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El Salvador’s Congress overturned a total ban on metal mining to find new sources of economic growth, handing victory to President Nayib Boucle, despite criticism of the measure from environmental and religious groups.
The ban, the first of its kind in the world, was introduced in 2017 to protect the country’s water resources. Bukele, who came to power in 2019, called this “absurd.”
Bukele’s party and its allies hold 57 of the 60 seats in Congress, and all 57 voted to lift the ban while giving the Salvadoran government exclusive authority over mining activities.
Bukele, in his second term, has been one of the region’s most popular leaders, albeit controversial, and has focused on reviving El Salvador’s economy and attracting foreign investment. Citing unpublished research, he claimed El Salvador has gold reserves potentially worth $3 trillion, but experts are skeptical.
Limited exploration is underway in El Salvador. El Dorado, the most advanced of more than 20 pre-prohibition exploration projects, was once estimated to hold 1.4 million ounces of gold and would be valued at approximately $3.6 billion today, not including production costs. It corresponds to a considerable extent.
El Salvador’s golden belt crosses the northern provinces and the basin of the Lempa River, the main water source for this small and densely populated country.
Concerns about the water required for mining and the potential for contamination from cyanide, a toxic substance frequently used in gold mining, led civil society to call for a 10-year moratorium on mining in 2007, which was subsequently banned. followed.
The Catholic Church, a key figure behind the 2017 ban, appealed to the public to ensure that the ban is not overturned.
A recent national poll found that 59.2% think mining is not appropriate for El Salvador, while 23% think it is.
Bukele said the mining would be “modern and sustainable” and that the gold would “transform El Salvador.”
Gold prices rose to more than $2,600 an ounce, hitting an all-time high in October.
During his first term, Bukele launched a crackdown on gangs, using emergency powers to jail 82,000 suspects without trial. The murder rate fell and Bukele’s popularity soared.
He received 85% of the vote in February following a court decision that cleared the way for him to run again, despite some legal experts saying the country’s constitution barred him from running for re-election. was re-elected.
El Salvador recently agreed to reduce its budget deficit and increase its foreign exchange reserves, reaching an agreement with the IMF for a $1.4 billion loan. Under the agreement, the country agreed to make accepting Bitcoin voluntary for the private sector.
