El Salvador Industrial Materials Metallic Mining Law

El Salvador has enacted the Metallic Mining Law, creating opportunities for U.S. companies with expertise in the commercialization, transportation, and exportation of raw materials extracted or processed during the mining cycle.  The development of mining activities also opens avenues for U.S. providers of advanced mining technology and equipment.

On December 23, 2024, El Salvador’s Legislative Assembly approved the General Law on Metallic Mining, ending a seven-year ban. According to the law, the government holds exclusive authority to explore, exploit, extract, and process all resources obtained from metallic mining.  Additionally, the law allows the government to create state-owned enterprises or mixed economy companies to conduct mining activities.

The General Directorate of Energy, Hydrocarbons, and Mines will issue regulations to implement the law, while the Ministry of Environment and the Water Authority will oversee compliance with environmental conditions and the preservation of water resources associated with metallic mining activities.

Companies involved in the commercialization, transportation, and exportation of raw materials extracted or processed during the mining cycle must obtain authorization and permits from the Directorate. The use of mercury and other unauthorized substances is strictly prohibited. Additionally, the extraction and commercialization of radioactive substances are restricted to state operations.

The enactment of this law represents a significant shift in El Salvador’s approach to metallic mining, presenting new opportunities for U.S. companies specializing in relevant industries.

This law went into effect fifteen days after it was published in El Salvador’s Official Gazette on December 23, 2024. A copy of the law is available in the Official Gazette.

For more information, contact the U.S. Commercial Service Office in San Salvador at office.sansalvador@trade.gov