Saturday, May 02, 2009

Pacific Rim sues El Salvador for $77 million

Pacific Rim, the Canadian gold-mining company, filed an international arbitration against El Salvador under DR-CAFTA this week. The suit had been anticipated ever since the company served a preliminary notice of its intent to arbitrate last December.

A copy of Pac-Rim's arbitration demand is available at this link. Pac-Rim asserts that the government of El Salvador is in violation of Chapter 10 of DR-CAFTA, which provides protections to foreign firms investing in DR-CAFTA countries. As described in this blog several times before, Pac-Rim believes that El Salvador has arbitrarily and contrary to Salvadoran law, denied it permits to extract gold at its El Dorado mine.

The arbitration demand takes aim squarely at President Tony Saca as the person behind the denial of the mining permits. But since Saca will soon be leaving office, it will be new president Mauricio Funes who will have to deal with the arbitration demand during his term in office. Funes stated during the campaign that he opposes gold mining in the country.

1 comment:

Anonymous said...

It's about time! What took so long! This should have happened years ago! Go get e'm Pacific Rim! Glad the blame is going to the right person! When this is over, El Salvador can get retribution from Saca and save El Salvadorian's from paying for this mess! It's been a long time since I've been on this site! Glad to see someone cover this since NOT A SINGLE ONE OF THE MAIN MEDIA had the guts to write about this in thier media!