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Operations resuming at Lundin's Ecuadorian gold project as unrest eases

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Operations resuming at Lundin's Ecuadorian gold project as unrest eases

Operations at Lundin Gold Inc.'s Fruta del Norte gold project in Ecuador are returning to normal after the removal of road blockades that had prevented supplies and personnel from moving to and from the site.

The company said Oct. 14 that it is focused on ramping up activities and resuming commissioning activities as the project is now connected to the national power grid.

Lundin Gold had reduced activities at the site amid ongoing civil unrest in Ecuador due to a government austerity drive, which also disrupted operations at CRCC-Tongguan Investment Co. Ltd.'s Mirador copper mine. Lundin Gold still expects to reach its target of first gold production this quarter.

The government has canceled its austerity drive, which included nixing long-standing fuel subsidies. President Lenin Moreno also decreed that a commission of indigenous leaders be set up and that other social entities draw up new measures to lower the country's budget deficit as part of its IMF rescue package, the Associated Press reported.