Police and military operations reduce gold exports; Poor families get electricity assistance; Light rains and reduced use delay water shutoffs by at least a week

Industry and government officials say the decline in gold exports is a sign that law enforcement operations against illegal mining are working. In the first six months of 2024, gold exports totaled $545 million, compared with $654 million in the same period. period of 2023.

“The drop is even more impressive when you consider that the gold price is almost 30% higher this year than last year,” said María Eulalia Silva, president of the Ecuadorian Chamber of Mining. “The efforts of the police and the armed forces are having the desired effect, and many of the illegal operations have been closed or disrupted since the beginning of the year. We need many, many more measures like this from the government.”

Gold mining experts say it is difficult to distinguish gold exported from legal and illegal gold mines in Ecuador. They say buyers often do not care.

Silva said both legal and illegal gold exports are counted by international buyers. “It’s hard to tell how many sales are from legitimate sources and how many are not,” she said. “As criminal gangs target mining operations, the pressure on the government to control this is increasing.”

Former Deputy Minister of Mining Diego Ocampo alleges that large amounts of drug money are laundered through the mining process. “The gangs see mining not only as an opportunity to make more money, but also to launder and hide the money they make from cocaine,” he says. “Some of the sanctioned mines have become involved in criminal activities because of the extra money they can make and of course the pressure on illegal mining is enormous.”

He added that the complexity of the mining process makes money laundering easy. “You not only have the mines themselves, but the processors and buyers are also part of the network, and many of these operations do not keep proper records,” he said. “Greed is a strong factor in gold and many in the industry do not care about the origin of the product.”

Like Silva, Ocampo says government operations are impacting illegal mining activities. “The total number of ounces sold this year is well below last year’s numbers, which shows that these efforts are working. The fight against illegal mining is an area where the armed forces can make a big difference, as they have the firepower to confront criminals that the police do not.”

Poor families receive help with electricity shortage
Ecuadorian households that use less than 180 kW of electricity per month will not receive a bill in December 2024 and January and February 2025. President Daniel Noboa made the announcement Monday, saying Ecuador’s poorest “need some relief” during difficult economic times.

According to government minister Arturo Félix Wong, 3.5 million Ecuadorians are eligible for the subsidy and it will cost the government $34 million.

“This year has been difficult for our poorest citizens,” Noboa said in a video statement. “The government has had to take tough measures to save families and the country from the financial mess the government has been left in,” referring to the increase in the value-added tax and higher gasoline prices. “We must take care of those who suffer the most.”

Light rainfall and reduced usage delay water shutoffs
While water rationing remains an option, Cuenca officials say it won’t begin for another week. “We had some light rain over the weekend and today (Monday),” said Cuenca Mayor Cristian Zamora. “We have also benefited from the conservation efforts of our citizens and have seen a 10% to 12% reduction in water consumption.”

Zamora said the goal is a 20% reduction. “We urge all Cuencanos to conserve water and keep our reservoirs full.”

Earlier Monday, Cuenca’s director of drinking water services, Fabián Cazar, said his office is taking “extraordinary” measures to maximize water collection at facilities on the city’s western side. “Because the Cajas watershed is depleted, we are processing low water flow, which means high levels of sedimentation,” he said. “When the water flow from the mountains is reduced, it contains more rock and soil, which must be filtered out before it reaches the storage ponds.”

One consequence of the increased filtration, Cazar says, is that there is less water available to flow into Cuenca’s rivers. “We are taking away drinking water that would otherwise flow into the Rios Tomebamba and Yanuncay.”