Mining in El Salvador

Mining in El Salvador expanded in scope from artisanal mining to industrial mining at a mine in San Sebastián in the 1970s. Chemicals from that mine polluted the San Sebastián River.

Mining activity ceased during the Salvadoran Civil War. After the war, the country's right-wing government proposed 33 designated mining zones and issued exploration licences to American, Australian, and Canadian companies. The plan was met with opposition from many local community and community leaders, who successfully blocked exploration in Chalatenango in 2005.

Canadian company, Pacific Rim Mining Corporation obtained a permit to explore the El Dorado gold mine in 2002, but were denied a license to mine in 2008, following local opposition.

Mining for metal was banned in 2017, although the creation of a mining regulator in 2021 and the arrest of anti-mining activists in 2023 prompted public speculation that the government is considering resuming mining.

Background
El Salvador is a small nation, densely populated and very vulnerable to the impacts of climate change.

The Association of Economic and Social Development (ADES) organization works to highlight water pollution issues in El Salvador.

History
Artisanal mining has occurred in El Salvador, including at the San Sebastian Gold Mine that opened in 1904. Mining became a national significant economic activity in the 1970s when Waukesha, Wisconsin-based company the Commerce Group Corp industrialised the mine. The industrialisation led to the cyanide, arsenic, and mercury poisoning of the San Sebastián River. Mining in El Salvador was halted by the Salvadoran Civil War.

After the war, the right-wing Nationalist Republican Alliance government planned 33 areas for mining, and granted 28 licences to Australian, Canadian and American mining companies. The plan was quickly met with hostility from local communities, who had not been consulted. Community opposition was most fierce in Chalatenango and Cabañas where the community retained land-ownership rights.

In 2005, Canadian company Au Martinique Silver began prospecting in Chalatenango, despite objections from the majority of community leaders, who with support from U.S. activist organization the Madison Arcatao Sister City Project successfully halted the project.

In 2002, Canadian company Pacific Rim Mining Corporation obtained a license to explore El Dorado gold mine but were denied a license to mine in 2008. The mine had been in operation, according to Pacific Rim Mining Corporation's parent company OceanaGold, from 1948 to 1953.

Metal mining was banned in 2017 in El Salvador, following a campaign by the catholic church, activists and community members. Despite the ban, artisanal mining continues.:6" />

The government agency General Directorate of Energy, Hydrocarbons and Mines was formed in October 2021. The arrest of anti-mining activists, amidst allegation of a 1989 murder during the Salvadoran Civil War, prompted public speculation that Nayib Bukele's government may lift the ban. Antonio Pacheco, the director of ADES was among those arrested.

At the time, El Salvador was in financial troubles, following a failed crypto currency scheme.