Dispute between Pacific Rim and El Salvador Continues

The court at the International Centre for Settlement of Investment Disputes (ICSID) has ruled in favor of the Canadian gold mining company and dismissed preliminary objections raised by El Salvador.

Tuesday, August 3, 2010

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).

In January the government filed a series of preliminary objections with the aim of getting the case thrown out but on 2 August the court found in favor of Pac Rim Cayman LLC (PacRim), a unit of Pacific Rim Mining Corp. The case continues.

"With this phase of the arbitration now completed, we hope to resume a mutually beneficial dialogue with the Government of El Salvador to resolve the impasse on the El Dorado project," Chief Executive Tom Shrake said in a statement, reported by Reuters.

More on this topic

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.

El Salvador Looks to Block Pacific Rim Law Suit

August 2010

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.

Pacific Rim sues El Salvador

December 2008

Pacific Rim, a company which was expecting to dig for gold at the El Dorado gold mine, announced its intention to sue El Salvador for not issuing the exploration and exploitation permits.

The company said that there is no legal basis for the denial of the permits, and that they will move to sue the country under the terms of the FTA between the US and CA-DR, known as CAFTA-DR.

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