Mining looks set to return in El Salvador

Significance President Nayib Bukele, who championed the move, has claimed that El Salvador has gold reserves worth USD3tn. He has promised to kickstart the Salvadoran economy during his second term in office, but his options for doing so are limited by the poor state of public finances and deficits in areas such as infrastructure and human capital. Impacts China, which has invested heavily in Nicaraguan mining, may take an interest in El Salvador. Environmental degradation and social unrest could impact the tourism sector, which Bukele hopes to grow. Mining operations could complicate efforts to meet commitments under a debt-for-nature swap designed to clean up the Lempa River.