THE IMPACTS OF LARGE-SCALE MINING IN LATIN AMERICA

The report analyzes 38 ISDS cases brought by mining companies against Latin American states, highlighting a systemic bias that favors corporate profits over human rights and environmental laws. It documents how these suits often target government measures resulting from community resistance or environmental regulations, creating a 'chilling effect' on public policy. The document details specific cases in countries such as Colombia, El Salvador, and Venezuela, and proposes a fundamental shift toward a legal framework that prioritizes human rights and environmental protection over investor rights.

• Mining companies frequently use the ISDS system to challenge government measures that protect the environment or respond to community resistance. In the study of 38 cases, over two-thirds involved some level of community resistance.
• Canadian-domiciled firms are disproportionately represented in these legal actions, reflecting Canada's role as a primary source of equity financing for the global mining industry.
• The report identifies a 'chilling effect' where the threat of massive arbitration awards discourages governments from implementing public interest laws or following human rights mandates. For example, the Guatemalan government cited potential arbitration as a reason for not suspending the Marlin mine despite orders from the Inter-American Commission on Human Rights.
• Many suits are brought by 'junior' exploration companies that have no operating mines, often backed by third-party funders who profit from financial awards.
• The 'Indirect Expropriation' clause is the most frequently invoked rule, allowing companies to sue over regulations that reduce the value of an investment rather than just the physical taking of property.
• In El Salvador, a long-term struggle against suits by Commerce Group and Pacific Rim Mining (OceanaGold) eventually led to a national law prohibiting metallic mining passed in March 2017.
• Colombia faces significant financial risk from ISDS, with threatened or actual claims from six mining companies totaling approximately US$18 billion, some specifically targeting protections for páramo ecosystems.
• Venezuela has been the most frequently sued country in the region, with supranational tribunals awarding US$2.9 billion to three mining companies alone.
• The report proposes several systemic reforms, including the abolition of 'Indirect Expropriation' definitions, requiring disputes to be heard in national courts first, and prohibiting extractive industries from using ISDS entirely.

APA

Center for International Environmental Law (2019). THE IMPACTS OF LARGE-SCALE MINING IN LATIN AMERICA. https://www.ciel.org/wp-content/uploads/2019/05/ISDS-Report_final.pdf

Chicago

Center for International Environmental Law. THE IMPACTS OF LARGE-SCALE MINING IN LATIN AMERICA. 2019. https://www.ciel.org/wp-content/uploads/2019/05/ISDS-Report_final.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=THE IMPACTS OF LARGE-SCALE MINING IN LATIN AMERICA |date=April 2019 |url=https://www.ciel.org/wp-content/uploads/2019/05/ISDS-Report_final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2019impacts, author = {{Center for International Environmental Law}}, title = {{THE IMPACTS OF LARGE-SCALE MINING IN LATIN AMERICA}}, institution = {Center for International Environmental Law}, year = {2019}, month = apr, url = {https://www.ciel.org/wp-content/uploads/2019/05/ISDS-Report_final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }