The CAFTA Report
Pacific Rim mining firm will seek arbitration
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The CAFTA Report
Pacific Rim mining firm will seek arbitration
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Pacific Rim mining firm to seek arbitration For The CAFTA Report A Canadian-American mining company has filed a notice that it intends to seek arbitration to be reimbursed some several hundred million dollars from the government of El Salvador. The claim is being pursued under the Central American Free Trade Agreement. The company, Pacific Rim Mining Corp. of Vancouver said Tuesday that its subsidiary, Pac Rim Cayman LLC, a Nevada corporation, was making the claim. The company left open the door that an informal resolution might be made within the next 90 days. A mine design for the company's El Dorado gold project was submitted to the government of El Salvador in its final form in October 2006, over two years ago, the company said. But the government has yet to issue the needed permits, By exploring, discovering and delineating gold deposits in El Salvador while at all times operating in full compliance with El Salvadoran law, Pacific Rim has developed precious metal assets higher in value than the investment of over US$75 million undertaken in El Salvador by the company and its predecessors, the company said. "With the mine operating, Pacific Rim would be the single greatest contributor to the tax revenues of the country, and rather than providing thousands of new lucrative jobs for El Salvadorans, we have had to dismiss over 200 local workers in the past few months," said Tom Shrake, president and CEO of Pacific Rim. The company said it would press the claim through the World Bank's International Centre for Settlement of Investment Disputes in Washington, D.C. This arbitration system is set out in the trade treaty. Some Central Americans object to the arbitration provision bedcause it puts their actions under ineernational review. This has been a criticism in Costa Rica, too. However, international investors like the idea of an arbitration review to counter governmental high handedness. |
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