Ecuador's Constitutional Court Upholds Silvercorp's El Domo Mining Project Environmental License

Silvercorp Metals Inc. has received final judicial approval for its El Domo mining project in Ecuador after the country's Constitutional Court unanimously dismissed the last legal challenge against the project's environmental license. The ruling concludes a year-long judicial process that progressed through multiple levels of the Ecuadorian court system, providing certainty for the Canadian mining company's operations in the South American nation.

The court confirmed that the environmental consultation process complied with both Ecuadorian law and the standards of the Regional Agreement on Access to Information, Public Participation and Justice in Environmental Matters in Latin America and the Caribbean. This validation of the consultation process is particularly significant given the project's reported 98% community support in the Las Naves area, demonstrating strong local backing for the mining development.

The ruling affirms the validity of the environmental license originally issued by Ecuador's Ministry of Environment, Water, and Ecological Transition (MAATE). This judicial endorsement removes the final regulatory hurdle for Silvercorp Metals, allowing the company to proceed with project development that is expected to deliver substantial socio-economic benefits to the local community.

The El Domo project represents a major investment in Ecuador's mining sector and is positioned to contribute to the country's economic development through job creation, infrastructure development, and local economic stimulation. The court's decision reinforces Ecuador's commitment to balancing environmental protection with economic development, setting a precedent for how international environmental standards can be integrated with national regulatory frameworks.

For the mining industry, this ruling demonstrates that properly conducted environmental consultation processes that meet international standards can withstand legal challenges, providing greater certainty for foreign investors in Ecuador's resource sector. The project's advancement through the judicial system also highlights the robustness of Ecuador's legal framework for major resource projects.

The resolution of this legal challenge through Ecuador's highest court provides clarity for all stakeholders involved and allows Silvercorp Metals to focus on project implementation and community engagement. The company's ability to navigate the complex regulatory environment and secure final approval positions it favorably for continued operations and potential future investments in the region.