El Salvador might be close to taking advantage of its previously untapped massive gold reserves. President Nayib Bukele recently highlighted the significance of these reserves on social media, stating that El Salvador potentially has the highest density of gold deposits in the world.
Bukele explained that previous studies only covered 4% of the area with these deposits, identifying 50 million ounces of gold, which represents almost four times the current gross domestic product (GDP) of the country. The potential reserves could exceed 8,800% of El Salvador’s GDP, Bukele added.
Leveraging these gold resources could transform El Salvador, allowing Bukele’s government to intensify its efforts in three key areas: creating thousands of quality jobs, funding the construction of more infrastructure projects, and incentivizing the development of local economies.
Bukele’s intentions clash with current legislation that prevents any private or state-owned institution from conducting metallic mining activities. The Metallic Mining Ban law, which passed in 2017 after being in the works for 11 years, also forbids the use of toxic chemicals, such as cyanide and mercury, in any processes linked to mining.
Nonetheless, Bukele’s ideas suggest a possible derogation of this law that would allow his administration to exploit these resources for his development plan, which includes prioritizing the economy in his second term.
He stated:
We are the ONLY country in the world with a total ban on metal mining, something that no other country applies. Absurd!
He proposed that this wealth be exploited responsibly, promoting unprecedented economic and social development for the Salvadorans.
Bukele has already invited international geologists to research the gold deposits and the exploitation potential of the entire formation, according to a recent article by Vaneck, which outlines the opportunities for investing in El Salvador.
Read more: Billion-Dollar Investment Firm Vaneck Highlights Bukele’s Bitcoin Gambit in El Salvador
