At a press conference, the claimants, who denied being employees of Pacific Rim, the Canadian mining company which is mainly affected by the presidential decision, indicated that operation of the El Dorado mine area would bring the jobs needed to alleviate the extreme poverty of local inhabitants.
Referring to the environmental degradation that would result from the operation of the mine, Juan Isidro Hernandez of ACOAGUA, said: "If they use the technology they have told us that they will use and they abide by the law, it will help. We are concerned. We are experiencing a global economic crisis and we must create jobs. The situation is getting tight for us and we must not squander this opportunity which would mean 600 direct jobs (in mining)."
Pacific Rim interposed an arbitrage against El Salvador, process that started on June 15.
The arbitration was interposed by Pacific Rim on the grounds that the country did not grant permission for the start of operations of El Dorado, a gold extraction project located in the Cabañas department.
The President of the Republic declared that he will not authorize mining exploration permits for the company Pacific Rim.
In an article in Laprensagrafica.com, Keny López Piche writes: “While Elías Antonio Saca is in the presidency, he will not authorize not even one permit (for mining exploration), not even environmental permits, that are previous to the ones granted by the Ministry of Economy,” declared the executive in a phone call made to a catholic radio station that at the time was transmitting a program regarding the consequences of mining in the country."
The International Centre for Settlement of Investment Disputes has ruled in favor of El Salvador in the dispute with the mining company OceanaGold, owner of the El Dorado gold mine.
From a press release by OceanaGold Corporation:
(MELBOURNE) OceanaGold Corporation (TSX/ASX/NZX: OGC) (the “Company”) has been advised that the arbitration tribunal constituted by the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) has found in favour of the Government of El Salvador (the “Government”) in its dispute with an OceanaGold indirect subsidiary company, Pac Rim Cayman LLC. ICSID granted an award of US$8 million to the Government of El Salvador to cover its legal fees and costs.
Receive more news about Mining & Geology
Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.