June 26, 2025 – Shanghai – CMOC Group announced today that it has successfully completed the acquisition of 100% equity in the Cangrejos Gold Project in Ecuador, marking a major milestone in the company’s strategic expansion into the global gold sector. The transaction closed on June 24, 2025.

On June 26, CMOC Chairman and Chief Investment Officer Mr. Liu Jianfeng met with Ecuadorian President Daniel Noboa in Beijing to discuss the Cangrejos project and CMOC’s development plans in the country. President Noboa expressed his support for accelerating the project and encouraged CMOC to further expand its investment and operations in Ecuador, affirming the government’s commitment to supporting its progress. Mr. Liu also held constructive meetings the same day with Ecuador’s Minister of Energy and Mines and Minister of Finance to further exchange views on project development and future cooperation.

Located in El Oro Province in southwestern Ecuador, the Cangrejos project is a large-scale porphyry deposit situated in the prolific Andean metallogenic belt at an elevation of approximately 1,100 meters. According to a 2023 pre-feasibility study, the project has a measured and indicated resource of 1.376 billion tonnes with an average gold grade of 0.46 g/t, containing 638 tonnes of gold. The proven and probable reserve is estimated at 659 million tonnes with an average gold grade of 0.55 g/t, containing 359 tonnes of gold. The mine is expected to have a life of 26 years.

The project offers strong development advantages, including shallow, open-pit mineralization, a low strip ratio, and proximity to key infrastructure—just 30 km from Machala, 40 km from a major port, 20 km from a substation, and 8 km from a highway—with ample water supply, enabling low-cost development.

CMOC has assembled a multidisciplinary project team to fast-track development, with commercial production targeted for 2028. The mine is expected to produce an annual average of 11.5 tonnes of gold and could increase Ecuador’s annual gold output by nearly 50%, based on 2024 figures. 

“The acquisition of the Cangrejos Gold Project marks CMOC’s entry into the gold sector and reinforces our strategic presence in South America,” said Mr. Liu Jianfeng. “As our second major investment in the region, following our niobium and phosphate operations in Brazil, Cangrejos reflects our long-term commitment to developing world-class, large-scale assets. With our proven operational expertise and industry-leading ESG management system, we are well-positioned to transform this project into a cost-efficient, environmentally responsible mine—one that creates lasting economic value while supporting local communities and advancing sustainable development.”

CMOC’s acquisition of the Cangrejos project takes place amid recent updates to Ecuador’s mining framework, including adjustments to permitting procedures, the introduction of fiscal incentives, and the reopening of concession registrations. These developments provide a more stable and supportive environment for advancing long-term project development.