The Costa Rican government predicts possible damages payable to Industrias Infinito if the gold mining contract is cancelled.
Costa Rica’s courts have indicated to the president that she has the legal authority to cancel the Mina Crucitas mining contract, provided the government assumes responsibility for the case by providing compensation.
The Canadian ambassador to Costa Rica has warned of the damage to the country's international reputation if the project is cancelled.
Neil Reeder, Canadian ambassador, indicated that his government can vouch for the environmental responsibility of Canadian mining companies. Despite the project being financed by the private sector, the Canadian government maintains a close interest in the project, he added.
The Supreme Court of Costa Rica has ordered the suspension of works at the Crucitas gold mine due to enviromental claims.
Infinito Gold Ltd, the company responable for the developmen of the mine, reported that the court had ordered them to stop works to clear the property while they review the case presented by a group of environmentalists.
The Canadian company had already started to clear the land last week, but had stopped the works until the court makes a decision. The court has not given a date for its final decision.
Infinito Gold is suing for $94 million lost due to violations of the agreement for the promotion and protection of investments between Costa Rica and Canada.
Industrias Infinito confirmed that its parent company, Infinito Gold, has filed a law suit against Costa Rica at the International Centre for Settlement of Investment Disputes (ICSID) seeking compensation as a result of their investments in the canceled mining project of Crucitas.
Taking into account the ruling of the Constitutional Court in favor of the gold mining project and the risk of a multi-million pound law suit, Chinchilla will not cancel the concession.
The Mina Crucitas operations, which are in the preparatory phase, remain suspended as a precaution pending the reversal of the Contentious-Administrative Tribunal ruling, which stopped the mine from operating in response to a complaint from an environmental organization.
In answering whether Costa Rica should compensate Industrias Infinito in the Crucitas mine case, the minister in charge of the issue said, "they shouldn't be paid or it should be minimal. "
In an article in Prensalibre.cr the Minister of Environment and Energy René Castro answered the question by saying "We believe that Costa Rica should not give any compensation to Industrias Infinito because there was never actually a concession."
The money that the State of Costa Rica will lose in the dispute over the failed concession of the Crucitas mine will come from taxpayer's pockets.
During the 20 year period of the soap opera that is Crucitas gold mine, none of the individuals who are involved in one way or another have suffered any financial loss and many, on the contrary, have seen an increase in their income and their bank accounts. They include presidents, former presidents, ministers, former ministers, judges and other public officials, who, regardless of the nature of their involvement in the matter, carried on receiving their salaries on time and carried on collecting their juicy pensions.
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