Mining in El Salvador

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Mining in El Salvador was once utilized to extract gold and other minerals from beneath the surface, but has generally been halted due to policy changes in the last two decades.

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Mining expanded in scope from artisanal mining to industrial mining at a mine in San Sebastián in the 1970s [ citation needed ]. Mining activity ceased during the Salvadoran Civil War. After the war, the country's right-wing government proposed designated mining zones and issued exploration licences to American, Australian, and Canadian companies[ citation needed ]. The plan was met with opposition from many local community and community leaders, who successfully blocked exploration in Chalatenango in 2005 [ citation needed ].

Canadian company, Pacific Rim Mining Corporation obtained a permit to explore the El Dorado gold mine in 2002, but were denied a license to mine in 2008, following local opposition [ citation needed ]. This led to an infamous lawsuit between the company and the Salvadorian government.

Mining for metal was banned in 2017, following years of social unrest and opposition from the local community. [1]

History

Artisanal mining has occurred in El Salvador, including at the San Sebastian Gold Mine that opened in 1904. [2] Mining became a national significant economic activity in the 1970s when Waukesha, Wisconsin-based company the Commerce Group Corp industrialised the mine. The industrialisation led to the cyanide, arsenic, and mercury poisoning of the San Sebastián River. Mining in El Salvador was halted by the Salvadoran Civil War. [3]

After the civil war, the Nationalist Republican Alliance came into power, and in the subsequent years developed new economic reforms in order to attract foreign investment [1] . These reforms included less taxes and more protection legally for foreign companies looking to invest in the profitable landscape.

In 2002, Canadian company [4] Pacific Rim Mining Corporation obtained a license to explore El Dorado gold mine [5] but were denied a license to mine in 2008. [6] The mine had been in operation, according to Pacific Rim Mining Corporation's parent company OceanaGold, from 1948 to 1953. [7]

In 2005, Canadian company Au Martinique Silver began prospecting in Chalatenango, despite objections from the majority of community leaders, who with support from U.S. activist organization the Madison Arcatao Sister City Project successfully halted the project [3] . In this same year, the National Roundtable Against Metal Mining (also known as "La Mesa") was formed by local organizations and community activists, acting as a figurehead for the anti-mining movement [8] .

A "Week Against Mining" was held in June 2006 across the country in order to protest extractive mining practices, as well as educate the population about the potential risks of allowing such projects to take place in El Salvador [9] . This shifted the majority opinion of the people within the country into a dislike of the idea of mining practices [9] .

Between November 2007 and March 2009, the left-wing Farabundo Martí National Liberation Front (FMLN) launched their presidential campaign with then-journalist Mauricio Funes as their frontrunner and opposition to mining on their agenda. [1] After Funes won the presidency and served for 5 years in this position, a shift towards anti-mining opinions and legislation occurred. [1]

Metal mining was officially banned in 2017 in El Salvador, [10] following a campaign by activists, local organizations, community members, and the catholic church [11] [12] . Despite the ban, artisanal mining continues.

The government agency General Directorate of Energy, Hydrocarbons and Mines was formed in October 2021. [10] The arrest of anti-mining activists, amidst allegation of a 1989 murder [13] during the Salvadoran Civil War, prompted public speculation that Nayib Bukele's government may lift the ban. [14] Antonio Pacheco, the director of ADES was among those arrested. [10]

At the time, El Salvador was in financial troubles, following a failed crypto currency scheme. [12]

Environmental Concerns and Conflicts

El Salvador is a small nation, densely populated and very vulnerable to the impacts of climate change. [14] The Lempa River is an integral water resource for the nation, and has been affected by both resource depletion and contamination, [8] affecting the livelihoods of those dependant on the river.

Local opposition to mineral mining is derived from the effects on natural resources such as water from the Lempa River and the contribution to overall ecosystem degradation in the region. [8] [15] According to a 2011 report by the United States Agency for International Development, El Salvador has been deforested by 85% since the 1960s, and approximately 90% of surface water is polluted. [15]

The Pacific Rim Mining Corporation enacted a lawsuit against the Salvadorian government in 2009 due to their denial of the company's mining permit and lack of mining concession. [16] In 2016, the company lost this suit by a ruling from the International Centre for Settlement of Investment Disputes (ICSID). [16]

The Association of Economic and Social Development (ADES) organization works to highlight water pollution issues in El Salvador. [10]

See also

Related Research Articles

<span class="mw-page-title-main">Economy of El Salvador</span>

The economy of El Salvador has experienced relatively low rates of GDP growth, in comparison to other developing countries. Rates have not risen above the low single digits in nearly two decades – part of a broader environment of macroeconomic instability which the integration of the United States dollar has done little to improve. One problem that the Salvadoran economy faces is the inequality in the distribution of income. In 2011, El Salvador had a Gini Coefficient of .485, which although similar to that of the United States, leaves 37.8% of the population below the poverty line, due to lower aggregate income. The richest 10% of the population receives approximately 15 times the income of the poorest 40%.

<span class="mw-page-title-main">Cabañas Department</span> Department of El Salvador

Cabañas is a department of El Salvador in the north central part of the country. Its capital is Sensuntepeque and it is one of coldest parts of El Salvador. Classified as a department in February 1873, it covers an area of 1,103.5 km2 (426.1 sq mi) and has over 164,900 inhabitants. The other major city of the department is Ilobasco. Agricultural produce includes coffee, sugar cane and sesame seeds, as well as dairy products. Gold, silver and copper are the principal minerals mined in the department. Its main industrial activity is oriented to manufacture of potteries, cheese, lime and distilleries.

<span class="mw-page-title-main">La Palma, El Salvador</span> Municipality in Chalatenango Department, El Salvador

La Palma is a municipality in the Chalatenango department of El Salvador. The municipality, located in a mountainous area of the country, covers an area of 135.60 km2 and as of 2006 had an approximate population of 24,000.

<span class="mw-page-title-main">A.D. Chalatenango</span> Soccer club

Asociación Deportiva Chalatenango is a Salvadoran professional football club based in Chalatenango, El Salvador, they are currently playing in the top-tier Primera División de Fútbol de El Salvador.

<span class="mw-page-title-main">OceanaGold</span> Gold mining company

OceanaGold Corporation (OceanaGold) is a gold mining and exploration company based in Vancouver, Canada and Brisbane, Australia.

<span class="mw-page-title-main">Salvadorans</span> Citizens or residents of El Salvador

Salvadorans, also known as Salvadorians, are citizens of El Salvador, a country in Central America. Most Salvadorans live in El Salvador, although there is also a significant Salvadoran diaspora, particularly in the United States, with smaller communities in other countries around the world.

<span class="mw-page-title-main">Salvadoran Australians</span> Ethnic group

Salvadoran Australians are Australians of Salvadoran descent. Salvadoran immigration to Australia was caused principally by economic and political turmoil in El Salvador.

<span class="mw-page-title-main">Lempa River</span> River that flows through Guatemala, El Salvador and Honduras

The Lempa River is a 422-kilometre-long (262 mi) river in Central America.

Cimarron Hydroelectric Power Project a hydroelectric power plant in El Salvador, that was to start construction in 2010. The plant would have been be located in the upper basin of the Lempa River, upstream of the Cerrón Grande Hydroelectric Dam. The proposed location of the dam was between the town of Agua Caliente on the left shore and Metapán, Santa Ana, on the right shore. A tunnel would divert water from the Lempa River to a powerhouse and substation to be built near Agua Caliente. With an estimated capacity of 261 megawatts, the project would have increased El Salvador's total generation capacity by almost 25%.

The Pacific Rim Mining Corporation is a multinational mining company headquartered in Vancouver, Canada. Its principal corporate offices are located in Reno, Nevada and has operations throughout the Americas. It merged with Dayton Mining Corporation in 2002. In 2013, Pacific Rim became a wholly owned subsidiary of OceanaGold.

<span class="mw-page-title-main">Afro-Salvadorans</span> Ethnic group in El Salvador

Afro Salvadorans are Salvadorans of Sub-Saharan African descent. They are the descendants of slaves brought to El Salvador via the Trans-atlantic slave trade during the colonial Spanish era.

<span class="mw-page-title-main">Canton El Tablón</span> Flooded locality in El Salvador

Canton El Tablón belonged to the municipality of Suchitoto, Cuscatlán, El Salvador. Canton El Tablón was one of many cantons in the surrounding area that was flooded as a result of the Cerrón Grande Hydroelectric Dam built in El Salvador between 1972 and 1976 that created the artificial Cerrón Grande Reservoir. According to former residents of El Tablón, the area was divided up into four main caseríos: Caserio La Hacienda Vieja, Caserio Los Figueroas, Caserio Valle El Tablón, and Caserio Los Palitos. It is unclear where the name El Tablón originated from, but according to local historians, a village named "El Tablón" existed prior to 1860 that was formed through a municipal ejido. An ejido was commonly owned municipal land granted by the Spanish Crown to governing bodies in the Spanish Empire. These lands were considered vacant or unused land in some cases belonging to existing indigenous communities.

<span class="mw-page-title-main">Sumpul River massacre</span> 1980 massacre in El Salvador

The Sumpul River massacre took place in Chalatenango, El Salvador on May 13, 1980 during the Salvadoran Civil War. Salvadoran Armed Forces and pro-government paramilitaries launched an offensive to disrupt the activities of the Farabundo Martí National Liberation Front (FMLN). The offensive created many refugees who were attacked the next day by the Salvadoran forces. The Honduran military prevented them from fleeing into Honduras, and between 300 and 600 refugees died. Both El Salvador and Honduras denied responsibility for the incident. In 1993, the United Nations Truth Commission described the incident as a serious violation of international law.

<span class="mw-page-title-main">Carlos Padilla (politician)</span> Filipino politician (1944–2023)

Carlos Mapili Padilla was a Filipino politician who served as the Governor of Nueva Vizcaya from 2016 until his death in 2023. Padilla was elected to his first term as Governor in 2016 and was re-elected in 2019 and 2022.

<span class="mw-page-title-main">Cerrón Grande Reservoir</span> Reservoir in northern El Salvador

The Cerrón Grande Reservoir, also known locally as Lake Suchitlán, is a reservoir in northern El Salvador and the largest body of fresh water in the country. The reservoir was filled between 1973 and 1976, subsequent to the construction of the Cerrón Grande Hydroelectric Dam. The Cerrón Grande Reservoir is among the most polluted bodies of fresh water in Central America.

Dora Alicia Recinos Sorto was a Salvadoran anti-mining activist who was murdered while protesting the opening of a mine by the Pacific Rim Mining Corporation.

El Dorado is a former gold mine, located San Isidro, Cabañas, El Salvador.

The Santa Cruz massacre was an eight-day massacre in November 1981 that killed dozens of civilians at Victoria, in the Cabañas department of El Salvador. It took place during the Salvadoran Civil War.

<span class="mw-page-title-main">Commerce Group Corp.</span> American mining company

Commerce Group Corp. is an American mining company based in Waukesha, Wisconsin. The company held mining rights to various mines in El Salvador.

San Sebastian Gold Mine is a gold mine located 2.5 miles northwest of Santa Rosa de Lima in the La Unión Department of El Salvador.

References

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