A few days ago, on September 24, NASA announced that it managed to bring a sample of an asteroid to Earth that is expected to provide unique information about the origin of life and the formation of the solar system about 4.5 billion years ago.

It is the first time that the US space agency has managed to bring back a sample from an asteroid. The NASA mission, named Osiris-Rex, hopes to have collected 250 grams of debris from the Bennu asteroid that contains molecules dating back to the formation of the solar system.

These asteroids are debris from when the planets formed 4.5 billion years ago. They are like time capsules, equivalent to dinosaur fossils that allow us to know what was happening millions of years ago. “In this case, with our mission, we are traveling billions of years back in time,” NASA planetary scientist Lucas Paganini explained to the EFE agency.

Beyond the relevance of the news for scientific research into the history of life on our planet and the solar system. This fact constitutes an unquestionable step forward in the advancement of extraterrestrial mining exploration.

In this same space in MINERGIA, I have written about the initiatives that exist to develop space mining, from both, the governments and private enterprises, because we understand that earthly resources are limited and also because of the captivating idea of ​​providing us with minerals necessary for our modern lives without affecting our environment and nature. That idea, which seems like a fantasy similar to science fiction, is getting closer and closer and could become a reality in a period of around twenty years, which is barely a breath in relation to the lifespan of humanity.

“The Bennu asteroid is a celestial body approximately 500 meters in diameter – a little higher than the Empire State Building -, which is located in the asteroid belt between Mars and Jupiter,” reports the Mexico Minero website, and adds: “What makes it so special is its composition, as it contains essential minerals and materials for the space and terrestrial industry, Among those are precious metals, such as platinum and gold, as well as vital resources such as water and organic compounds.”

Asteroids and other space bodies like Bennu house massive amounts of critical minerals such as gold and platinum. In fact, the reserves of these metals that exist on our planet are of extraterrestrial origin. According to a scientific study, published in the journal Nature, the theory is confirmed that the gold we currently have on Earth comes from space, more specifically from meteorites that hit our planet 200 million years after its formation. During the Earth’s creation, molten iron sank into the interior of the planet and formed what is now the core. On its descent, it dragged down precious metals, such as gold and platinum.

But, Bennu also contains water, and this is probably the most valuable and important resource. Water (two hydrogen atoms bonded to one oxygen atom) can be used for drinking and can also be separated into its basic elements to obtain breathable air and fuel for human space vehicles. This type of news is very interesting because the biggest challenge of human activities in space is linked to the provision of water and fuel for missions, manned or unmanned.

Meanwhile, in Ecuador, a country rich in mining resources, we are still entangled in endless debates for and against mining; other countries have overcome this inert debate and are focused on finding alternative solutions to provide us with the minerals and water that are fundamental for the future of humanity.

For now, we should not worry because we do not have any options for space missions for extraterrestrial exploration to be launched from Ecuador. Perhaps there may be an interested entrepreneur, but, after a careful investigation, he will realize that it is impossible, not because of the complexity of such an adventure, but because his project would have to have an environmental license that, at the moment, cannot be obtained or because, even if it were possible, he would be the target of a protection action or request for a referendum promoted by anti-mining groups. As a result, in Ecuador, carrying out legal mining exploration is an impossible mission.

1. President Noboa has announced a referendum with several questions to improve the country’s security and economy. Along with others, there is question Nº 3, which reads as follows: Do you agree that, to eradicate illegal mining, the areas mentioned in Annex 6 should be declared territories of national interest to assess, on a one-off basis, the relevance of revoking mining concessions to guarantee the proper use of mineral resources and combat organized crime?

2. The question’s wording could be confusing; therefore, this document aims to clarify the scope of the question after reviewing Annex 6, which has been filed into the Constitutional Court for its assessment of constitutionality.

3. After reading the rationale for the question, Annex 6, it’s clear that the government is seeking an additional tool to combat illegal mining. It considers that such activity has repercussions on national security, the environment, and tax collection, among others. Apart from the problems that illegal mining activity brings, the government considers that it is “part of the chain of trafficking in arms, explosives, money laundering” and that it is a threat to national security. Annex 6 describes that authorities have found that many of these activities are carried out within existing mining concessions, and some illegal miners work with the complicity of the mining concessionaires and landowners.

4. Therefore, the question seeks for the state to revoke the concessionaires’ mining concessions that have become complicit in illegal mining following a process of investigation and sanction by the mining authorities. Annex 6 clarifies that such a process would be a “special simplified process”. The evaluation of the territories of “national interest” will be determined by the Energy and Non-Renewable Natural Resources Regulation and Control Agency (ARCERNNR), starting by declaring the following: Buenos Aires, San Lorenzo, Yutzupino, Chinapintza, etc. However, the application can be extended to any part of the territory.

5. From a legal point of view, the question ratifies the general principles already contained in the Constitution and laws of Ecuador. Under the principle of objective environmental liability, operators (concessionaires) are presumed to be responsible for damage and activities occurring within their mining concessions, and any third-party activity is presumed to have been authorized by the concessionaire unless it proves otherwise (presumption of environmental liability). The mining concessionaire could prove it did not authorize an illegal operator through a denounce or administrative relief action filed before to the mining authorities.

6. The current legislation already has a regulated process for declaring a mining concession’s caducity (revocation or extinction) due to environmental damage or illegal exploitation. However, in this case, Annex 6 clarifies that to instrument the revocation in the cases under this question, a “special simplified process” will be in place. Currently, the authority initiates an investigation process, either within territories of national interest or in any place where mining concessions exist, to determine if there have been exploitation, processing or commercialization activities. If the complaints or appeals proposed by the mining concessionaire are not provided, it will be understood that these are activities authorized by the titleholder of the mining area, and then the title will be revoked (caducity declaration). Although in the case of this particular question, a “special simplified process” will be, there are no material changes in the principles of application (due process, right of defense, the opportunity to provide evidence, etc.).

7. In sum, the consultation process in the referendum question does nothing to change what is already in the law to revoke mining concessions for illegal exploitation (caducity process). However, including the specific matter in the referendum raising the protection category of the industry to “national interest” sends a strong political message against illegal mining that benefits the legal and responsible industry.

© TobarZVS 

This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.

Industrial mining being an engine of Ecuador’s economy is an unquestionable fact. Likewise, there is no debate that responsible mining can be the main source of jobs and exports in the years to come for Ecuador. However, little has been said about the importance of mining in geopolitics and the country’s influence in the region and the world.

The race between countries to decarbonise the planet does not stop. In the interesting article published by the global firm White & Case , in 2023 clean energy received 70% more investment than fossil fuels. For the first time in the world solar energy alone will receive more new investment than oil, amounting to more than $1 billion per day. Every dollar of that new investment in turn requires extracting or recycling and refining more minerals. All clean energy solutions require metallic minerals and especially copper as we can see in the chart below.

Source: Executive summary – Toe Role of Critica! Minerals in Clean Energy Transitions – Analysis – IEA

The pandemic, the 2021 energy crisis, and the conflict in Ukraine have forced countries to diversify energy supplies and the concentration of fuel and energy supplying countries to avoid systemic risk to national security and global decarbonisation policy. Countries dependent on mineral exports are seizing the opportunity of limited supply in the face of rampant demand; gaining advantages and preferential treatment from mineral-consuming countries dedicated to industrial and technological purposes.

China remains the world’s largest producer, refiner, and consumer of metals, and Western countries are adopting energy security policies to protect them from the threat of a country that maintains market hegemony in rare earths and metals. Chile, for example, is beginning negotiations with the United States for a trade agreement on critical minerals that will undoubtedly elevate the South American country’s importance on the continent.

A fact that caught my attention from the presentation of the CEO of an Australian company is that 70% of the oil used for industrial purposes comes from 15,000 active wells around the world (USA, Venezuela, Saudi Arabia, Russia, etc.) while 70% of the copper used for industrial purposes in the world comes from six mines. This is confirmed by what has happened in the last year. The copper surplus originally foreseen for 2024 turned into a deficit due to interruptions in the production of two mines supplying the metal. This fact shows the excessive concentration of global copper production while the production of electric vehicles that demand large amounts of copper does not stop as can be seen in the following chart.

In the next ten years, Ecuador could add two or three more copper mines to the six that currently supply 70 per cent of the market, thereby increasing its influence and geopolitical importance exponentially.

Let’s dream. If Ecuador puts three copper mines into production in addition to the six that currently supplies 70% of the world’s industrial market, it would become part of the short list of five countries that supply one of the indispensable metals for the decarbonisation of the planet, which includes the production of electric vehicles, clean energy solutions, etc. It is evident that the international community, especially those countries at the forefront of decarbonisation, would give a different and preferential treatment to this small country and thus would be able to obtain advantages and preferential trade treatments for the benefit of all Ecuadorians. Ecuador’s geopolitical importance, if it manages to position itself as a world supplier of copper by developing its great potential and bringing advanced projects into production in the coming years, would also allow it to gain allies and financial backers in its fight to eradicate organised crime and mafias.

Finally, in the last 50 years, oil and gas have dominated the geopolitical competition for energy security. However, this is set to change radically as it is expected to be dominated by critical minerals and industrial supply chains in the next 50 years. Ecuador could come into its own in the next five decades.