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 mining company Pacific Rim is confident that El Salvador will open its doors to exploit its gold deposits, but the tax barriers there have induced the company to look to Guatemala.
Guatemala "is open for business," said company president Thomas Shreke.
"At this point we are making our survey plan to Guatemala," said Shrek, who said he has a group of technicians to study the gold deposits that form part of a geological band that runs from Guatemala to Nicaragua.
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."
Pacific Rim, owner of the El Dorado gold mine, is at the center of an international dispute with the Salvadoran government. The company claims that the government owes it at least $77 million for delays suffered to the mining project, in violation of the Central American Free Trade Agreement (CAFTA-DR).
The International Center for Settlement of Investment Disputes dismissed a lawsuit filed by Commerce Group.
The lawsuit filed under CAFTA terms alleged that the Government, in 2006, without justification, revoked permits which had been awarded for the exploitation of mines in San Cristobal and San Sebastian and that a request made in 2008 to extend operating licenses at the San Sebastian and Nueva Esparta mines was denied.
A lawsuit by Pacific Rim Mining against the Salvadoran government must be resolved by the local jurisdiction, and not by that provided for under the DR-CAFTA.
An arbitration panel from the World Bank has found that the Canadian company Pacific Rim "does not have nor has had substantial operations in the United States" in order to take their case against the State of El Salvador to the dispute settlement mechanisms of DR-CAFTA.
Central America should take note that the Canadian government is moving away from environmental positions and promoting and defending the interests of its mining investment undertakings in other territories.
The Salvadoran government is attempting to gain support in Canada in its litigation against Oceana Gold, a company founded on Australian and Canadian capital which is trying to buy Pacific Rim, a company that sued El Salvador for $301 million because they were not granted permission to operate a gold mine in the north.
The Canadian mining company received authorization to operate the El Dorado mine in 2002, during the administration of President Francisco Flores, but his successor Antonio Saca announced - and followed through on - that he would not authorize any mining project, a position also held by the current President Mauricio Funes.
The Salvadoran government has filed a new set of objections after the
The document, presented as a response to the backing given by the International Center for Investment Dispute Resolution (CIADI), describes the way the company changed its nationality in order to take advantage of the benefits of the free trade agreement.
Armstrong Equipment, Inc. is an American based company that specializes in the distribution to Latin America of equipment and parts used in the mining sector, rock crushing and asphalt paving.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (305) 592 8361
Constructora Celaque is a leader when it comes to construction of civil projects and mining in Honduras with more than 15 years of experience.
Operates in Honduras and Honduras
Phone: (504) 2239 6794 - (504) 9905 7845