SAN ISIDRO, El Salvador — When a Central American gold rush brought a Canadian mining company here a few years ago, the company promised to stake a claim that would be as green as the lush hills.
The copious amounts of water needed would come only from the rain, not from the nearby Rio Lempa that is this country’s lifeline, the company said. Cyanide, a toxic chemical used to extract gold embedded in rocks, would be dispersed naturally, dried by sunlight in vast double-lined pools. Several hundred jobs could be created here, in one of the country’s poorest regions.
“No other mine in North America has gone to this level of environmental protection,” said Tom Shrake, the chief executive of the Canadian company, Pacific Rim, which is seeking to tap a vein that it says could be worth hundreds of millions of dollars.
But when the government of El Salvador, facing mounting public concern over the consequences of mining, failed to grant the company the final permit it needed, Pacific Rim sought to extract a different kind of green: $77 million from the nation’s treasury as compensation for lost profits.