News Americas, WASHINGTON, D.C., Fri. Mar. 18, 2011: El Salvador has won in a dispute brought by U.S. miner Commerce Group.
The Washington-based International Center for Settlement of Investment Disputes this week agreed with the El Salvador government’s argument that it lacked jurisdiction to hear the case.
The Commerce Group has mined precious metals in the Central American country since 1968. But El Salvador canceled Commerce’s environmental permits in late 2006 and did not renew its exploration licenses.
Commerce argued that those measures constituted a breach of the The Dominican Republic – Central America Free Trade Agreement treaty and decided to submit the dispute to ICSID for arbitration.