Another Mining Company Sues El Salvador

Commerce Group filed a lawsuit, alleging El Salvador denied operation permits.

Wednesday, September 2, 2009

The lawsuit was filed at the International Centre for Settlement of Investment Disputes (ICSID), which is part of the World Bank. Another mining company, Pacific Rim, sued the country in June.

From an article in "Commerce Group argues that on September 13th, 2006, the Government of El Salvador revoked, without justification or prior notice, the exploitation permits that had been granted for the mines in San Sebastián (La Unión) and San Cristóbal (San Miguel), for mining gold and silver. It adds that in 2008, the government denied a request to extend their exploitation permits for mining at Nuevo San Sebastián y Nueva Esparta (both within La Unión and Morazán)".

More on this topic

Another Favorable Ruling for El Salvador in Mining Dispute

March 2017

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:

Ruling Favors El Salvador in Mining Dispute

October 2016

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.

Mining Suit Against El Salvador Outside FTA

June 2012

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.

Mining Lawsuit Against El Salvador Dismissed

March 2011

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.

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