Request for Reconsideration of Gold Mine Denial in El Salvador

Community development associations in the region of El Dorado requested President Saca to reconsider his decision not to allow the exploration of precious metals.

Monday, March 2, 2009

At a press conference, the claimants, who denied being employees of Pacific Rim, the Canadian mining company which is mainly affected by the presidential decision, indicated that operation of the El Dorado mine area would bring the jobs needed to alleviate the extreme poverty of local inhabitants.

Referring to the environmental degradation that would result from the operation of the mine, Juan Isidro Hernandez of ACOAGUA, said: "If they use the technology they have told us that they will use and they abide by the law, it will help. We are concerned. We are experiencing a global economic crisis and we must create jobs. The situation is getting tight for us and we must not squander this opportunity which would mean 600 direct jobs (in mining)."

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.

Arbitration Between Mining Company and El Salvador

July 2009

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.

No to Mining in El Salvador

February 2009

The President of the Republic declared that he will not authorize mining exploration permits for the company Pacific Rim.

In an article in, 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."

Communities halt gold grab

October 2008

Extractive firms struggling to gain licenses in Central America should do more to show what benefits mining has for local communities.

El Salvador can little afford to turn away investors. Tax burdens have been lifted and subsidies introduced precisely to attract foreign companies.

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