Companies in the sector point to the favorable geological conditions for this activity in the country and advocate that the suspension of concessions which has been in effect since 2009 be lifted.
Monday, September 5, 2016
Companies engaged in exploration and mining activities support their argument citing the new ways in which the activity now takes place, differentiating the artisanal mining techniques which were used in the past from those used in modern mining.
Companies in the sector pointed out the advantages that El Salvador has for the development of the mining industry, but stressed the need for an adequate legal framework in order to revive the granting of concessions.
One example is OceanaGold, a company with which El Salvador "... has filed a complaint with the court at the International Centre for Settlement of Investment Disputes (ICSID), after Pacific Rim sued the country in 2009 ...Despite this, the company works in the Cabañas mine in San Isidro, through its subsidiary Minerales Torogoz. "
Elsalvador.com reports that Darren Klinck, executive vice president of OceanaGold,"... stated that they would like to build a partnership with local businesses and "for the Government of El Salvador to open a new pillar of economic development in the country. "But how can they work in the country when there is still no resolution from the ICSID and concessions have been frozen?"We must wait to see if there will be a way forward, in recent days we have seen the many opportunities that exist in Central and Latin America," said Klinck, making reference to the progress that the mining industry has had in Nicaragua."
The company Oceana Gold has paid the $8 million it owed because of the international arbitration case it lost against the Salvadoran state and has announced that it has no plans to continue mining activities in the country.
With the payment of $8 million plus interest, an end has been brought to the litigation that began years ago between Pacifi Rim, now Oceana Gold, and the Salvadoran state.
A new ruling by the International Center for Settlement of Investment Disputes requires the mining company OceanaGold to pay interest on the $8 million it owes to the Salvadoran State.
From a statement issued by the Comptroller General of the Republic:
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.
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.
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