El Salvador’s Gold Conundrum: Untapped Wealth or Environmental Risk?
El Salvador, the first country to ban metals mining, might be sitting on untapped gold reserves worth an estimated $3 trillion, according to President Nayib Bukele. This staggering figure dwarfs the nation’s current GDP by over 8,800% and raises questions about whether the ban on mining should be reconsidered.
A Hidden Treasure
In a recent speech, Bukele revealed that El Salvador is not just rich in gold but also holds deposits of gallium, tantalum, tin, and other materials critical to modern industries. These resources could position the nation as a key player in the 4th and 5th industrial revolutions.
Bukele argued that harnessing these resources could fund significant projects, such as cleaning up the country’s heavily polluted rivers. According to government data, 95% of El Salvador’s rivers are contaminated. “God placed a gigantic treasure underneath our feet,” Bukele declared, calling the 2017 mining ban “absurd.”
A Controversial History
The ban was introduced by former President Salvador Sanchez Cerén, a left-wing leader, after pressure from rural communities concerned about the environmental impact of mining. Chemicals like cyanide and mercury used in extraction processes posed significant risks to water sources and ecosystems.
Bukele, however, sees the ban as a missed economic opportunity. He claims that mining just 4% of the country’s gold could generate $131 billion, equivalent to 380% of El Salvador’s GDP. “If we make responsible use of our natural resources, we can change the economy of El Salvador overnight,” he stated on social media.
Divided Opinions
Despite the potential economic benefits, any move to lift the ban is expected to face fierce opposition. Environmental activists and rural communities remain deeply skeptical. Pedro Cabezas, a leader of the Central American Alliance Against Mining, pointed out the challenges of mining in densely populated and ecologically sensitive areas. “It’s one thing to put a mine in the Atacama Desert (in Chile) and another to open an open-pit mine in Chalatenango,” Cabezas explained.
Read: El Salvador’s Bitcoin Revolution: From Poverty to Prosperity
A Pattern of Bold Moves
This isn’t the first time Bukele has pushed for radical economic changes. In 2021, he made bitcoin legal tender, making El Salvador the first country to do so. Whether his vision for mining will follow a similar path remains to be seen.
The debate over El Salvador’s mining ban encapsulates a broader dilemma: how to balance economic development with environmental and social responsibility. As the nation weighs its options, the world watches to see if Bukele’s plans for “responsible” resource extraction can truly strike that balance.
