By Fabiana Negrin Ochoa

A subsidiary of Chinese mining group CMOC has inked a $1.7 billion deal with Ecuador to develop a mine in the country's gold-rich El Oro province.

Ecuador's environment and energy ministry said in a statement on its website late Monday that the project called Los Cangrejos will be developed by CMOC subsidiary Odin Mining del Ecuador.

CMOC, a major producer of molybdenum and tungsten, took over the project last year via the acquisition of Vancouver-based Lumina Gold.

It said at the time that the gold-copper Cangrejos site was the centerpiece of the transaction. A pre-feasibility study estimated the mine's life at 26 years, with measured and indicated resources totaling 638 tonnes of gold, and proven and probable reserves equating to 359 tonnes of gold.

Under the terms of the deal, the state will get a 50% share of the project's value, with the ministry estimating that it will receive about $4.39 billion, including patents and royalties.

The agreement guarantees that the project will generate state revenue from the start, the ministry said.

CMOC's Hong Kong-listed shares were last down 3.8%, while A-shares were down 2.4%.

Write to Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com

(END) Dow Jones Newswires

April 28, 2026 02:23 ET (06:23 GMT)

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