No Dirty Gold in El Salvador!
We Oppose Commerce Group’s Lawsuit Against the People of El Salvador!
In response to El Salvador’s rural grassroots movement to stop destructive gold mining in the departments of Cabanas and La Union, both Pacific Rim and Commerce Group are suing the government of El Salvador for $77 million and $100 million respectively, each in compensation by using the investor “protections” of the U.S.-Central America Free Trade Agreement (CAFTA-DR).
What is Commerce Group?
Commerce Group is a Milwaukee-based company which owns the San Sebastian gold mine in El Salvador. Commerce Group’s sporadic mining activities over the past 40 years have reportedly resulted in severe environmental and public health problems in the municipality of Santa Rosa de Lima, where the mine is located. As a result of these problems, the Salvadoran government revoked Commerce Group’s mining permit on September 13, 2006. Now, taking advantage of “foreign investor protections” in the Central America Free Trade Agreement (CAFTA), Commerce Group is suing the Salvadoran government for $100 million.
Why Do We Oppose Commerce Group’s Lawsuit?
1. This lawsuit is a cynical attempt by an unsuccessful company to exploit international trade agreements to make money which they have been unable to make by legitimate means. According to Commerce Group’s own filings with the U.S. Securities and Exchange Commission (SEC), the company has had no earnings since 2002, four years before their permit was revoked, and the company has not been engaged in mining since 1999, seven years before their permit was revoked. This lawsuit is nothing but a dishonest “get rich quick” scheme at the expense of a sovereign nation.
2. The people of Santa Rosa are continuing to suffer the environmental and public health effects of Commerce Group’s previous mining activities as a result of acid drainage from the abandoned mine. A 2006 study found that the river which runs through the town is 100,000 times more acidic than uncontaminated bodies of water in the same region.[1] The study also found levels of cyanide more than 10 times higher than the maximum allowed by the World Health Organization (WHO), as well as high levels of sulfates and dissolved metals. Many people use the water from the river for washing clothes and dishes, for making tortillas, and for their crops and livestock. According to a University of Ohio study, there are widespread reports of human health problems, ranging from chronic headaches to kidney diseases.[2] If anything, it is Commerce Group who should be paying for the toxic legacy they have left behind.
3. If Commerce Group is successful in this lawsuit, it could undermine the ability of all countries (including our own) to make laws for the benefit of their own people. This is not an isolated case; a Canadian company called Pacific Rim is pursuing a similar suit against the government of El Salvador for a mining claim in another part of the country. “Foreign investor protections,” such as those in CAFTA, put the profits of foreign companies over national sovereignty, democracy, and people’s well-being. Stopping the Commerce Group lawsuit, and similar lawsuits such as Pacific Rim’s, would be an important victory for people and the environment over corporate profits.
We the Undersigned Demand:
An End to the Commerce Group Lawsuit!
Cleanup of Past Mining Pollution!
Compensation for the Victims of Mine Pollution!
Respect for El Salvadoran Self-Determination!
U.S.-El Salvador Sister Cities |
Democracy Center |
Jamie Moffett Media Design & Production |
FOCUS Central America, Wichita KS |
Canadians Against Mining In El Salvador (CAMES) |
Barrio Nuevo |
Maryknoll Office for Global Concerns |
Friends of Chilama |
Lawrence-El Papaturro Friendship Committee, Lawrence, KS |
Caribbean & Latin America Support Project (CLASP), New Paltz, NY |
The SHARE Foundation |
The Atlantic Regional Solidarity Network |
Centro de Estudios sobre Inversión y Comercio, CEICOM |
Wisconsin John Muir Chapter Sierra Club |
Committee In Solidarity with the People of El Salvador, CISPES |
Mining Watch Canada |
Global Economy Project, Institute for Policy Studies |
Sister Parish Inc |
Milwaukee Clean Clothes Campaign |
Milwaukee Fair Trade Coalition |
Volunteer Missionary Movement |
Latin America Solidarity Committee-Milwaukee |
Toronto Forum on Cuba |
Hands Across Borders, Erie PA |
Romero Interfaith Center, Philadelphia PA |
MOFGA-CCR and CORDES Sistering Project |
Madison-Arcatao Sister Cities Project |
Community Action on Latin America, CALA |
Concord, NH-Agua Caliente El Salvador Sistering Project |
McGill Research Group Investigating Canadian Mining in Latin America |
Austin-Guajoyo Sister City Project |
Sister Parish Ministry Team of Wallingford United Methodist Church |
Coalition Québécoise sur les impacts socio-environnementaux de transnationales en Amérique Latine |
Groupe de travail Non à Pascua Lama – Montréal |
Chicago-Cinquera Sister Cities |
Center for Alternative Mining Development Policy, La Crosse, Wisconsin |
Wisconsin Resources Protection Council, Tomahawk, Wisconsin |
Power in Community Alliances, Bangor ME |
Wisconsin Network for Peace and Justice |
FMLN Minnesota |
Minnestoa Immigrants Rights Action Committee |
Good Shepherd Parish Central America Committee |
La Asociación para el Desarrollo de El Salvador, CRIPDES |
La Mesa Nacional Frente la Mineria Metalica |
La Asociación de Comunidades para el Desarrollo de Chalatenango, CCR |
Chicago Religious Leadership Network on Latin America (CRLN) |
School of the Americas Watch (SOA Watch) |
Amigos de San Isidro Cabañas, ASIC |
Asociación Desarrollo, Economico y Social-ADES Santa Marta |
Watertown-El Salvador Sister City Committee |
Saint Andrew Christian Church-El Higueral Sister Parish Project |
Arlington-Teosinte (El Salvador) Sister City Committee |
Radio Victoria, Cabañas El Salvador |
The New Jersey State-San Isidro and Los Amates Sister City Project |
Seattle CISPES |
Comité Ambiental de Cabañas |
The School Sisters of Notre Dame-Milwaukee Province Office of Global Justice & Peace |
Cambridge-San Jose Las Flores Sister City Project |
Voices on the Border |
St.Elizabeth Ann Seton El Salvador Mission Team |
Zoltan Grossman, Professor of Geography, The Evergreen State College, Olympia WA |
Metro NYC Trade Justice |
WORT Radio Madison |
Boston CISPES |
Alliance for Global Justice |
Campaign for Labor Rights |
Nicaragua Network |
Wisconsin Fair Trade Coalition |
9to5 National Association of Working Women |
St Louis Inter-Faith Committee on Latin America (IFCLA) |
Doctors for Global Health |
El Salvador Companion Committee of the Greater Milwaukee Synod of the ELCA |
the Sister Parish Committee of Decorah First United Methodist Church |
Mount Mary College |
St. Sebastian Parish, Milwuakee WI |
[1] Flaviano Bianchini, 2006. “Estudio Tecnico: Calidad de agua en la zona de explotacion minera de San Sebastian, municipio de Santa Rosa de Lima, departmento de La Union, El Salvador.”
[2] Cidia Cortes, 2010. “Analisis de Agua y su relacion con la salud y calidad de vida de los pobladores del Rio San Sebastain, en la zona de minas San Sebastian.”