QUITO (Reuters) -Tens of thousands of residents and local leaders in Ecuador's central Azuay province took to the streets on Tuesday to demand the suspension of a mining project by Canada's Dundee Precious Metals, which they say will affect a vital water reserve.
The government of President Daniel Noboa had granted Dundee an environmental license to start building the Loma Larga gold mine there, but as community pressure mounted, the country's energy minister in August suspended the start of construction work until Dundee provides an environmental management plan.
Provincial authorities reject the project, saying it will affect the region's 3,200-hectare Quimsacocha reserve and its surrounding paramos - highland moors that act as giant sponges and supply the bulk of drinking water to major cities there.
Authorities estimated that over 90,000 people marched in the provincial capital of Cuenca on Tuesday, chanting "Hands off Quimsacocha!" and "Water is worth more than anything!"
"We want the national government to revoke the environmental license," Cuenca Mayor Cristian Zamora said. "The streets of Cuenca are roaring ... and they will have to listen to us."
Dundee declined to comment on the protesters' demands.
Despite Ecuador's significant gold and copper reserves, just two mines are operating in the country - projects owned by Canada's Lundin Gold and EcuaCorriente, which is held by a Chinese mining consortium.
Noboa, meanwhile, stepped back from the project, saying responsibility for what happens next lies with the local authorities.
"The municipality and prefecture must take responsibility," he said in a radio interview on Friday, saying if Dundee takes them to an arbitration court that would have to go.
"There is a very high probability (the project will not go ahead), but there is also a probability that there will be problems in the future."
Strong community opposition, environmental concerns and legal uncertainty in Ecuador have contributed to a relative lack of mining projects.
In Azuay, residents have rejected mining projects at the ballot box and courts have ruled in their favor to block mining projects in the area.
(Reporting by Alexandra Valencia; Writing by Sarah Morland; Editing by Richard Chang)
