Panama Mining Shockwave: In a surprising move, President Laurentino Cortizo of Panama announced a ban on all new mining projects, sending shockwaves through the industry. This bold decision extends not only to future mining endeavors but also to projects currently seeking permits. The President declared, “All of them will be rejected,” in a statement that rocked the mining world.
This decision comes hot on the heels of President Laurentino Cortizo’s endorsement of a contentious contract that grants a two-decade extension for operations at the significant Cobre Panama copper mine. This move, however, has ignited a firestorm of protests and calls for the cancellation of the contract, which critics argue will have severe environmental repercussions.
The new agreement with Canada’s First Quantum, the parent company of the local unit overseeing Cobre Panama, guarantees the Panamanian government a minimum of $375 million in annual revenue from the project. In exchange, First Quantum gets the green light to continue mining for at least another 20 years, with the possibility of further extensions.
Protesters have taken to the streets in droves, expressing their dissatisfaction with the deal and the environmental toll of the massive mining operation. Thousands have demanded the withdrawal of the contract, sparking a growing movement against it.
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The country’s Economy Minister, Hector Alexander, has voiced his support for the contract, emphasizing Panama’s status as a mining nation. He argues that without the economic boost from the mine, the country’s growth would be meager, in stark contrast to the government’s estimated robust 6% growth rate. Notably, the Cobre Panama mine contributes to nearly 5% of Panama’s economy.
However, the battle isn’t over. Panama’s highest court has agreed to consider a second lawsuit challenging the contract, adding a legal dimension to the controversy. Protests have escalated, with demonstrators erecting road blockades to exert pressure on authorities, leading to the suspension of classes nationwide earlier this week.
In the midst of this turmoil, Edison Broce, a lawmaker who opposes the contract, has forecasted a political reckoning in the upcoming elections. He calls on President Cortizo and his government to heed the voices of the protesters, signaling the high stakes of this contentious mining decision.
Our Reader’s Queries
What is happening in Panama mining?
Following a Supreme Court ruling that deemed the contract of a giant copper mine owned by Canada’s First Quantum Minerals Ltd. unconstitutional, Panama’s government has announced plans to shut down the mine. This decision comes after weeks of anti-mining protests that have caused disruptions to the country and forced First Quantum to cease operations.
What is the mining dispute in Panama?
Panama’s Supreme Court has made a groundbreaking decision by declaring the legislation that granted a Canadian copper mine a 20-year concession as unconstitutional. This ruling has been welcomed by thousands of Panamanian activists who had been protesting against the project, citing concerns about the damage it would cause to a forested coastal area and the threat it posed to the water supply. This decision is a significant victory for the environment and the people of Panama.
How much did the Cobre Panama mine cost?
In 2019, Cobre Panama commenced production after a massive investment of US$6.8-billion by the company. This colossal mine is the largest one owned by the company.
What is the Panama Canadian deal?
The Canadian copper mine in Panama has been at the center of environmental protests, and the country’s Supreme Court has now declared its 20-year concession unconstitutional. This unanimous ruling is a significant victory for those who have been fighting against the mine’s operations. The decision highlights the importance of upholding environmental regulations and protecting the rights of local communities.