- Ecuador’s Constitutional Court unanimously upheld the environmental license for the El Domo mining project.
- The Court confirmed the consultation process met international standards and the project has strong community backing (98% support).
- The El Domo Project is expected to deliver significant socio-economic benefits to the Las Naves community.
- The ruling clears the path for continued project advancement
Silvercorp Metals (NYSE American/TSX: SVM), a Canadian mining company producing silver, gold, lead, and zinc, has seen the legal challenge over its El Domo mining project in Ecuador come to an end. The country’s Constitutional Court unanimously dismissed a final challenge to the project’s environmental license, concluding a year-long judicial process that progressed through multiple levels of the Ecuadorian court system (https://ibn.fm/K25Ad).
The ruling confirms the validity of the environmental license issued by the Ministry of Environment, Water, and Ecological Transition (“MAATE”) and affirms 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, known as the Escazú Agreement.
With 98% of residents within the project’s area of influence supporting the initiative, the project has broad community backing. The El Domo project, currently under construction, is anticipated to deliver long-term socio-economic benefits to Las Naves, as well as Ecuador as a whole, including job creation, a new source of tax revenue and local development opportunities.
The legal challenge began on June 5, 2024, when a group filed a constitutional protection action against MAATE, arguing that the environmental consultation process was inadequate. On July 24, 2024, the local court in Las Naves dismissed the action, ruling that MAATE had followed proper procedures. This decision was upheld by the provincial court on November 12, 2024.
The plaintiffs then turned to the Constitutional Court with an Extraordinary Protection Action in December 2024, which was rejected in February 2025 for failing to meet constitutional criteria. A subsequent motion for clarification was denied on July 24, 2025, closing the case.
As the first mining operation in Ecuador to undergo an environmental consultation aligned with Escazú Agreement standards, El Domo is also a precedent-setting case for the sector. Once in production, targeted for late 2026, the project is expected to materially enhance the company’s financial performance, while providing geographic and metals diversification, with increased exposure to copper and gold.
The project’s development aligns with the company’s goal of creating sustainable shareholder value while fostering local economic development, supporting the company’s broader strategy of generating free cash flow from long-life mines, pursuing organic growth through exploration, and expanding via acquisitions.
For more information, visit the company’s website at www.silvercorpmetals.com/welcome.
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