Ecuador Constitutional Court Upholds Silvercorp El Domo Environmental Licence

Ecuador’s highest court has unanimously rejected the final legal challenge against the environmental license for the El Domo mining project, delivering a significant victory for Canadian mining company Silvercorp Metals Inc. after a lengthy judicial process spanning multiple court levels.

The Constitutional Court of Ecuador issued its unanimous decision on July 24, 2025, ending legal proceedings that began in June 2024 when opponents filed a constitutional protection action against the Ministry of Environment, Water, and Ecological Transition regarding the project’s environmental permitting.

The case had worked its way through Ecuador’s judicial system over the past year, with consistent rulings at each level affirming the legality of the environmental consultation process. The initial action was dismissed by a local court in Las Naves Canton in July 2024, followed by a provincial court’s rejection of an appeal in November. The Constitutional Court declined to admit an Extraordinary Protection Action in February 2025 before rejecting a final clarification motion this month.

The court decisions validated that ministry officials had properly fulfilled environmental consultation obligations prior to issuing the project license. Each judicial review examined both the procedural compliance and the substantive outcomes of the consultation process.

The El Domo Project has made history as Ecuador’s first mining development to align with the Escazú Agreement standards. This multilateral environmental treaty, adopted in March 2018, establishes rigorous requirements for public access to environmental information, participation in decision-making processes, and environmental justice mechanisms throughout Latin America and the Caribbean region.

According to Silvercorp, the formal consultation process demonstrated overwhelming local support, with 98% of the population within the project’s area of influence expressing approval. This high level of community backing was a key factor considered by the ministry during its license approval process and was subsequently validated by all three judicial levels.

Silvercorp Metals Inc., listed on both the Toronto Stock Exchange and NYSE American (SVM), operates as a Canadian mining company producing silver, gold, lead, and zinc. The company has positioned itself strategically in the market, focusing on generating free cash flow from long-life mines, organic growth through exploration, merger and acquisition activities, and responsible mining practices.

Despite the legal victory and reported strong local support, the El Domo Project continues to face opposition from anti-mining activist groups. Silvercorp has characterized these ongoing protest activities as unlawful and disruptive, creating safety concerns at the project site. However, the company maintains that these actions have not materially impacted construction progress to date.

The contrast between formal community support and external opposition highlights the complex stakeholder dynamics often surrounding mining development in Ecuador. While local residents participated in the regulated consultation frameworks, opposition groups have continued their activities outside these official channels.

With all legal challenges now resolved after extensive judicial review, Silvercorp appears positioned to advance the El Domo Project through its construction phase. The comprehensive validation of the environmental consultation process across multiple court levels represents a significant precedent for mining projects in Ecuador, particularly regarding the implementation of Escazú Agreement standards.

The company’s ability to navigate Ecuador’s regulatory framework while maintaining reported high levels of local support may provide a template for resource development in a country that continues to balance economic opportunities from mining with environmental and social considerations.