Only a few years ago, El Salvador became the first country to ban all metal mining. The ban was celebrated for protecting the environment and water resources. But the policy is shifting in the face of mind-boggling revelations.
President Nayib Bukele wants to overturn this ban. He claims there are $3 trillion in untapped gold reserves beneath the country.
“We potentially have the world’s largest gold deposits per square kilometre,” Bukele said, He calculates that extracting even if just 4% of the gold could earn his country $131 billion, nearly four times current El Salvador’s GDP.
Bukele’s support for mining has changed since he initially backed the ban during his 2019 campaign. The ban was instituted to protect the country’s fragile water resources from contamination caused by mining operations.
He now argues for “modern and sustainable” mining, which he claims will protect the environment while boosting the economy.
Too Sweet To Resist
Yet, his critics worry mining will contaminate water sources.
Pedro Cabezas of ACAFREMIN said, “There is no evidence to support… ‘responsible mining’.” He warned the impacts could be severe and wants the government to prioritize health over wealth.
But is Bukele listening? The President is also a fan of Bitcoin, supporting its adoption in El Salvador as legal tender.
The president is also tough on organized crime. Since March 2022, over 80,000 people accused of gang affiliation have been incarcerated. He says he will apply a similar top-down approach to hold down illegal mining and transform El Salvador’s economy through regulated mining.
He recently created the General Directorate of Energy, Hydrocarbons, and Mines, indicating a shift in emphasis toward mining.
In the end, what arguments can you make to a president who sees a chance to increase his country’s GDP fourfold and transform his nation and its people into a rich, prosperous one?
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