El Salvador Wins International Arbitration Against Mining Company

The U.S. Commerce Group had sued the Salvadoran government for $100 million, over the revocation of environmental permits for a mining project.

Tuesday, August 13, 2013

Attorney general Luis Antonio Martinez announced that the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank rejected the annulment petition presented by the mining company against a decision favorable to El Salvador which the court issued in 2011.

According to the official, El Salvador won the case in March 2011, but in July of that year, Commerce Group Corp. filed an annulment petition which has now been resolved in favor of the country. ICSID is expected to "order the company to pay court costs" totaling $1.4 million.

"... The mining company filed a suit against El Salvador under the Free Trade Agreement with Central America and the Dominican Republic, known as CAFTA-DR" reported Elmundo.com.sv.

"... On March 15, 2011, the ICSID, which is an independent court of arbitration, rejected the claim by Commerce Group in the first instance on procedural grounds."

More on this topic

Million-dollar Sue Against Mine Suspension

December 2018

Representatives of the El Tambor mine, located in San José del Golfo and San Pedro Ayampuc, filed a $300 million lawsuit against the State of Guatemala.

The arbitration lawsuit was filed by the Americans Daniel W. Kappes, Kappes, Cassidy & Associates, which was registered by the International Centre for Settlement of Investment Disputes (ICSID) last December 11th.

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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