Jiangxi Copper Finalizes SolGold Acquisition, Expanding China’s Hold on Ecuadorian Copper Projects

The takeover was formally approved by a UK court on March 2 as part of JCC’s offer valued at approximately €867 million, according to a statement about the transaction. Two days later, on March 4, the acquisition was officially registered, consolidating JCC’s control over SolGold and its flagship Cascabel project, according to a statement outlining the completion of the deal.

Industry observers say the transaction demonstrates how Chinese mining firms often enter projects after early exploration phases have reduced geological uncertainty. The strategy allows companies with significant financial resources to acquire deposits that have already been confirmed as high potential.

SolGold’s shareholder base previously included major global mining companies such as BHP and Newmont, reflecting the scale and perceived value of the Cascabel project, according to a statement regarding the company’s ownership structure prior to the acquisition.

With the deal finalized, China now controls Cascabel while also maintaining operations at the Mirador mine, the only large-scale copper mine currently producing in Ecuador. Chinese interests also hold the Panantza-San Carlos project, which has an estimated preliminary investment of roughly $3 billion, according to a statement describing China’s mining assets in the country.

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The expansion of Chinese investment signals a continuing trend in Ecuador’s mining sector. Analysts note that exploration companies frequently identify major deposits but do not always proceed to construction due to financial, regulatory, or social challenges.

“In Ecuador, the companies that take on the exploration risk do not usually move forward, for different reasons, to the construction stage, and the Chinese companies have sufficient financial muscle to acquire the deposits once the geological risk has disappeared, even though social, environmental, political, or legal risks may persist,” said Jorge Barreno, former manager of INV Metals in Ecuador.

Cascabel is widely considered one of Ecuador’s most significant undeveloped mining projects. SolGold previously outlined a two-stage development plan for the site, beginning with an open-pit operation targeting near-surface resources before transitioning to underground block caving to access deeper mineralization.

“Open-pit mining will clearly make it easier to generate cash flow for the development of the project in its deeper section. Accessing mineral resources more quickly, in two or three years, facilitates and makes the project more viable,” Barreno said.

The project is located in Lita, in Ecuador’s northern province of Imbabura, and carries an estimated total investment of $4.2 billion. Of that amount, about $1.5 billion is allocated to the initial development phase, according to a statement referencing the project’s planning framework.

A pre-feasibility study indicates that proven and probable reserves at Cascabel total around 540 million tonnes, representing about 18 percent of the total resource identified so far, according to a statement summarizing the project’s geological estimates.

With Cascabel now under its control alongside Mirador and Panantza-San Carlos, China is strengthening its position in Ecuador’s copper sector and securing long-term access to key mineral resources that are increasingly important for global industrial supply chains.

Source: BN Americas