OceanaGold mulling options for El Salvador project

- Monday, October 17, 2016

OceanaGold mulling options for El Salvador project

OceanaGold is considering options for its El Salvador division after arbitrators dismissed a claim against the country's government.

The World Bank's International Centre for Settlement of Investment Disputes (ICSID) ruled against a claim for compensation related to El Salvador's denial of a mining license for the El Dorado gold-silver project.

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The case was filed in 2009 by Pac Rim Cayman, a subsidiary of Pacific Rim Mining, acquired by OceanaGold in 2013. The company was seeking US$315mn in compensation, according to a release at the time.

The ICSID ordered Pac Rim Cayman to pay US$8.0mn in legal costs to El Salvador.

Melbourne-based OceanaGold said it was disappointed at the decision and planned to review the ruling before evaluating next steps for its El Salvador business unit.

El Dorado has a measured and indicated resource of 1.30Moz gold and 9.48Moz silver.

The ruling was described as a victory for the people of El Salvador by presidential spokesman Eugenio Chicas.