Panama Mining Contract Battle: In response to days of impassioned protests against a contentious open-pit copper mine project, President Laurentino Cortizo declared on Sunday that Panama would conduct a referendum to determine the future of the contract with the local unit of Canadian mining company First Quantum.
Set for December 17, the outcome of this referendum will be binding, according to President Cortizo’s video message. He stated, “I’ve respectfully listened to those who oppose the contract with Minera Panama,” using the name of First Quantum’s local unit. Neither First Quantum nor Minera Panama immediately provided a response to requests for comment.
The contract, which Panama’s government and the mining company had negotiated, aimed to secure an annual income of $375 million for the Central American nation while permitting First Quantum’s local unit to operate the Cobre Panama project, an open-pit copper mine, for a minimum of 20 years.
Protesters have voiced concerns about both the contract and the environmental consequences of the mine, even after President Cortizo issued a decree on Friday rejecting all new mining projects. Critics argue that this move would not affect the previously approved contract with First Quantum.
Read More: Panama Mining Shockwave: No New Projects Allowed
In a separate incident, Minera Panama expressed alarm after protesters on boats approached the international Punta Rincon port where their operations are based. In a statement, the company called these actions “illegal and violent” and emphasized the threat they posed to their operations and worker safety.
President Cortizo’s office, in a statement released late Sunday, noted that the contract had its origins back in 1991. Following President Cortizo’s announcement, Panama’s primary workers’ union made it clear that their protests would continue until the contract was annulled. A union representative stated, “There’s no maneuver in this fight that will deceive the people.”
The Cobre Panama mine plays a significant role in Panama’s economy, contributing to nearly 5% of the country’s economic activity. Last year, it represented about half of First Quantum’s EBITDA, making the outcome of the upcoming referendum a matter of considerable importance where economic interests and environmental concerns intersect.
Our Reader’s Queries
What was the ruling on Panama mining?
On December 2nd, it was reported by Reuters that Panama has declared Canadian mining company First Quantum’s contract for an open-pit copper mine in the country as unconstitutional. This ruling was published in the official gazette on Saturday.
What will be the outcome of Panama’s mine dispute?
Following a ruling by Panama’s Supreme Court in November that deemed the law governing the operating license invalid, President Laurentino Cortizo has ordered the closure of the mine.
What’s happening in Panama mining?
Panama’s Supreme Court has finally put an end to the controversial mining contract. On November 30, the court declared the contract unconstitutional, citing 25 provisions that violated the constitution. As a result, the mine will be shut down. This ruling marks a significant victory for those who have been fighting against the mining project.
Is Panama not willing to expand first quantum’s copper mine operations?
Panama’s President, Laurentino Cortizo, has announced that his government will be moving forward with the closure of First Quantum’s copper mine. This decision comes after the country’s Supreme Court deemed the Canadian miner’s contract to be unconstitutional. Despite the potential impact on the mining industry, the government is committed to upholding the law and ensuring that all contracts are legally sound.