LAW: El Salvador becomes first country to ban metal mining

SAN SALVADOR – Legislators in Central America’s smallest nation have taken the unprecedented step of passing a law that bans all metal mining in that country. The final vote was unanimous: 69 in favour, none opposed. The ban does not apply to quarries, collieries, salt and other non-metallic mines. The lawmakers were responding to widespread anti-mining protestors determined to prevent environmental degradation in the country. [caption id="attachment_1003717894" align="alignright" width="300"] There is a promising gold belt in El Salvador, but recent legislation bans all metal mining in the country.[/caption] The new law comes after a long-simmering dispute with a Canadian junior. The company’s application for mining permits was turned down in 2005, and Pac Rim Cayman LLC sued in 2010 for US$314 million in compensation for the loss of expected profits. The dispute worked its way up the World Bank arbitration panel that ruled in favour of the government, saying Pac Rim did not meet the legal requirements to obtain the permits. Read a summary of the arbitration panel’s decision at http://isdsblog.com/2016/11/15/case-summary-pac-rim-cayman-llc-v-el-savador/.