Panama Bans New Metal Mining Permits Amid Protests; Controversial Canadian Project Survives
The president of Panama Laurentino Cortizo signed into law a national moratorium on issuing new metal mining permits after weeks of mass protests in the country against a controversial Canadian project.
The legislation of this Central American state also explicitly banned the renewal of the existing concessions after their terms expire. This metal mining ban will continue for an unspecified period.
On November 2, the Panama National Assembly passed the bill. However, it made a modification to it and retained a controversial mining contract of Canadian First Quantum Minerals Limited under Law 406. Notably, Canada dominates the Panamanian mining industry.
Law 406, enacted on October 20, 2023, by the National Assembly of Panama, approved the revised contract for the Cobre Panama mine agreed between the Minera Panama and the Government of Panama.
Notably, over the last two weeks, protests against Law 406 cost Panama’s tourism industry $200 million. The significant cancellations affect the sector, the Panamanian Hotel Association (Apatel) said. The association emphasizes the urgency of restoring national normalcy and peace.
Controversial Canadian Mining Contract Survives
The newly enacted law allows Minera Panama, a subsidiary of the Canadian First Quantum to continue open-pit copper mining in Colon.
This contract has raised questions and concerns among those who had been protesting against the neoliberal government of President Cortizo for supporting this project. Despite the controversy surrounding this contract, the government decided not to cancel or terminate this specific mining concession. The protests still continuing nationwide, drawing support from Indigenous groups and unions across education, construction, and healthcare sectors.
The contract guarantees $375 million annually for 20 years, with another period of possible extension. The contract sparked significant environmental concerns and public protests since its approval. The protests have inflicted multi-million dollars of losses to the national economy.
Environmental Concerns
The environmentalists express serious concern and criticize the permission of the company to continue open-pit operations for copper mining. They say that it is a threat to the surrounding dense jungle and local drinking water supply. They believe that the government did not consider its negative repercussions on the community and environment.
In July 2023, Human Rights Watch criticized the Panama government’s inadequate support for indigenous communities affected by climate-induced homeland destruction.
Legal experts, however, cautioned about potential legal liabilities if the contract were revoked. They suggest that the liabilities could be avoided if the Supreme Court deems the original contract as unconstitutional, as alleged in eight ongoing cases.
