El Salvador’s President Proposes Revoking Mining Ban to Tap Into Gold Wealth

President Nayib Bukele is advocating for the lift of the mining ban to harness the country’s vast gold resources, claiming it could significantly boost the economy.

Bukele suggests redirecting the lost potential from mining toward environmental restoration, specifically to clean polluted rivers. According to government reports, about 95% of El Salvador’s rivers are contaminated, and he insists efforts should focus on their cleanup rather than restricting mineral extraction.

This proposed shift in policy stands in stark contrast to the actions of his predecessor, former president Salvador Sanchez Ceren. In 2017, Ceren established the mining ban in response to concerns from local communities about toxic substances like cyanide and mercury used in mining. These worries led to significant pressure against mining practices within the country.

Bukele, the first president to step outside the traditional political party framework since 1989, is utilizing his platform on X to highlight the economic advantages of the nation’s natural resources. Before his recent remarks, he shared various posts showcasing El Salvador’s gold potential. He referenced an uncited study that claims the country could hold the “largest gold deposits per square kilometer in the world.”

“God placed a gigantic treasure underneath our feet,” Bukele stated on X, further describing the mining ban as “absurd.” He argues that extracting just 4% of the country’s gold could yield $131 billion, a figure representing approximately 380% of El Salvador’s GDP.

He added, “If we responsibly use our natural resources, we can transform the economy of El Salvador overnight.” Nevertheless, his push to repeal the mining ban faces anticipated opposition based on historical responses from both his predecessor and other Central American nations.

Pedro Cabezas, leader of the Central American Alliance Against Mining, articulated the challenge. He stated, “It’s one thing to put a mine in the Atacama Desert (in Chile) and another thing to open an open-pit mine in Chalatenango.”

Should Bukele manage to lift the mining ban, it would mark yet another significant change during his presidency. In 2021, he made headlines by declaring bitcoin as legal tender, making El Salvador the first country to adopt this innovative approach.