Ecuador Seals Record $3.2B Sustainable Mining Deal

Key Takeaway

• Compass Minerals commits to conservation efforts at its Ogden facility, ensuring extraction aligns with Great Salt Lake levels for regional well-being.
• SolGold signs a $3.2 billion agreement with Ecuador, marking the country's largest mining investment, emphasizing responsible mining practices.
• The deal reflects growing international and local support for sustainable mining initiatives, involving major stakeholders like BHP Group and Newmont.

Compass Minerals' Lake Agreement

Compass Minerals, operating its Ogden facility for over 50 years on the Great Salt Lake, produces sulfate of potash, salt, and magnesium chloride, employing nearly 400 locals. The company actively participates in lake ecosystem health through policy and advisory groups, with the FFSL managing Utah's sovereign lands. President and CEO Edward C. Dowling Jr. emphasized the importance of a healthy Great Salt Lake for the region's environmental and economic well-being. He stated, "This agreement provides a framework where critical minerals can be extracted when the lake is at appropriate levels, and water is conserved as lake levels decline."

SolGold's Historic Investment in Ecuador

SolGold signed a declaration in Toronto at the PDAC convention with Ecuador’s Minister of Production, committing $3.2 billion in addition to the existing $311 million investment under the current IPA. This marks the largest mining investment in Ecuador's history. CEO and President of SolGold Ecuador Scott Caldwell highlighted the significance of the Complementary Investment Protection Agreement, stating, "The agreement reinforces protections for our key investment in Ecuador and deepens our relationship with the Ecuadorian State." The presence of President Noboa at the convention underscored the administration's support for responsible mining in Ecuador.

Ownership Structure of SolGold

Major companies like BHP Group Limited, Newmont, and Jianxi collectively own significant stakes in SolGold, with BHP and Newmont holding around 20% each and Jianxi around 6%.

Management Quotes

• Edward C. Dowling Jr., President and CEO of Compass Minerals:

  "We recognize that a healthy Great Salt Lake is essential to both the environmental and economic well-being of the region... This agreement provides a framework where critical minerals can be extracted when the lake is at appropriate levels, and water is conserved as lake levels decline."

• Scott Caldwell, CEO and President of SolGold Ecuador:

  "The Complementary Investment Protection Agreement not only reinforces the protections for our key investment in Ecuador but also symbolizes a deepening of our relationship with the Ecuadorian State. President Noboa’s attendance and insightful speech at the PDAC convention were warmly welcomed by the mining community and underscore the significant support of his administration for responsible mining in Ecuador."