Ecuadors government has started charging a new fee to mining companies, aiming to collect $229 million each year.Officials say this money will help them better control mining activities and fight illegal mining, which has caused serious environmental problems in the country.The new fee began in June 2025 and applies to almost all mining companies, except for small-scale, artisanal miners.The fee is highest for companies exploring new mining sites.
They now pay up to $11.50 per hectare, which is more than in other Latin American countries.For example, Colombia charges $6.70, Chile $4.50, and Peru $3 per hectare.Mining companies in Ecuador say this fee is too high, especially for early-stage projects that do not make money yet.They warn that these costs could stop new projects from starting, which would mean less investment in Ecuador.Mining has become an important part of Ecuadors economy.
In 2024, the government collected over $1 billion in mining taxes, up 218% from 2019.Mining now makes up about 5% of all tax revenue, and the government expects this share to grow as more projects begin.New Mining Charges in Ecuador Raise Industry Costs and Environmental StakesNew Mining Charges in Ecuador Raise Industry Costs and Environmental StakesThe countrys mining exports, mainly copper and gold, are set to reach over $4 billion a year, making mining the third-largest export sector by 2025.Despite the economic benefits, illegal mining has grown quickly and doubled since 2020.
This has led to pollution, deforestation, and damage to Indigenous lands.Armed groups have also moved into mining areas, making the situation even more difficult.
The government says the new fee will help pay for better monitoring and environmental protection.Industry groups say the government did not discuss the fee with them before making it law.They argue that these high costs could hurt Ecuadors reputation and make investors look elsewhere.In 2024, investment in mining exploration in Ecuador was $67 million, much less than in Argentina, Peru, or Chile.Ecuadors new mining fee shows the challenge of balancing government income, attracting investment, and protecting the environment.