The Ministry of Energy and Mines issued Ministerial Agreement MEM-MEM-2025-0023-AM of July 5, 2025, which amends the instructions for the granting of mining concessions for non-metallic minerals or construction materials of up to 300 mining hectares under the special regime for small-scale mining (the “Instructions“).
This regulation strengthens the application process for the granting of these concessions through clear technical criteria, defined deadlines and verification mechanisms that seek to guarantee transparency, traceability and legality.
Subsequently, through resolution number ARCOM-ARCOM-2025-0029-R of July 8, 2025, the Mining Regulation and Control Agency approved the gradual opening of the National Mining Cadastre for non-metallic materials under the small-scale mining regime[1].
The following are the most relevant aspects of the Instructions:
- The administrative procedure for petition established by the Instructions is as follows:
a. The petitioner shall submit the physical application to the Undersecretariat of Artisanal Mining and Small Mining with the following information:
- Names, identity document number of the petitioner and the capacity in which he or she appears, with the documentation that proves it.
- Nationality; address of the petitioner and email for notifications.
- Name of the mining area, surface, location; number of mining hectares; and cadastral coordinates in UTM.
- Full names, identity document number and registration number in the SENESCYT of the technical and legal advisors.
- Signature of the applicant(s) and of the technical and legal advisors. If it is a condominium, the application must be signed by all the applicants, appointing a common attorney.
The general requirements for all applications are as follows:
- Single Taxpayer Registry – RUC – in force with the main economic activity related to mining activities.
- Certificate of tax compliance issued by the Internal Revenue Service – SRI – that demonstrates that the petitioner is up to date with their obligations.
- Certificate of compliance with employer obligations from the Ecuadorian Social Security Institute – IESS – showing that the petitioner is up to date with his or her obligations.
- Work and investment plan.
The specific requirements are as follows:
Individuals
-For natural persons acting in the name and representation of another, a general or special power of attorney must be attached, broad and sufficient for the application.
-Bank certificates corresponding to the financial movement of the last 6 months.
-The petitioner’s last income tax return that justifies 100% of the proposed investment or an affidavit by which the petitioner proves ownership of assets (equipment and/or machinery related to the mining activity).
National legal entities
-Certificate of compliance with obligations and legal existence from the Superintendence of Companies, Securities and Insurance showing that the petitioner is up to date with his or her obligations.
-Current and registered appointment of the legal representative.
-For entities under the control of the Superintendence of the Popular and Solidarity Economy, the administrative act that approved the legal personality of the association registered in the corresponding registry.
-Certified copy of the constitution of the company or entity under the control of the Superintendence of Popular and Solidarity Economy.
-Bank certificates corresponding to the financial movement of the last 6 months.
-The petitioner’s last income tax return that justifies 100% of the proposed investment or an affidavit by which the petitioner proves ownership of goods (equipment, machinery or any property related to the mining activity).
-In order to prove economic solvency, supporting documents may also be submitted from the parent company or from shareholders or partners who, in their own capacity, as natural persons, participate in the management, administration, control or capital of the applicant or interested legal entity. It can also be through consortium corporate figures.
Foreign legal entities
-Certificate of compliance with obligations and legal existence issued by the Superintendence of Companies, Securities and Insurance, in the case of branches of foreign companies or certificate of legal existence issued by the competent authority of the domicile of the foreign company, apostilled or legalized.
-Current appointment of the legal representative.
-For foreign legal entities under the control of the Superintendence of Companies, Securities and Insurance, special or general power of attorney that enables their representation, as well as the act of domiciliation.
-Certified copy of the public deed of incorporation of the company in the country of origin, in Spanish and the deed of domicile in Ecuador.
-Bank certificates corresponding to the financial movement of the last 6 months.
-The petitioner’s last income tax return that justifies 100% of the proposed investment or an affidavit by which the petitioner proves ownership of assets (equipment, machinery related to the mining activity).
-In order to prove economic solvency, supporting documents may also be submitted from the parent company or from shareholders or partners who, in their own capacity, as natural persons, participate in the management, administration, control or capital of the applicant or interested legal entity. It can also be through consortium corporate figures.
b. Acknowledgement of the request for a concession by the Undersecretary of Artisanal Mining and Small Mining and the appointment of an actuary.
c. The Undersecretariat of Artisanal Mining and Small Mining orders the technical, economic and legal review, documentary verification, and compliance with the requirements and capacities that will appear in a qualification form.
d. Evaluation of technical, economic and legal suitability with a minimum score required. It will be carried out by a multidisciplinary team for this purpose, considering the following parameters:
The petitioner is permitted to correct or complete the application within 10 days of the notice containing the observations detailed in the qualification form. If it is not corrected, the request will be archived.
Once the observations have been corrected, a new qualification form will be prepared within 10 days.
e. If 100 points are reached, the Undersecretariat of Artisanal Mining and Small Mining will request the Mining Regulation and Control Agency to issue the cadastral report of the requested area.
f. Once the area has been charted by the Mining Regulation and Control Agency, the Undersecretariat of Artisanal Mining and Small Mining will request the petitioner within a non-extendable period of 5 days for the following:
- Proof of payment for the processing fee of 5 unified basic remunerations regularized before the Sectoral Ministry.
- Affidavit of not being immersed in the disqualifications determined in Article 153 of the Constitution of the Republic and Article 20 of the Mining Law.
- Original graphing form, obtained from the Comprehensive Mining Management System with the signatures of the petitioner and the technical and legal advisors.
If the petitioner does not submit this information, the petition is filed and the area is uncharted.
h. With the charting of the area, the Undersecretary of Artisanal Mining and Small Mining will request the Mining Regulation and Control Agency to issue the cadastral report within 5 days.
If the cadastral report determines that the requested area does not comply with the mandatory cadastral
i. Finally, the registration of the mining title in the Mining Registry is made.
The petitioner may request the withdrawal of the petition from the Undersecretariat of Artisanal Mining and Small Mining, which will issue a reasoned administrative resolution ordering the archiving of the file and the elimination of the charted area.
- Special considerations of the petition process:
a. A limit of 300 hectares is established for each concession and a maximum production of 1000 tons in an open pit per day. However, it is possible to apply for more than one concession as long as each one does not exceed more than 300 hectares and does not form a single polygon.
b. The work and investment plan is mandatory and fundamental. It should primarily include the following:
- A minimum investment amount of $70,000.00 for the planning of mining activities, which must be in accordance with the requirements of economic solvency.
- Technical and operational description of the project: geology, methodology for exploration and exploitation and the estimated volume of exploitation with a schedule for the execution of planned amounts.
- Equipment and processes: machinery, equipment and supplies for the treatment of the material.
- Social and labor management: personnel, salaries and community relations.
- Safety and prevention: occupational health and contingency plans, and mine closure.
c. The documents that are delivered as enabling for the petition processes may be the following:
- Physical or digital original documents (electronic signature).
- Physical notarized copies, when there is no possibility of presenting original
- Physically or digitally apostilled documents, issued by a foreign government authority.
d. During the application procedures, the Sectoral Ministry may at any time order the territorial technical inspection within the required mining area, in conjunction with the Mining Regulation and Control Agency for the verification of compliance with the requirements.
e. The Mining Regulation and Control Agency has the power to carry out technical, legal and economic inspections of the mining concession to verify compliance with the Work and Investment Plan within the first year.
f. In the petition processes, the preferential right and the right of first option of the National Mining Company ENAMI EP will be observed and guaranteed.
For more information, please do not hesitate to contact us.
This bulletin contains a summary of legal developments of interest, and therefore cannot be considered as provided advice. If you have any questions, please contact the AVL Abogados team.
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[1] The resolution also requests to the Decentralized Autonomous Governments, that within a term of 5 days they provide to the Mining Regulation and Control Agency the technical and cadastral information of the concessions granted after the closure of the cadastre for review and legal validation for their possible incorporation into the National Mining Cadastre.
[2] The requirements to be reviewed are as follows:
- Bank certificates with financial movements for the last 6 months.
- Last income tax return that justifies the proposed investment.
- Sworn statement declaring ownership of the property.
- Supporting documents from the parent company or through the documentation of shareholders or partners may also be considered.
[3] The requirements to be reviewed are as follows:
- Certificate of compliance with obligations and legal existence.
- Appointment of the legal representative.
- Certified copy of the deed of incorporation.
- Certificate of compliance with tax obligations.
- Certificate of compliance with employer obligations.
