Will the World Bank undermine the people of El Salvador in mining dispute
by Janet MacGillivray Wallace
28 May 2010 1:54 PM
In a truly David and Goliath battle, the people of El Salvador are fighting against a Canadian mining giant that was lawfully denied permits for a gold and silver mine that would devastate the local environment and threaten the health and livelihoods of native residents. Next week, the World Bank will decide if the mining giant can pursue its greedy demands for payment under an industry-friendly trade rule that would force El Salvador to pay a huge penalty for blocking the project.
Vancouver-based Pacific Rim Mining Corp. has been exploring for gold and silver in the El Dorado region of El Salvador since 2002. That year, corporate gold diggers hit the jackpot when Dayton Mining discovered a gold and silver deposit at El Dorado, which lies 40 miles east of El Salvador's capital city San Salvador. Pacific Rim immediately merged with Dayton Mining and forged ahead with further exploration drilling.
But the people of El Salvador soon rose up against this destructive project when word spread about its potential impact on local communities: water contamination from cyanide and other toxic mining chemicals, heavy industrial activity in an area sacred to native residents, and other red flags associated with allowing a foreign company to extract profits by exploiting the land and people of El Salvador.
In 2008, the El Salvadoran government refused to grant Pacific Rim permits to continue mining at El Dorado, after an intense campaign by regional authorities, church leaders, and local grassroots organizations like the National Coalition Against Metals Mining. The impacts of mining on local water sources and the health of locals had been apparent since exploration got under way, and the public no longer stayed silent about the risks of further exploitation of El Salvador's resources.
Opposition to the mining project received a boost with the election of President Mauricio Funes, who vowed not to approve any such permits. Funes, who assumed office in June 2009, has said, "It's very simple: my government will not authorize any extractive mining project."
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Will the voice of the El Salvadoran people be heard in Washington? Or will the greed of Canadian mining company Pacific Rim Mining Corp. prevail yet again in the battle of extractive multinationals against the will of democratic society?
More:
http://www.grist.org/article/2010-05-28-will-the-world-bank-undermine-the-people-of-el-salvador-in-pacif/