Eight bodies found in an Azuay mine shaft as illegal gold rivals cocaine in funding armed groups.
Ecuador illegal mining is not just a headline — it is a daily reality that shapes safety, water, and investment. Police exhumed eight dismembered bodies from an illegal gold mine in Pucará, Azuay province, on Sunday, a grim sign of how deeply this trade has penetrated criminal economies. The victims, buried about two meters deep with hands tied, show that gold now rivals cocaine as a revenue engine for armed groups. For residents and investors, this is not a distant story. It shapes security in mining towns, poisons rivers, and determines whether legal projects can operate safely.
Key Facts
- Mass grave — Police found eight dismembered bodies on 9 August in two graves inside an illegal mine in Pucará, Azuay province.
- US$1 billion — Illegal gold profits in Ecuador could reach US$1 billion a year, according to officials cited by the FACT Coalition.
- 652 sites — Ecuador’s Organized Crime Observatory counted over 652 illegal mining points by 2024, up from fewer than 60 before 2018.
- US$4 billion — The Defence Ministry says illegal mining caused over US$4 billion in losses to criminal economies from January to July 2026.
- Los Choneros — The gang could earn US$1 million a month from illegal gold, according to a reported official estimate.
- 9 protected areas — Illegal mining operates in at least nine of Ecuador’s 71 protected zones, seven of them in the Amazon.
- Rivers poisoned — The Napo, Calera, and Amarillo rivers show contamination above legal limits, the government confirmed.
Ecuador Illegal Mining: A Billion-Dollar Criminal Economy
Illegal gold in Ecuador generates an estimated US$800 million to US$1.3 billion a year, according to the country’s security policy framework. Other reporting, citing the FACT Coalition, puts the figure at up to US$1 billion annually.
The Defence Ministry said on 4 August that operations from January to July 2026 caused about US$20 billion in losses to criminal economies. That includes more than US$4 billion from illegal mining and more than US$14 billion from narcotics.
The Organized Crime Observatory counted fewer than 60 illegal mining points before 2018. By 2024, that number had jumped to over 652, showing how rapidly the sector has expanded.
Azuay and the Amazon: Where the Gold Flows
Azuay province is the epicentre, with pressure points in Camilo Ponce Enríquez, Sígsig, Pucará, and Santa Isabel. Camilo Ponce Enríquez is a key hub because it combines extraction, artisanal work, and processing plants.
In the Amazon, illegal mining operates in at least nine of Ecuador’s 71 protected areas. Seven of those are in the rainforest region.
The Napo, Calera, and Amarillo rivers show contamination above legal limits, the government found. The Santa Bárbara River basin in Azuay is also under pressure.
More than 500 hectares in the Yutzupino area were impacted by mining between January 2017 and December 2024. This damage adds to the environmental toll in the region.
Armed Groups and the Gold Supply Chain
Criminal organisations have penetrated the gold supply chain from mine sites to processing plants to smuggling routes, authorities say. Groups now control unauthorised extraction sites, processing facilities, and smuggling networks.
Los Lobos are a central trafficking partner of Mexico’s CJNG, with ties to European drug traffickers and FARC dissident factions, InSight Crime reports. A Los Lobos-financing network was targeted in Azuay and El Oro, with one suspect moving about US$3.2 million between 2023 and 2025.
Los Choneros could receive US$1 million per month from illegal gold, according to a reported official estimate. This shows how gold has become a parallel income stream to cocaine for major gangs.
Noboa’s Crackdown and the Investment Dilemma
President Daniel Noboa’s government has elevated illegal gold mining to a national security threat. The Plan Nacional de Seguridad Integral 2025–2029 treats it as a priority and calls for coordinated action by the armed forces, police, and mining regulators.
Operations have seized machinery, explosives, fuel, and ore, and closed storage centres. In February 2026, Environment Minister Inés Manzano suspended mining in Napo and restricted processing plants in El Oro and Loja over contamination concerns.
Noboa says the mining cadastre will reopen progressively from late 2026 to restore order and attract investment. Critics warn the push to accelerate extractive investment risks weaker environmental safeguards and insufficient consultation.
What This Means for You
If you live in or invest in Latin America, this is a warning about operating environment risk. Legal mining projects face competition from criminal operators who undercut costs and corrupt officials.
The environmental damage also raises long-term liabilities. Contaminated rivers affect water supplies and agriculture, which can hurt property values and community relations.
For investors, the reopening of the cadastre offers opportunity, but due diligence on security and environmental compliance is now essential. The line between legal and illegal mining is dangerously thin in Ecuador.
More: Ecuador news in English, every day from The Rio Times.
Sources: Ecuador’s National Police; Primicias; El Universo; Reuters
Frequently Asked Questions
What happened in Pucará, Azuay province?
Police found eight dismembered bodies on 9 August in two mass graves inside an illegal gold mine. The victims were buried about two meters deep with hands tied, with injuries including dismemberment and decapitation.
How much money does Ecuador illegal mining generate?
Estimates range from US$800 million to US$1.3 billion a year. The Defence Ministry says illegal mining caused over US$4 billion in losses to criminal economies from January to July 2026.
Which armed groups are involved in illegal mining?
Los Choneros and Los Lobos are the main groups. Los Choneros could earn US$1 million a month from gold, while Los Lobos partner with Mexico’s CJNG and European traffickers.
What is President Noboa doing about illegal mining?
Noboa has declared illegal mining a national security threat. His government is seizing machinery, suspending mining in contaminated areas, and plans to reopen the mining cadastre from late 2026 to attract legal investment.
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