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Costa Rica Wins Dispute with Infinito Gold
Costa Rica announced on Monday that an international tribunal ruled in its favor in a dispute with Canadian mining company Infinito Gold regarding the cancellation of a gold concession in 2010 on environmental grounds.
The presidency released a statement saying, “The government of the republic is pleased to inform the country that Costa Rica has won the case brought by Infinito Gold.”
Background of the Dispute
Infinito Gold had sought nearly $400 million in compensation from Costa Rica through the World Bank’s International Centre for Settlement of Investment Disputes after the cancellation of the mining contract at Crucitas in Cutris de San Carlos near the Nicaraguan border.
The Costa Rican Congress prohibited open-pit mining at Crucitas in 2010 following the annulment of Infinito Gold’s contract by a local court. The contract, awarded in 2008 by former president Oscar Arias, allowed mining on a piece of land containing primary forest, including the country’s last remaining 191 hectares.
Decision and Environmental Concerns
The tribunal ruled against awarding damages to Infinito Gold Ltda, citing the inappropriateness of the claim. Environmentalists and politicians raised concerns about the environmental impact and irregularities in the permit issuance, leading to the contract’s cancellation in 2010.
Illegal miners, mainly of Nicaraguan origin, have been extracting gold from the area using hazardous chemicals like mercury and cyanide, despite the ban on mining activities.
Future Actions
The presidency announced plans for a “special police operation” to combat illegal mining activities in the area starting from Tuesday.
Additional Insight
This case highlights the importance of balancing economic development with environmental conservation. Costa Rica’s stance on protecting its natural resources sets a precedent for other nations facing similar challenges in sustainable development.
