuts in late 2024 due to droughts affecting hydroelectric capacity.
Companies like Lundin Gold signed contracts over a decade ago that included state electricity supply provisions. Lundin Gold now self-generates approximately 8.5 megawatts of the 16 megawatts it consumes daily.
Ecuador reopened its mining concessions registry in June 2025 after closing it in 2018. The registry plans to reopen for all mining types in early 2026.
The mining sector generated $3 billion in exports in 2024 and provided 55,000 direct jobs in 2023.
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