Background on the Situation
José Raúl Mulino, the President of Panama, has stated that the reopening of a Canadian-owned open-pit copper mine is not imminent. The mine, which ceased operations in 2023 due to a constitutional ruling by Panama’s Supreme Court following widespread anti-mining protests, remains closed despite former employees advocating for its resumption.
The Mine’s Impact and Significance
Located on the Caribbean coast, this mine produced approximately 300,000 tonnes of copper concentrate annually, accounting for 75% of Panama’s exports and 5% of its national GDP. It directly and indirectly employed around 37,000 people.
President Mulino’s Stance
During a press conference, President Mulino emphasized that the decision regarding the mine’s future is not near and is a complex matter with numerous aspects to reconsider. He acknowledged the former employees’ concerns but stressed that any decision would prioritize national interests over economic or mining company interests.
“I want an agreement with the state exercising its legitimate ownership of that land, those minerals, and our right as a nation to exploit them without involving third parties,” Mulino explained.
Former Employees’ Perspective
On the previous day, several unions and former employees of the mine requested the resumption of operations, citing the country’s high unemployment rate and the potential for thousands of job recoveries. Ilka Camargo, a former mine worker, told AFP, “There is an unemployment crisis in the country, and if the mine’s operations are reactivated, many direct jobs could be regained.”
Current Economic Situation in Panama
Panama’s economy grew by 2.9% in 2024, a significant decrease from the 7.4% growth rate in the previous year when the mine was still operational. The unemployment rate has risen to 9.5%, with half of the jobs being informal.
Since 2023, a mining moratorium has been in effect, and many recent protests against the government have denounced mining as an environmental polluter.
Key Questions and Answers
- What is the current status of the copper mine in Panama? The mine remains closed following a constitutional ruling by Panama’s Supreme Court in 2023 due to widespread anti-mining protests.
- What is President Mulino’s position on the mine’s reopening? President Mulino has stated that a decision regarding the mine’s future is not imminent and will prioritize national interests over economic or mining company interests.
- Why are former employees advocating for the mine’s resumption? Former employees argue that reactivating the mine could help alleviate Panama’s high unemployment rate and recover thousands of jobs.
- What is the current economic situation in Panama? Panama’s economy grew by 2.9% in 2024, with an unemployment rate of 9.5%. The country faces challenges with informal employment.
- What are the concerns regarding mining in Panama? Many protesters accuse mining of environmental pollution, leading to a mining moratorium since 2023.
