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 Center for Settlement of Investment Disputes (ICSID) has reported that the mining company Oceana Gold (formerly Pacific Rim) must pay interest to the State of El Salvador on the legal costs owed by the aforementioned transnational.
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.
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.
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.
On August 16 and 17 industry representatives from around the globe will be taking part in business conferences and lectures on the role of mineral resources and the impact of the activity on the economy.
The II International Mining Congress is being organized by the Mining Chamber of Nicaragua and will be held on August 16 and 17 in Managua.
The conference will include business conferences, panels and lectures on the economic and social impact of mining on communities; the role of metallic and non-metallic mineral resources in developing countries and environmental challenges in modern mining.
In Guatemala academics are trying to halt the mining industry while new rules for the sector are studied, instead of making concrete proposals to correct what needs to be corrected.
EDITORIAL
An academic consortium is proposing that the State of Guatemala turn its back on an industry that generates employment and income and suspend the granting of mining concessions in the country.
On November 12nd and 13th Panama City Latin American mining companies will be gathering together in Panama City to address the challenges and opportunities for the industry in Central America.
The Mining Chamber of Panama is organizing the event, in conjunction with the Latin American Mining Organization (Olami), called the First International Mining Congress, which will focus on the challenges and opportunities of mining activities in Central America.
Conflicts over environmental protection and excessive bureaucracy in the process of granting concessions are the factors that limit the great mining potential in the region.
The mining sector in Central America represents great potential for investment and business, however, it has so far contributed only 0.75% to the Gross Domestic Product (GDP), averaged from the six countries in the region, between 2008 and 2012.
The presidential hopeful Sanchez Cerén, from the ruling FMLN party, reaffirmed his opposition to the exploitation of metal mining in the country.
The presidential candidate of the Farabundo Marti National Liberation Front party (FMLN), Salvador Sanchez Ceren, says a new government will not allow the exploitation of metal mining in the country, believing that it is "an risk for the population."
The money that the State of Costa Rica will lose in the dispute over the failed concession of the Crucitas mine will come from taxpayer's pockets.
Editorial
During the 20 year period of the soap opera that is Crucitas gold mine, none of the individuals who are involved in one way or another have suffered any financial loss and many, on the contrary, have seen an increase in their income and their bank accounts.
Representatives of companies in the sector and investors will meet from 2 to 5 March in Canada in order to take part in the business conference.
The Prospectors and Developers Association of Canada (PDCA) has organized since 1932 the Annual Mining Convention which is attended by companies involved in the industry of mining exploration and exploitation in various countries.
The U.S. Commerce Group had sued the Salvadoran government for $100 million, over the revocation of environmental permits for a mining project.
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.
Arbitration between the Salvadoran government and the mining company Pacific Rim is in its final stages at the International Centre for Settlement of Investment Disputes.
The Canadian mining company received authorization to operate the El Dorado mine in 2002, during the administration of President Francisco Flores, but his successor Antonio Saca announced - and followed through on - that he would not authorize any mining project, a position also held by the current President Mauricio Funes.
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.
There are 26 mining projects between applications for exploration and exploitation which have not been approved.
Applications for mining comprise nearly 5% of the country's territory.
Laprensagrafica.com says, "companies have found a vein of gold that begins in Mexico and goes through all the countries of Central America and ends in Costa Rica."
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