China is rapidly expanding its presence across Ecuador’s strategic mineral sector, securing access to major gold and copper deposits that are increasingly critical to global industrial supply chains, advanced manufacturing, and the energy transition. The latest step came in April 2026, when Ecuador signed an agreement worth more than $1.7 billion for the development of the Los Cangrejos deposit in the El Oro province. The project will be carried out by ODIN Mining del Ecuador S.A., a subsidiary of the Chinese mining company CMOC.
The site contains proven reserves of 11.6 million ounces of gold and 1.4 billion pounds of copper, with indicated and inferred resources of 20.5 million ounces of gold and 2.7 billion pounds of copper. According to the Andrés Bello Foundation, its estimated annual production of approximately 500,000 ounces of gold would place it among the world’s largest gold-producing mines.
Los Cangrejos is the largest gold deposit identified in Ecuador and one of the most significant undeveloped deposits worldwide. In addition to gold, the project includes copper and molybdenum. It will also become the first large-scale industrial mine on Ecuador’s Pacific coast, opening a new mining corridor with strategic economic potential.
China strengthens its position in Ecuador’s flagship mining projects
China’s growing presence extends well beyond Los Cangrejos.
Through Jiangxi Copper Corporation’s acquisition of the Cascabel project, Chinese companies now control two of Ecuador’s three flagship large-scale mining projects, alongside the Mirador mine, which is also backed by Chinese capital. Located in Ecuador’s Andean Copper Belt near the Colombian border, Cascabel encompasses the Alpala and Tandayama-América deposits across nearly 5,000 hectares. Current projections place it among the world’s largest undeveloped copper, gold, and silver deposits.
Peruvian international analyst Pedro Yaranga estimates that “Chinese companies account for about 60 percent of the country’s copper production capacity,” giving Beijing an increasingly influential position in one of South America’s emerging sources of critical minerals.
“China’s interest combines economic and geopolitical motivations. Investments in developing countries, especially in Latin America, are part of Beijing’s strategy to build new trade routes,” Yaranga told Diálogo. “This secures access to mineral resources — a pattern already documented in other regions, where direct investment in extractive sectors often leads to logistical integration and financial dependence.”
Strategic importance of critical minerals
China’s interest in Ecuador’s mineral resources extends far beyond current commodity prices.
Copper has become a strategic mineral because of its indispensable role in electrical grids, telecommunications infrastructure, artificial intelligence, defense manufacturing, electric vehicles, and renewable energy technologies. Securing reliable supplies of high-grade copper has therefore become a strategic priority for countries seeking to strengthen their industrial and technological capabilities.
Gold remains equally important. Beyond its commercial value, it continues to serve as a strategic reserve asset, with central banks and governments increasing their holdings during periods of geopolitical uncertainty.
Yaranga summarizes Beijing’s long-term calculation: “China needs gold for its medium- and long-term reserves, and Peru and Ecuador are pillars of that mining industry in South America.”
China’s investments in Ecuador are part of a broader long-term strategy to secure access to critical minerals worldwide. Over the past decade, Beijing has steadily expanded its ownership of mining assets across Latin America, Africa, and Asia while maintaining a dominant position in mineral processing and refining. Controlling both extraction and downstream processing strengthens China’s ability to influence critical supply chains from mine to manufacturer.
Investment, sovereignty, and strategic dependency
Ecuador’s mining sector has become one of the country’s fastest-growing industries, driven by significant geological potential and increasing foreign investment. Yet the concentration of strategic assets in companies linked to the Chinese government raises long-term questions about economic resilience and national sovereignty.
Dialogue Earth, a platform dedicated to the environment and Chinese investments in Latin America, has warned that weak oversight of mining tailings in areas such as Imbabura could contaminate water sources, fuel social tensions, and create operational risks that affect both local communities and the long-term stability of mining projects.
As Chinese companies expand their presence across Ecuador’s mining industry, decisions affecting production, infrastructure, financing, and exports increasingly involve actors whose long-term strategic priorities extend well beyond commercial returns.
A regional pattern
China’s consolidation as the leading foreign investor in Ecuador’s large-scale mining sector reflects a broader regional trend. Across Latin America, Beijing has steadily expanded its presence in projects including copper, lithium, rare earth elements, and other critical minerals that underpin advanced technologies, defense systems, semiconductors, and the global energy transition.
As Chinese firms consolidate ownership of critical mineral assets across the region, governments face the challenge of attracting investment while preserving national decision-making authority over industries that support economic resilience, advanced manufacturing, and future defense capabilities.
