Brazil’s Gerdau buys out Sumitomo Corp and JSW in Gerdau Summit
The transaction is expected to close in early 2025.
Lawmakers in El Salvador, Central America’s smallest nation, have passed a law that bans all mining for gold and other metals, making the country the world’s first to impose such a broad prohibition on the extraction of minerals, environmentalists and human rights groups said.
The ruling, aimed at protecting the nation’s allegedly quite fragile environment, comes after a long-dragged dispute over a proposed gold mine by Pac Rim Cayman, a unit of Canadian-Australian company OceanaGold Corp. (TSX:OGC).
The law also bans the use of cyanide and mercury for mining.
Legislators across the political spectrum supported the measure, which does not apply to quarrying or the mining of coal, salt and other non-metallic resources.
Supporters said the ban was essential to protect water reservoirs and reduce social tensions.
“Mining is not an appropriate way to reduce poverty and inequality in this country,” Ivan Morales, country director for the charity Oxfam in El Salvador said in a statement. “It would only exacerbate the social conflict and level of water contamination we already have.”
The law also bans the use of cyanide and mercury for mining.
According to the United Nations, El Salvador is one of the most densely populated countries and the second-most environmentally degraded in America, after Haiti, which makes it especially sensitive to the potential impact of large mining projects.
In October, the government won an international arbitration case filed by Pac Rim over a rejected licence to build a gold mine in the country’s north. The panel rejected the company’s claim for compensation.
13 Comments
Bryan
I’d say we refuse to sell them any products that contain metal, use metal in their manufacturing, or require metals to be transported. I’d give them about 6 months before these looters realize they can’t live without us.
Mike Failla
It their country and they can do what they want with it. They made bad decisions? Maybe. They have a fragile environment? maybe. They dont want any metal mining? perhaps. Short sighted and myopic? Yep. At least they have bananas.
disqussted999
Bananas are necessary, right, for their type of “republic?”
Exiliadoenelcaribe
“…most densely populated”. Over-population is the key issue.
Andy Whitten
Did anyone read the oxfam press release? To praphrase: “We’ve rejected unsustainable mining to address our economic poverty, now pay us some more charity for sustainable basket-weaving employment programs.” Is welfare sustainable? Apparently Oxfam thinks so; at least as long as they get their cut.
wags1
Typical of corrupt, tin-pot Countries. Just outlaw a particular practice, then extract bribes and kick-backs from your cronies who are then allowed to engage in said activity.
Denial that this is standard practice in some Countries indicates either your naivete or complicity.
E Trembley
Lets be honest about this whole thing there is nothing naïve about these countries, they are now cutting the middle man out and working on the agenda some mining firms have deployed there for years. they now see the money is to be had and they will just do what these firms have been doing for years and that’s fiddle the system and the people. its a blow to the industry but its because of the under handed ways of some in the industry these corrupt officials are doing what they are doing.
Ricardo Valls
This is, probably, fake news…
At least I hope it is
F McAllister
46th most populated country way behind the likes of India, Japan, and the Philippines. A very short sighted policy decision. Sort of hypocritical given their people will continue to use cars, phones, refrigerators and roads. An iPhone has 30 elements from mining.
RDC1378
Looks like slo-motion nationalization of a valuable resource. Wait a couple of years, re-instate mining and sell the deposit to the highest bidder.
Gringo Perdido
Long history on this one! The issue here is ‘patrimony’ or who owns the gold. Also, this issue has impacted several other companies and not just Oceana/PacRim. So what we have here is a de facto nationalization of the known and potential precious metal deposits of ES – problem solved! There are two water treatment plants in the country, all rivers are 10,000X WHO fecal standards, can buy turtle eggs, parrots and iguanas on any corner, burning and de-forestation are sports. I could go on! So it is not about the environment. But it is crowded – right? Not really because everyone is leaving dead or alive. So let’s consider another question, “Doesn’t the Catholic Church have enough gold?” I believe El Salvador might be better served by exporting metal that exporting people who want to live and work.
Ron Carver
Where was the outrage from readers of Mining.com when four anti-mining activists were assassinated? Who among you complained when smaller rivers in El Salvador were poisoned by exposed metals and cyanide? Who among you has called for escrow accounts from mining profits so contaminated lands and rivers can be cleaned after mining companies pull out and conveniently declare bankruptcy? Your concern for the people of El Salvador rings hollow.
Yonnie
Looks like there are two main points. Social and political strife and inequity, and environmental issues. Perhaps if a sustainable mining sector could be established the outcomes would be different. Using tactics such as denying countries materials they need to participate in the global economy and potentially address poverty issues tends to force mining back into production which really doesn’t solve any of the contributing factors. Without sustainable economic, social and environmental practices the cycle of conflict and ecological and humanitarian demise will continue. But I’m a neophyte and these are complex challenges.