Solaris Resources (TSX:SLS) (NYSEAmerican:SLSR) has submitted an Environmental Impact Assessment (EIA) to Ecuador’s Ministry of Environment, Water, and Ecological Transition (MAATE) as part of its ongoing efforts to develop the Warintza Project in southeastern Ecuador. The EIA, comprising over 3,000 pages, reflects more than three and a half years of work, including community dialogue, environmental monitoring, and data collection. Solaris followed Ecuadorian regulations, and international best practices, and adhered to the Equator Principles framework and Performance Standards on Environmental and Social Sustainability from the International Finance Corporation.
This assessment is not Solaris’ first step in the permitting process for Warintza. The company had previously completed community consultations and submitted another EIA, which resulted in the granting of an environmental license in 2023. This enabled Solaris to advance exploration and develop infrastructure on the project site. Since then, the company has invested over $170 million in the project, with a substantial portion of procurement sourced locally. Currently, the project provides over 500 jobs, making it one of the most significant employers in the region.
Mr. Antonio Goncalves, Minister of Energy and Mines, commented in a press release: “The steady progress of the Warintza Project is positive for Ecuador. The Project is advancing in compliance with all legal regulations and will soon generate thousands of jobs and major economic growth in the Province of Morona Santiago. The administration of President Daniel Noboa supports this type of mining Project – one that has the support of the communities in its direct area of influence and is designed to meet high social, environmental, and technical standards.”
Mr. Sixto Cóndor, Governor of Morona Santiago, also commented: “Warintza is a project that will bring great opportunities and impetus to the development of the province. Like the Mirador project, which I recently visited, and its positive impacts in Zamora-Chinchipe, Warintza will be an engine for growth in Morona Santiago, with more generation of local employment sources, revitalization of the economy, social benefits, support for entrepreneurship, businesses and local suppliers. With Warintza, we will have a better province, with greater wealth to be distributed and better opportunities. We are ready to move forward.”
Mr. Antonio Castillo, Mayor of Limón Indanza, commented: “The people of Limón Indanza have benefited and will continue to benefit significantly through the creation of local employment and opportunities for the canton’s suppliers with the Warintza Project. The communities of Warints and Yawi decided to sign an agreement with the Company, through the Strategic Alliance, for the advancement of the Project and, as a Municipality, we respect and support this decision to work together.”
Mr. Javier Toro, Chief Operating Officer of Solaris, also commented: “The submission of the EIA and commencement of permitting for construction is a major milestone for the Warintza Project. We are very grateful to all our supporters, and in particular to our host communities and the Advisory Board of the Strategic Alliance of the Warintza Project who have been integral to the socialization of this EIA, the Mayor of Limón Indanza, the Governor of the Province of Morona Santiago, and the diligent professionals at MAATE.”
ESSAM Cía. Ltda., a well-regarded environmental consulting firm in Ecuador, prepared the EIA for Warintza. The firm has previously worked on other major mining projects in the country, such as the Mirador copper mine and the Fruta del Norte gold mine. ESSAM collaborated with international experts, including Knight Piésold Consulting, which provided expertise in areas such as waste management and water design, and Ausenco, which contributed to metallurgical studies and plant design.
With the submission of the EIA, Solaris is preparing to draw on the second tranche of a $15 million credit facility. This funding comes as part of an Offtake Credit Facility that the company had previously announced. Solaris currently has $84 million in available liquidity. The company expects to receive the next update on the project’s permitting process when the technical approval of the EIA is anticipated in the first half of 2025.
In addition to progressing the Warintza Project, Solaris has begun taking steps to move some of its operations to Ecuador. The company plans to transition its head office to Quito, Ecuador’s capital, where some of its senior management will be based. Solaris is evaluating further steps toward aligning its operations with local stakeholders and regulators as the project moves into its permitting phase. The company has indicated that this move is not expected to cause any adverse tax impacts or require changes to its stock exchange listings.
The Warintza Project, which has seen significant investment and progress, represents one of the few large-scale mining operations in Ecuador. It is important to the local economy, providing formal employment opportunities in a region with few alternatives. The submission of the EIA marks a major milestone for Solaris, with the company now awaiting government approvals to advance the project further.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
I specialize in the mining industry, focusing on top global mining stocks. My reporting covers the latest industry news, company/project developments, and profiles of key players. Beyond my professional pursuits, I have a keen interest in global business and a love for travel.
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