El Salvador

ICSID Tribunal Finds in Favour of Government of El Salvador in Arbitration Process

Canada NewsWire
MELBOURNE, Oct. 14, 2016
/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES./
MELBOURNE, Oct. 14, 2016 /CNW/ - OceanaGold Corporation (TSX/ASX/NZX: OGC) (the "Company") has been advised that the arbitration tribunal constituted by the World Bank's International Centre for Settlement of Investment Disputes ("ICSID") has found in favour of the Government of El Salvador (the "Government") in its dispute with an OceanaGold indirect subsidiary company, Pac Rim Cayman LLC. ICSID granted an award of US$8 million to the Government of El Salvador to cover its legal fees and costs.
OceanaGold inherited the arbitration process when it acquired Pacific Rim Mining Corp. in November 2013 and the Company has stated from the beginning that its goal was to reach an amicable resolution of this matter which would benefit all parties.
Whilst disappointed, OceanaGold will review the ICSID's ruling in detail before evaluating the next steps related to its El Salvador business unit. The Company believes that a modern resource industry that operates in a safe and sustainable manner and within internationally recognised best practices has the potential to unlock a sustainable and multi-decade development opportunity for the Republic of El Salvador. However, the Company recognises that the Government will need to take positive and definitive steps towards establishing a stable business environment if it wishes to attract foreign investment to establish this opportunity.
As a world class producer for over two decades, Canadian-Australian mining company OceanaGold has been a valued member of the communities where it operates, including environmentally sensitive areas such as New Zealand, the Philippines, and the United States. Over this time the Company has formed a strong track record of establishing itself as a partner and employer of choice that works in a spirit of cooperation and respect with its stakeholders in a sustainable and ethical way.