On January 10, 1996, the Supreme Court of Justice ruled on the “Cumbaratza” case, issuing a judgment regarding the ownership of 30,000 hectares of mining land in Zamora Chinchipe. The Court ordered the reversion of these mining assets to the Ecuadorian State due to legal breaches committed by the mining titleholder, thereby ensuring compliance with legal regulations and the protection of natural resources.
On February 26, 2025, through Agreement No. MEM-MEM-2025-0006-AM (hereinafter the “Agreement”), it was resolved that, with the issuance of the cassation ruling by the Supreme Court of Justice on January 10, 1996, Instance No. 9/96 of January 10, 1996, published in Official Register No. 918 on April 3, 1996, the Ministry of Energy and Mines and all institutions under its jurisdiction must respect the mining titles granted in accordance with the current Mining Law. Given that this ruling has the force of res judicata, failing to comply would undermine legal certainty and predictability at multiple levels—not only for citizens but also for various State institutions, mining concessionaires, their workers, and could even lead to unforeseeable consequences for nature-.
The Agreement establishes the following resolutions:
The rights of the Ecuadorian State over the mining area formerly known as “Cumbaratza” are declared inalienable, in accordance with the ruling and the institutional positions adopted by the Office of the Attorney General and the Ministry of Energy and Mines, defending the interests and legitimacy of said ruling.
The Mining Regulation and Control Agency (ARCOM) is ordered to comply with the provisions of the 1996 cassation ruling to ensure its proper enforcement in accordance with the Mining Law.
The Mining Registry Specialist at the Zamora Chinchipe District Directorate of ARCOM must annul any registrations that contradict said ruling and the restrictions recorded in the Mining Registry.
The removal of the graphical representation of the areas belonging to Empresa Minera Cumbaratza S.A. within the 30,000-hectare polygon is mandated.
It is declared that any rulings issued after the 1996 cassation ruling are unenforceable, and mining titleholders in the areas of Nambija, San Carlos de las Minas, Cumbaratza, and Zumbi shall maintain their rights in force according to the terms of each mining title.
This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.