On Monday, the General Assembly of El Salvador, controlled by President Bukele’s party Nuevas Ideas, passed a new mining law that repeals the metallic ban present in the previous law. The recently passed General Mining Law now gives the Salvadoran state a monopoly on metallic mining activities, establishing that it might create institutions for this task, or authorize consortiums where it possesses a stake.

This opens the door for foreign companies to come to the country and extract these riches, by creating mixed companies with state participation. Bukele had hinted at this development before, stating that the former regime forbidding the exploitation of these resources was “absurd,” given that El Salvador was the only country with this stance.

According to Bukele’s data, the country is sitting on top of a $3 trillion gold stash that could be used for improving its economic standing. The new law includes this consideration as part of its justification, alleging that “it is imperative that the state make rational use of the wealth available in its territory and use it to improve the quality of life of the population in general while respecting the environment.”

Read more: El Salvador Discovers $3 Trillion Gold — Will It All Go Into Bitcoin?

The regulation also aims to be environment-friendly, banning substances like mercury commonly used in these processes. Nonetheless, this action has drawn the ire of environmentalists and Bukele’s criticism, who remarked that the impact of the upcoming mining acceleration won’t be free.

Andrew McKinley, an environmentalist, stated that due to the particular state of El Salvador’s gold reserves, the amount of work and water needed for its extraction makes it unfeasible. The new law has the potential to “turn El Salvador into the Moon with its craters everywhere in a very short period,” he stressed.

Others expressed disbelief at the gold reserve data presented by Bukele. Pedro Cabezas, coordinator of Acafremin, a Central American anti-mining organization, stated that while there is gold in El Salvador, these numbers might be the product of official manipulation. “Knowing the president’s announcements, we would not be surprised if he exaggerates the numbers,” he assessed.

Bukele has invited foreign international geologists to examine El Salvador’s gold deposits and extraction opportunities.

Read more: Bukele Aims to Tap Into the Massive Potential of Salvadoran Gold Reserves

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