Mining Under Threat

El Salvador's President Mauricio Funes has announced that he intends to implement a total ban on mining, undermining the generally pro-business policy stance that places El Salvador sixth in Latin America in the market orientation component of our business environment ratings. Added to his refusal last year to recognise mining permits offered by previous administrations - which led Canadian company Pacific Rim Mining to seek international arbitration last year to recover US$77mn of investment - we caution that the operating environment is likely to remain distinctly hostile for the industry over the medium term.

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