CESTA rejects Pacific Rim's lawsuit

The Diario CoLatino reports that the Salvadoran Center for Appropriate Technology (CESTA), a Salvadoran member of Friends of the Earth International, called Pacific Rim Mining Company's lawsuit against the country an "injustice." CESTA's President, Ricardo Navarro, stated that Pacific Rim's legal action is an effect of the flaw of the Central American Free Trade Agreement (CAFTA). Navarro pleaded, "I urge the Legislative Assembly to establish a lay that prohibits metallic mining, then, we should review and analyze Association Agreement of the European Union and Central America (AdA) which is more of the same, and finally, President-elect Mauricio Funes should make revisions to these economic treaties without fear." Touching on the insecurity that many Salvadorans feel regarding the outcome of the lawsuit, Navarro stated, "We could lose the cause, because it's an international tribunal and we don't know if it's impartial or if it has corporate leadership, we do not know who they are because it is a closed process, but we should continue fighting and remove Pacific Rim from the country."

To read the full article, click here. To learn more about Pacific Rim's lawsuit, click here.

- Sara Skinner, US Grassroots Coordinator

*Photo from The Ecologist.

"Victimizer wants to punish the victim"

Below is an English translation of the public opinion piece from the National Working Group Against Metallic Mineral Mining published in the Diario CoLatino in response to Pacific Rim's initiation's of arbitration proceedings against the Salvadoran government.

Victimizer Wants to Punish the Victim

On April 30, Pacific Rim made good on its threat to sue the Salvadoran State for denying them the environmental permit to extract the El Dorado mine in San Isidro (Cabañas).

Having completed the ninety days waiting period, the Canadian company went to the International Center for Investment Disputes (ICSID) to demand repayment of $77 million in “mining exploration investments.”

The mining company announced its decision to sue the country at the beginning of December of 2008, under CAFTA regulations. During the following three months, the government of El Salvador has to look for an “amicable solution,” which means to say, the authorization of the solicited permit.

However, instead of a favorable response, Pacific Rim was met with President Antonio Saca’s and President-elect Mauricio Funes’ commitment to prevent mining project in national territory.

In the words of the German economist Franz Hinkelammert, Pacific Rim’s lawsuit is a case where the victimizer presents himself as a victim: the assailant asks for punishment for the one who is assaulted.

We shall see. The mining company came to this country and dried up the water sources in San Isidro, caused economic losses in Guacotecti, generated conflicts among the community in Sensuntepeque, corrupted mayors and legislators, violated environmental law, offended religious authorities, spread misleading information, etc.

Therefore, the communities of Cabañas, the Catholic Church, and the Salvadoran government are the ones who, as victims, prosecute the mining company, the victimizer. But no. It is Pacific Rim that is presented as the one whose “rights have been violated” and demands millions of dollars in compensation before the corporate tribunal, who resolution is easy to foresee, given that entities such as ICSID only respond to interests of corporate transnational companies.

The Archbishop of San Salvador, Monsignor José Luis Escobar Alas, rightly insists that the mining company only received exploration permits and that extraction licenses are not automatic.

However, outside of legal arguments, El Salvador should appeal to the principles of human dignity, national sovereignty, self-determination of the people, defense of the environment and the continuation of life.

Reject the mining company’s demand and, at the same time, sue the company for causing ecological, economic, social and institutional damages, it a matter of national interest. The country, citizens and the government should close ranks.

The case should also serve to reactivate the struggle against CAFTA. If it is not repealed or, at the least, some of its most damaging aspects are not modified, this trade agreement will make us subject to transnational companies that damage the ecosystem, productivity, and life.

- Communications Staff of the National Working Group against Metallic Mineral Mining

*Photo from mimundo.org/Oxfam America.

- Translated and posted by Sara Skinner, US Grassroots Coordinator

What We Want: An Interview with a Salvadoran Student Activist

Below is an excerpt of an interview with Oswaldo Natarén, a student activist and founding member of the Roque Dalton University Front of the University of El Salvador, with Erica Thompson. This interview is part of a series of interviews with Salvadoran activists conducted by Upside Down World.

UDW: Tell us a little bit about the founding of the FURD and why you chose Roque Dalton as a historic figure to identify with?

ON: The FURD was envisioned as a new chapter in the ongoing response of students in the National University to organize ourselves and to uncover the UES’ historic role in El Salvador’s revolutionary movement. The political project of the FURD arose in 2002 out of a collective need to continue that struggle. The group continues to explore and affect the life of the University through these objectives: to examine the other side of the history that is taught to us; to discover that there are many of us who think differently than the way society has trained us (as this is the case, we often think differently than one another); and to articulate both what the University’s role in society is at the moment and what it could be. The group’s name is inspired by the revolutionary Salvadoran poet, Roque Dalton Garcia. Roque was an untiring social fighter, poet, and important political architect of the revolutionary movement in El Salvador. He completed his University training at the UES and then went on to create a great literary legacy in his time of struggle throughout the 1960s and 1970s, until his assassination at age 39. It was necessary to recover the name of this poet and his struggle because of the political and personal essence of his work.

The FURD was created with a clear leftist ideological intention – we wanted to be identified as part of the anti-imperialist struggle, in connection with academic political struggle. Our project changed measurably when we began to delve into the study of diverse theories that have guided different people’s struggles for human rights, but we have maintained our leftist essence. Our idea is to form a political student FRONT that incorporates University youth from various disciplines as well as University workers and faculty into the struggle. To me, the word UNIVERSITY implies our potential to come together in this institution and continue the historical legacy of the glorious Salvadoran student movement.

UDW: Describe El Salvador’s coyuntura leading into elections earlier this year. What are the social realities and political frustrations in the country that, for the present time, have translated into major political gains for the leftist FMLN party?

ON: Well, throughout the 20 years that ARENA (National Republican Alliance) has ruled the country, Salvadorans have faced a very difficult situation. Poverty has increased under the ARENA government and policies of social exclusion have been maintained. When the government began implementing neoliberal policies in the mid-90s - including the privatization of banks, electricity, pensions and other institutions of social benefit – El Salvador entered a new period of economic crisis. Many compatriots have been forced to leave the country in search of a basic means of survival....

To read the rest of the interview click here.

*Roque Dalton stencil by Oswaldo Natarén. Photo of Natarén courtesy of Upside Down World.

- Sara Skinner, US Grassroots Coordinator

BREAKING NEWS: Pacific Rim subsidiary sues Salvadoran government

Today a Pacific Rim Mining Company subsidiary began arbitration proceedings under CAFTA (Central American Free Trade Agreement) against the Salvadoran government. The company claims that is has operated "in full compliance with Salvadoran law, including the country's environmental, mining and foreign investment laws, and have met or exceeded all applicable standards while conducting business in El Salvador." In a press release, Pacific Rim stated its intention to seek damages in the "hundreds of millions of dollars from the [Salvadoran] government" for its loss of potential profits.
Pacific Rim officials state that their company has invested over $77 million in their mining projects. The company states that the Salvadoran government has violated international and Salvadoran law by failing to issue the company mining extraction permits. In a statement included in the press release, Tom Shrake, Manager and CEO of Pacific Rim, tried to appeal to those with concerns regarding the effects of mining on human rights, environmental rights, and the Salvadoran economy. "It is not just the rights of Pacific Rim that are being compromised, but the rights of all Salvadorans and future foreign investors," he lamented, claiming that Salvadorans were losing out on jobs and the privilege of being one of the first countries in the Americas to hold a new standard in environmentally-friendly mining projects.

To read the press release, click here. To read a copy of the filing, click here.

- Sara Skinner, US Grassroots Coordinator

A new environment towards mining

Just five years ago, the Glencairn Gold Corp. said Central America was “a top destination for mining companies” where the political situation “encourage[s] mineral exploration and mining.” Yesterday, the Global Post published this article on the changing prospects for mining companies in the region, largely due to strong anti-mining campaigns.

The Catholic Church has been vocal in the anti-mining protests that seem to be impacting the government’s stance toward mining. In Guatemala, two mining activists were murdered and a bishop received a death threat, which may have prompted the government to halt the distribution of mining permits. During this six month moratorium, the Guatemalan government will consider a new law that which would require mining companies to give 4% of the profits to the government, an increase from the current requirement of 1%.

The environmental advisor in Costa Rica similarly proposed to halt giving new mining permits, and Honduras has stopped issuing new permits while it devises a new tax structure for mining.

The changes in policy and strong opposition from the people are driving mining companies out of the area. In 2002, Canada spent $41 million on Central American mining operation, and in 2006 spent $1.6 billion. However, between 2006-2007, spending dropped 32%, reflecting the new attitude toward the region.

In El Salvador, where for a few years the Canadian company Pacific Rim has been exploring for gold, the government has officially denied them an extraction permit. While the company can now legally arbitrate under CAFTA for the rights, it is refraining to do so until the economic situation improves.

One of the biggest concerns against mining is the use of cyanide to extract the metal from the surrounding ore. Many fear that the cyanide will contaminate the water, affecting the residents and killing water animals and livestock. A recent cyanide spill at a mine in Honduras actualized these concerns.

Despite the advantage of bringing foreign investment and jobs, it seems the mining industry will be facing a lot of obstacles due to the strong resistance of the people. Indeed, Pacific Rim said that the laws and anti mining atmosphere are “undoubtedly a major deterrent to future investment in the region.”

A Guatemalan environmentalist and journalist commented on the situation: “Around the region, something very interesting is happening. The people are leading the fight against gold mining and its working.”

- Leslie O’Bray, SHARE Grassroots Education and Advocacy Intern

*Picture taken from the Global Post

A Sign of Things to Come?

The New York Times published an interesting article today about NAFTA's unfilled promises in Mexico. The article points out that in many cases NAFTA has produced "exactly the opposite of what was promised," and provides the following examples:

• The dismantling of domestic industries as multinational companies choose to import from their own suppliers;
• The inability for local farmers to compete with food imports; and
  
• Emigration to the United States.

Given NAFTA's failure 15 years after its implementation, what can we expect from DR-CAFTA? Mauricio Funes, El Salvador's president-elect, has repeatedly stated that he does not support El Salvador's withdrawal from the free trade agreement. Yet, as the food crisis continues and more and more Salvadorans leave the country in search of employment, will Funes change his mind?

- Sara Skinner, US Grassroots Coordinator

Interview with President-Elect Mauricio Funes

New America Media recently posted the interview below with President-elect Mauricio Funes after his win on March 15, 2009. In the interview Funes discusses immigration, US-El Salvador relations, and why he believes CAFTA should not be repealed.

Immigration has become one of the defining issues of the United States-El Salvador relationship. How will your administration’s immigration policies differ from those of the outgoing administration?

The fact that we're going to rebuild the democratic institutions--enforce the constitution and make El Salvador a democratic state that respects the rule of law--is the best guarantee to the United States that we will significantly reduce the flows of out-migration.

Salvadorans who leave to the United States do so because of the institutional abandon, the lack of employment and dignified salaries to make a living. This forces them to leave in search of new possibilities in the United States.

It's not the same for us to ask the U.S. government to renew TPS
[temporary legalization] without a Salvadoran effort to avoid further migration flows, then to do so from a position in which we have undertaken efforts to reduce the migration flows.

What’s the first message you’d like to send to President Obama?

The message that I would like to send to President Obama is that I will not seek alliances or accords with other heads of state from the southern part of the continent that will jeopardize my relationship with the government of the United States.

Opinion polls in El Salvador indicate that large majorities of its citizens reject key policies that define, in many ways, the relationship between El Salvador and the United States, specifically CAFTA, dollarization and the Iraq war.

We can't get mixed up in repealing CAFTA...nor can we reverse dollarization because that would send a negative message to foreign investors, and then we'd be facing serious problems because we wouldn't have enough investment to stimulate the national economy.

What do you think the United States government should be concerned about with regards to El Salvador at this time?

The degree to which we do our part, which is to rebuild our productive capacity and to create a coherent social policy that improves the quality of life, there will be fewer reasons to leave for the United States, and we'll reduce migration flows. And that should be a concern for the United States.

Where will the effects of the transition in power be felt most immediately?

We're going to change the way we make policy. And one of the most significant changes is that we will no longer have a government at the service of a privileged few. And we will no longer have a government that creates an economy of privileges for the privileged. Now, we need a government like the one envisioned by Mons. Oscar Arnulfo Romero, who in his prophetic message said that the church should have a preferential option for the poor.

Paraphrasing Mons. Romero, I would say that this government should have a preferential option for the poor, for those who need a robust government to get ahead and to be able to compete in this world of disequilibrium under fair conditions.

This government implies a break from traditional policymaking. Now, what we're going to do is put the government and the structure of the state at the service of the Salvadoran people––the totality of the Salvadoran people – but, fundamentally, to that great majority who are oppressed and excluded from the country's social and economic development. Not just the last 20 years, but for the last 200 years or more, have not had the possibility of participating in the formation of public policies.

A government like the one I'm going to create will give them the protagonist's role, which until now they have not had.

- Posted by Sara Skinner, US Grassroots Coordinator

Saca says he won't grant Pac Rim permits, would rather pay CAFTA suit

President Antonio Saca recently declared that he will not grant extraction rights to Pacific Rim, a Canadian-based mining company that has been exploring gold mining options in El Dorado, El Salvador. His announcement comes just before the three-month period for the amicable negotiation between the government and company ends and the dispute goes before international arbitration. President Saca added, “I want to make something clear, I prefer to pay the $90 million dollars [for arbitration] than to give them a permit.”

President Saca stated that he wants a business that can demonstrate that its practices will not harm the environment. The idea of “green mining,” Saca says, is “a very superficial thing.”

Pacific Rim has invested about $70 million in El Dorado, and is arguing that to deny them extraction rights violates CAFTA-DR. They claim they have complied with all legal requests, and superseded the environmental laws and regulations. The government, however, says exploration rights do not oblige the government to give extraction rights.

There has been a lot of civil resistance to mining. The Catholic Church has been in open opposition, particularly under the new archbishop of San Salvador, Monseñor Luis Escobar Alas. Monseñor Alas publicly stated his support of Saca’s decision about mining, as did Roberto Rubio, director of the National Foundation for Development (FUNDE). Both men cited the environmental consequences of mining as a major concern.

-Leslie O'Bray, SHARE Grassroots Education and Advocacy Intern

Pacific Rim freezes study on mining in El Dorado

Vancouver-based Pacific Rim Mining Company announced on February 11 that it will defer completion of its feasibility study for mining in El Dorado. The volatility of costs (both fuel and steel prices are down, meaning current capital prices appear artificially low) does not currently provide an accurate estimate on commodity prices and capital equipment.

CEO Tom Shrake said, “We see no need to spend precious capital to complete a study with an already invalid cost basis. We will wait for clarity on the timing of our permit and stabilization of the prices for capital and operating inputs.”

On December 9, 2008, Pacific Rim filed a Notice of Intent against the Salvadoran government, claiming that failing to grant an extraction permit violated investor rights under CAFTA-DR. It has received much resistance because of the serious health and environmental implications mining has on communities including the prospect of dislocation. The Salvadoran Government and Pacific Rim have until March 9, 2009 to settle the dispute amicably before Pacific Rim has the right to bring the issue before a third party.

To read the article in Mining Weekly, click here.

To read more about the background of the issue, see SHARE’s E-newsletter.

-Leslie O'Bray, Grassroots Education and Advocacy Intern

El Salvador Responds to Pacific Rim's Legal Action

In response to Pacific Rim Mining Company's December 9 announcment of filing a Notice of Intent (NOI) to arbitrate against the Salvadoran government under CAFTA for failing to grant mining exploitation permits, notable figures in Salvadoran civic and religious society have taken a stand against the mining company. On December 14 after a mass in the metropolitan cathedral, the Archbishop of San Salvador, Fernando Sáenz Lacalle criticized Pacific Rim, "It is not right to risk the health of the people and damage the environment so that a few who do not live here can take 97% of the juicy earnings but they leave us with 100% of the cyanide." His statement is consistent with those made by the participants of the Conference of Roman Catholic Bishops in El Salvador in 2007, where the Bishops released a statement of opposition to gold and silver mining in El Salvador.

The Mesa de Minería, the Salvadoran national coalition of anti-mining groups, issued a press release following Pacific Rim's announcement. The Mesa urged people from all sectors of Salvadoran society to protest Pacific Rim Mining Company. The Mesa also promoted its most recent campaign, "I Reject Metallic Mining: Sign the Citizen's Letter," which demands that the Salvadoran president, Antonio Saca, not approve mining projects and calls for the Legislative Assembly endorse a law the prohibits metallic mining.

Click here to visit the Mesa de Minería's website and sign the Citizen's Letter against mining.

- Sara Skinner, SHARE Foundation

Pacific Rim Filed a Notice of Intent to Seek CAFTA Arbitration

Pacific Rim Mining Corporation announced his morning that it has filed a Notice of Intent to seek CAFTA (Central American Free Trade Agreement) arbitration against the Salvadoran government for prohibiting the company to mine in El Salvador. Pacific Rim says that the Salvadoran government's failure to issue exploration and exploitation permits to the company has cost the company significant financial losses. Pacific Rim argues that because it has invested over $75 million in El Salvador, the company is entitled to the mining permits.

Tom Shrake, President and CEO of Pacific Rim stated, "It is with deep regreat that we must now pursue our legal rights through the initiation of a CAFTA action and we intend to pursue these rights vigorously. He also added, "Sadly, it is not just Pacific Rim whose rights are being compromised, but the rights of all Salvadoran and foreign investors. Local communities and social and environmental agencies are being denied the benefits of our community programs."

The Salvadoran government and Pacific Rim have 90 days after the filing of the NOI to resolve the matter under CAFTA rules.

CONFERENCE CALL

Pacific Rim is hosting a conference call TODAY to discuss the details of their action. The conference call starts at 11:00 am (EST) and is open to all interested parties. For those who missed the call, a replay will be available from 3 hours after its original completion until December 16, 2008. For those calling from the US or Canada, call toll-free 1-800-406-7325. For those calling from other countries, call 1-303-590-3030. The access code to listen is 3952530.

Click here to read the full article.

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Note - Pacific Rim's announcement comes just days after dozens of Salvadorans staged Pacific Rim's "funeral" in San Salvador. Check out the article from the Institute for Policy Studies.

- Sara Skinner, US Grassroots Coordinator

CONFRAS Criticizes the Right in a Press Release

In a press release from 27th of November 2008, the farmers association, CONFRAS, stated their dissatisfaction with the right-wing neglect of their demands. During 2008 they have made a series of proposals to the Legislative Assembly for changes in agricultural laws. None of these proposals have neither been discussed nor approved by deputies from the conservative parties.

Salvadoran farmers are facing hard times due to the vulnerable state of the agricultural industry. CONFRAS states that the Salvadoran government is not willing to put much effort into protecting them, and an increasing amount of food products in El Salvador are being imported from abroad. 81% of all rice in the country comes from other countries, and 42% of the corn.

CONFRAS says that the agricultural sector is in crisis due to several factors: free trade agreements like CAFTA, high food production costs, lack of access to credit, lack of technical support, and speculation in grain prices.

Rural areas in El Salvador provide few stable job opportunities for farmers and the salaries are very poor. Many of the farmers here live in poverty, which encourages the rate of immigration to larger cities in El Salvador and abroad.

CONFRAS addresses this press release specifically to the conservative deputies, claiming that they don't care about the poor farmers. They urge them to do something to reactivate the agricultural sector and secure the agricultural conditions in the rural areas.

Here is the link to the press release
Download

- Lars Joon Flydal, Grassroots Education and Advocacy Intern

Video on Metallic Mineral Mining in ES

Click on the link below to watch a video on metallic mineral mining in El Salvador. The video also includes an interview with Marcos Orellana, a Chilean lawyer who specializes in environmental law and international treaties. To view the video, click here.

*This video is in Spanish.

-Sara Skinner, US Grassroots Coordinator