Word on the street is that the ICSID (International Center for Settlement of Investment Disputes) tribunal hearing Pacific Rim Mining Company’s lawsuit against El Salvador will hand down a decision on the second round of preliminary objections before the end of the month. (Here is an article and a webpage with good information on the case). Pacific Rim, a Canadian firm based out of Vancouver, filed suit against El Salvador over three years ago for not granting them the permits necessary to extract gold from their Cabañas properties. Between 2002 and 2008, Pacific Rim allegedly invested $77 million in exploring properties in Cabañas and other parts of El Salvador. When the government and people of El Salvador said the mining company could not mine, Pacific Rim sued to recover their investment, lost profits, and damages. If Pacific Rim wins, they could receive a judgment worth more than $100 million.
El Salvador responded to the lawsuit by filing two rounds of preliminary objections, asking the court to dismiss Pacific Rim’s claim on procedural grounds. The first round of objections was unsuccessful, and we should hear about the second round in the next week or so. If the Tribunal finds in favor of El Salvador, they could dismiss part or all of Pacific Rim’s case. If they find for Pacific Rim, the mining company’s suit lives to see another day.
Oxfam is currently organizing a petition asking U.S. citizens to demand that the U.S. end their support for Pacific Rim and their claim against El Salvador. The petition reads:
Act Now: Speak up for El Salvador’s Right to Decide
In El Salvador, communities are fighting for their right to decide how companies can use their lands. Many of them have made a decision: they don’t want the metal mining industry to continue to destroy the environment they live and farm in. And they’re paying the price – each day, community leaders and activists face threats of violence and death because they’re standing up to metal mining companies.
What’s making this fight even harder? Right now, Canadian mining company Pacific Rim is trying to force El Salvador to keep metal mines in business by suing El Salvador for $77 million under the US-Central America Free Trade Agreement (CAFTA). This case could not only cost El Salvador a significant portion of its GDP, but it could prevent citizens from deciding which industries develop in their country.
A win for El Salvador in this case means that El Salvador could choose to stop metal mining – for good. The US government’s support for El Salvador over Pacific Rim in this case has been crucial. That’s where you come in. Will you help us make sure the US supports El Salvador in this case?
Tell Secretary of State Clinton: Support the people of El Salvador.
The petition is important because some within the US State Department associate anti-mining with being anti-development. They argue that if El Salvador passes a law that bans mining, it means the country is hostile to foreign investment. In 2009, Former Chargé d’Affairs Robert Blau wrote a cable to the U.S. Secretary of State with the Subject line: “New Environment Ministry Moves to Ban Mining, Sends “Anti-Development” Signals.” A ban on mining is not anti-development, it is respecting the wishes of the people who would be most affected by its disastrous environmental impacts.
The cable is worth a read. We recognize that Robert Blau has a pretty extreme view of U.S. foreign policy and that his view may not represent everyone within the Embassy (Blau is no longer at the Salvadoran Embassy). His view, however, exemplifies how neoliberalism affects policies in countries like El Salvador. The same people who want to gut the EPA and remove the environmental regulations that protect air, soil, and water in the U.S., also want to remove any barriers that might prevent them from pillaging resources around the world. Any efforts to protect the environment and the communities where people live are called anti-development.
The petition is important because we have to make sure the State Department understands that Salvadoran communities said no to mining because they want to protect their very limited natural resources. They are not anti-development, rather they don’t want their vision of development trumped by an international corporation that is only interested in profit. The U.S. should not support Pacific Rim and other corporations, but ought to respect the wishes of the affected communities.
Oxfam’s petition is not the only anti-mining news to report. Yesterday the MESA (Roundtable Against Metallic Mining in El Salvador) released a statement expressing their frustrations with the Salvadoran government’s inaction on mining. , the government commissioned a Strategic Evaluation of the Mining Sector to determine whether mining was feasible in El Salvador. The report was supposed to inform the Legislative Assembly and government ministries on how to manage mining, and whether they ought to pass an all out ban on mining, which is what the MESA has been advocating.
The MESA is frustrated with the lack of transparency in completing the study and the release of its findings. They recently filed a request for information about the report under El Salvador’s relatively new Law on Access to Public Information. They also requested information about what mining companies have applied for or hold mining permits. Lina Pohl, the Vice-Minister of the Environment and Natural Resources recently said the only possible scenarios are the suspension of mining permits (so far for just exploration, no mining company currently has an exploitation permit), and not granting new ones. The MESA believes this to be insufficient and that the study fails to take on the most important issues concerning the impact that mining would have on the country. They call on the government to be more proactive in defending Salvadorans and banning mining altogether. The MESA has posted several interviews on Youtube detailing these issues. If you speak Spanish, they are worth watching.
Please sign the petition today!