Ecuador Constitutional Court Upholds Silvercorp El Domo Environmental Licence

• Constitutional Court unanimously rejected final legal challenge to El Domo Project environmental licence 
• Environmental consultation process validated across three judicial levels in Ecuador  
• Project received 98% support from local population within area of influence 
• First Ecuador mining project to comply with Escazú Agreement environmental standards 
• Construction activities continue despite ongoing protests from opposition groups

Silvercorp Metals Inc. (TSX/NYSE American: SVM) is a Canadian mining company that produces silver, gold, lead, and zinc. The company reports a history of profitability and focuses on four strategic areas: generating free cash flow from long-life mines, organic growth through exploration drilling, merger and acquisition activities, and commitment to responsible mining and environmental, social, and governance practices.

The company's operations span multiple jurisdictions with a portfolio of producing assets. Silvercorp's business model centres on maintaining operational mines while pursuing expansion opportunities through exploration and acquisition programmes.

Final Constitutional Court Decision

Ecuador's Constitutional Court issued a unanimous decision on 24 July 2025, rejecting the final legal challenge against the El Domo Project environmental licence. The ruling concluded judicial proceedings that began in June 2024 when individuals filed a constitutional protection action against the Ministry of Environment, Water, and Ecological Transition.

The case proceeded through three judicial levels. The local court in Las Naves Canton dismissed the initial action in July 2024, confirming ministry compliance with environmental consultation requirements. The provincial court rejected an appeal in November 2024, affirming the lower court decision. The Constitutional Court subsequently declined to admit an Extraordinary Protection Action in February 2025 and rejected a clarification motion in July 2025.

The court decisions confirmed that the ministry properly discharged environmental consultation obligations before issuing the project licence. Each judicial level examined the environmental consultation process and regulatory compliance framework, with all courts reaching consistent conclusions regarding procedural adherence.

Validation of Environmental Consultation

The El Domo Project conducted environmental consultation according to Escazú Agreement standards, making it the first mining project in Ecuador to align with this framework. The Escazú Agreement, a multilateral treaty adopted in March 2018, establishes standards for environmental information access, public participation, and justice mechanisms across Latin America and the Caribbean.

The consultation process resulted in 98% support from the population within the project's area of influence. This figure represents community response during the formal consultation period conducted as part of the environmental licensing process. The ministry evaluated this consultation data as part of its licence approval process.

Courts at local, provincial, and constitutional levels reviewed the consultation methodology and community engagement procedures. Each court concluded that consultation requirements were met according to applicable environmental regulations. The judicial review process examined both procedural compliance and substantive consultation outcomes.

Local Community Support

The Las Naves community provided 98% support for the El Domo Project during environmental consultation processes. The company states that the project is expected to bring socio-economic benefits to the local area. 

Community support levels contrast with opposition from anti-mining groups, which continue protest activities aimed at project disruption. Silvercorp reports that these activities have created safety concerns but have not materially impacted project advancement to date. The company describes these activities as unlawful and disruptive.

The difference between local community support and external opposition reflects varying stakeholder perspectives on mining development. Local residents participated in formal consultation processes, while opposition groups operate outside these regulatory frameworks. The company continues construction activities while addressing security concerns related to protest actions.

Conclusion

The Constitutional Court decision eliminates legal challenges to the El Domo Project environmental licence after review at three judicial levels. The ruling confirms regulatory compliance with Ecuador's environmental consultation requirements and Escazú Agreement standards. With legal proceedings concluded and 98% local community support recorded, the project continues construction phase activities. Silvercorp faces ongoing opposition from anti-mining groups but reports no material impact on project progress.

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