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China's CMOC Group signed a $1.7 billion mining contract with Ecuador on April 27 for the Los Cangrejos gold-silver project in El Oro province, developed through local subsidiary ODIN Mining del Ecuador. Structure: state receives 50% of project value; $54M advance royalties ($34M on signing, balance at construction milestones). Projected state revenues: $4.39B. Ecuador's only two large-scale operations — Mirador copper and Fruta del Norte gold — both reached production in 2019. Los Cangrejos would be the third.
China Mineral Resources Group (CMRG) — the state-backed iron ore buyer created in 2022 — is in advanced talks to finalize a long-term supply agreement with Fortescue (ASX: FMG). Fortescue executives met CMRG in China earlier this week. Talks hinge on pricing benchmarks: Fortescue prices standard products against an average of the Mysteel index and Argus Iron Ore Index; high-grade Iron Bridge concentrate vs Platts 65% index. BHP confirmed its own CMRG deal last week. Rio Tinto similarly in talks. CMRG is systematically consolidating China's buying power over seaborne iron ore.
Peru's Ministry of Energy and Mines reauthorized Southern Copper's (NYSE: SCCO) $1.8 billion Tía María copper project after revoking its permit earlier in April over documentation deficiencies. The project now complies with all requirements — environmental certification, land verification, safety obligations. Construction begins at La Tapada open-pit mine, Arequipa. Target: 120,000 tpa copper, 20-year mine life, late 2026 or early 2027 production start. Project approximately 23% complete. First Quantum Q1 2026 results due after today's market close — watch Sentinel ball mill status and Cobre Panamá stockpile update.
