Anti-Mining Movement Cautiously Celebrates Commerce Group Case Victory

Exactly two years after the Milwaukee based mining company Commerce Group filed their Notice of Intent to sue the Salvadoran Government for $100 million, the international trade tribunal released their decision to dismiss the case.   On March 14th, the International Centre for Settlement of Investment Disputes (ICSID) threw out the case on a technicality, stating that Commerce Group had violated ICSID regulations by failing to correctly terminate legal proceedings in local Salvadoran courts.  However, the ICSID denied the Salvadoran government’s request to deem the case “frivolous”. Therefore each party must pay $800,000 to cover the tribunal’s costs in addition on to their individual legal fees.

“It’s pretty outrageous that the government of El Salvador has been attacked for protecting the health and safety of its people,” said Al Gedicks, Member of the Midwest Coalition against Lethal Mining (MCLAM) and author of Resource Rebels. “If anything, it is Commerce Group who should be paying for the toxic legacy they have left behind.”

While the social movement in El Salvador together with the solidarity movement in the U.S. and Canada rejoice the victory, which U.S. press has called a result of “arcane legal technicalities,” they are also taking it with a grain of salt.  The ICSID decided not to rule on the actual matter of mining and the revocation of permits.  As the Sierra Club states in their press release “CAFTA’s flawed investment provisions allow companies to attack common sense public health and environmental laws.”  In their recent press conference, the National Roundtable against Mineral Mining in El Salvador  (the Mesa) expressed their concerns that the decision sets a troubling precedent for the Pacific Rim case – a Canadian company also suing the Salvadoran government to the tune of $77 million for not granting mining permits.  

 
On World Water Day the parish of Santa Rosa de Lima, the community of San Sebastian and the Center for Investment and Trade Investigation(CEICOM) organized an activity to celebrate the Commerce Group case victory and educate about the dangers of mining. Hundreds of people crowed into the church in San Sebastian for the event, which included presentations from CEICOM, the governor of La Union’s office, the Ombudsman for Human Rights’ Office and ended with a mass.  One high light of the afternoon was a video to video connection made (thanks to technology and the internet) between members of MCALM in Milwaukee and everyone at the event.  MCALM was able to greet and congratulate the community as well as commit to continuing their solidarity.  The MCALM speech was interrupted by boisterous applause at couple different moments.  Even though there are thousands of miles between Milwaukee and San Sebastian, it’s clear that people are united in common struggle.   A member of the local parish summed it up when she said, “We would like to thank everyone who in one way or another have struggled to make sure that mining doesn't happen.” 
 
The logical next step for the Salvadoran government would be to follow up with the complaints filed in 2007 and 2009 by the community of San Sebastian, the site of the Commerce Group mine.  The community demands that the company be tried for violating environmental codes by contaminating the San Sebastian River, which has elevated levels of heavy metals caused by dangerous mining practices.

Meanwhile, the social movement prepares for the second round of hearings in the Pacific Rim case, which have been postponed until May. Seven organizations from the Mesa, with the help of the Center for International Environmental Law, have filed an amicus curie brief in the case. This document, which has been accepted as evidence by the ICSID, is a petition to submit written testimony and outlines the dangerous impact of mining in El Salvador. It argues that “the grassroots, peaceful opposition to Pac Rim’s proposed mine -and the government‟s response to it – are entirely legitimate and should be celebrated as a sign of representative democracy not punished with multi-million dollar lawsuits.”

For a full text of the ICSID decision click here: Commerce Group Decision

For coverage of the ICSID decision in English:

International tribunal rejects Milwaukee mining company’s $100 million claim against El Salvador International community continues to demand reparations for environmental damage

National Journal Daily:  El Salvador, Poster Child for Trade Deals, Finds Itself Ensnarled in Courts Statement of Sierra Club's Rachel Ackoff, Associate Washington Representative, on CAFTA Challenge to El Salvador's Environmental, Public Health Policies

GET NOTIFICATIONS OF NEW POSTS
RSS
Follow by Email

Leave a Reply

Your email address will not be published. Required fields are marked *