By Robin Oisín Llewellyn / Mongabay

On hot days the broken stone and dried up silt from the San Sebastian mine in Eastern El Salvador bake in the sun. The slew of refuse is freckled with rock stained bright blue with cyanide, open to the elements that on rainier days will wash it downhill into the Rio San Sebastian below.

The openings of passages into the mine dot the mountainside, and further downhill a bright orange stream with a chemical stench flows into another. The American Commerce Group ceased operating here in 1999 but sought to return when the price of gold began its current escalation. After a Centre for Investigation of Investment and Commerce study found the local river to be 100,000 times more acidic than the area’s uncontaminated water, and cyanide levels to be ten times above safe levels, Commerce Group’s environmental permit was revoked. The company is subsequently suing the Salvadoran government for $100 million through the Central American Free Trade Agreement.

Rising concern over the environmental impact of mining led both presidential candidates in the 2009 elections in El Salvador to pledge to suspend mining operations, a promise kept by current president Mauricio Funes. To prevent further legal cases, which are already draining millions from the country’s coffers, the Salvadoran legislature is considering a special law suspending administrative procedures related to the exploration and exploitation of metallic mining concessions.

Salvadoran environmentalists, in turn, are urging their government to go beyond the suspension of mining projects, and instead ban metallic mining altogether. Thousands of demonstrators marched through the capital this month to urge parliament to sign a law that would enshrine a “human right to water,” which they said would make it impossible to grant mining permits.

In a presentation outside the Salvadoran Legislative Assembly last week, El Salvador’s Human Rights Ombudsman Oscar Umberto Luna gave his support to a complete ban. Luna said that El Salvador’s environmental, climatic, institutional, social and economic conditions meant that it would not be viable for the “metallic mining industry to pursue its extractive activities without risk to the health and living conditions of the Salvadoran People and the resources on which they rely.”

The Ombudsman further urged that “the different state institutions must prioritize the human rights of the population, and keep in mind that true development pursues the improved overall quality of living of the population, not just economic profit.”

A law against mining would transform the country’s legislative framework towards foreign investment. Canadian group Pacific Rim is demanding $77 million to recoup its investments at its El Dorado concession in the northern province of Cabañas, claiming that the government violated the country’s 1999 investment law by denying it a license to extract gold and silver. The investment law allows disputes between foreign investors and the state to be taken outside of the country and decided by the World Bank’s International Centre for the Settlement of Investment Disputes (ICSID).

“Cyanide is not a vitamin”