El Salvador wins arbitration battle against mining company

The World Bank’s International Centre for Settlement of Investment Dispute (ICSID) ruled on 14 October 2016 in favor of El Salvador in an arbitration case with mining company OceanaGold (Elsalvador.com). ICSID ruled the Canadian company, which bought the Australian Pacific Rim company involved in the 2013 case, pay El Salvador US$8 million in damages and Attoreny General Douglas Meléndez announced the money would go to a general fund (La Prensa Grafica). Pacific Rim tried to negotiate before the ICSID’s decision, but Meléndez refused. The mining company brought El Salvador to court, asking for more than US$300 million in compensation for alleged obstructions, after they lost their right to mine in El Dorado (El Diario de Hoy). Pacific Rim received the rights for exploratory mining in 2002, but these rights were revoked in 2006 and later the company was denied mining permits (La Prensa Grafica).