El Salvador could potentially tap into a $3 billion gold reserve, according to President Nayib Bukele. In a recent message shared on X, Bukele outlined that the country sits atop one of the richest gold deposits in the world, with reserves concentrated in the Pacific Ring of Fire, an area renowned for its volcanic activity and mineral wealth.
«The gold deposits in El Salvador are among the highest density per square kilometer globally,» Bukele wrote. He noted that studies conducted on just 4% of the identified gold-rich area revealed 50 million ounces of gold, valued at approximately $131.5 billion. This alone represents 380% of the nation’s current GDP. If fully exploited, the total value could exceed $3 trillion—more than 8,800% of El Salvador’s GDP.
The president emphasized that with modern and environmentally sustainable mining practices, the gold sector could generate thousands of quality jobs, stimulate local economies, and fund vital infrastructure projects throughout the country.
However, Bukele pointed out a significant hurdle: El Salvador is currently the only nation globally with legislation that bans metallic mining. In 2017, the country passed the Law on the Prohibition of Metallic Mining, which strictly prohibits exploration, extraction, and processing of metallic minerals, including gold. The law, enacted during the presidency of Salvador Sánchez Cerén, was designed to prevent the use of harmful chemicals like cyanide and mercury in mining operations.
Bukele expressed frustration over the existing legal framework, lamenting that El Salvador’s gold resources remain untapped due to the ban. Despite the potential economic benefits, the government faces significant opposition to lifting the ban, which reflects concerns over environmental and social impacts.
While the country’s gold resources remain largely untapped, Bukele’s remarks highlight the potential for a transformative shift in El Salvador’s economy if the mining restrictions are reconsidered in the future.