Tim on gold mining disputes in El Salvador

As usual we get top class fare from Tim's El Salvador Blog today, as Tim presents the balanced view of mining vs environment matters in his country of focus. Here's how his post starts, I urge you to click through and get the full story as the better informed make better investment decisions.

Gold, lawyers and contaminated rivers

Two different headlines today are intricately related. On the CNN Money website, the headline was Gold Edges Up to a New Record, which told readers that for the first time in history, the price of gold on international markets closed at $1280 an ounce. In the Salvadoran newspaper DiarioCoLatino, the headline was San Sebastian: The Open Secret of Mining Pollution. This article describes the legacy of pollution in the San Sebastian river, which local residents and activists say stems from a gold mine there. The mine is owned by the US company the Commerce Group, based in Milwaukee, Wisconsin.

It is the record high prices of gold which have led North American gold mining companies like the Commerce Group and Canadian firm Pacific Rim to go to battle with the government of El Salvador. The Salvadoran government currently prohibits both firms from operating gold mining concessions. With gold at record high prices, the conflict between monetary profits and the fear of environmental degradation from mining is a sharp one. CONTINUES HERE

Arrests in El Salvador

Here's a story worth following in the next few days. On June 30th, eight people in El Salvador were arrested in connection with the widely documented murders suffered by the local anti-mining lobby opposed to the Pacific Rim (PMU) (PMU.to) gold project. As the 'Voices From El Salvador' blog puts it:

"In discussing the issue, the police stated that this is a very complex and complicated issue. In our investigations into the violence we have found the same. The relationships between the victims, the perpetrators, Pacific Rim, the local mayors and diputados, and organized crime are very complex and require a very thorough investigation. We hope that these arrests are the beginning, and that the Salvadoran and international community continue their work to ensure justice in each case". Continues here

It will be more than interesting to find out whether or not the eight arrested this week have any direct connection with Pacific Rim and whether their statements implicate (or not) the company in the assassinations. Watch this space.

h/t tim

El Salvador: No mining, no way

Here's a small section from yesterday's IKN38 that catches up with the mining scene in El Salvador. For more on the activist murders, click the link and visit the full CIPSES report.

El Salvador: Is this clear enough for you?

Here’s part of a speech made by El Salvador’s (popular) president, Mauricio Funes, on January 12^th 2010 and translated by CIPSES (15):

“There can be no misunderstanding; my government will not authorize any mining extraction projects.

“No one has convinced us that there are ways to extract minerals and metals, especially metals, without contaminating the environment and affecting public health. We are not going to [authorize extraction permits].”

Also, I expect Pacific Rim (PMU.to) was very glad to close successfully its $2.35m placement on January 14^th (16) because PMU was specifically mentioned by Funes in the same speech, in relation to the recent murders of three anti-mining activists opposed to the PMU projects in the country. Funes Said:

“I have personally given instructions to the Minister of Justice and Security and the Director of the National Civilian Police to investigate those cases,” Funes declared, pledging to shed light on “the motives that are behind these assassinations.” The president stated that those killed had “sacrificed their lives in pursuit of a better environment and a better quality of life for Salvadorans.”

So get your big red marker pen out and put a large cross in the country of El Salvador for anything concerning mining, miners and investment.