Background on the Situation
José Raúl Mulino, the President of Panama, has initiated contacts to reopen Cobre Panamá, the largest open-pit mine in Central America. This move comes despite an existing mining moratorium approved by the Congress and opposition from environmental groups.
The Mine’s History
Cobre Panamá, operated by Canadian company First Quantum Minerals (FQM), was shut down in November 2023 when Panama’s Supreme Court declared the concession contract unconstitutional amid anti-mining protests that partially paralyzed the country.
President Mulino’s Plan
To boost Panama’s economy, President Mulino aims to reopen Cobre Panamá, located near the Caribbean coast. However, he has not disclosed specifics on overcoming legal obstacles.
“We have started establishing the necessary contacts… This mine belongs to Panama…, and Panama will operate it with a technical operator,” Mulino stated during his weekly press conference.
“It will be Panama’s operation, not a contract with anyone else,” he added, emphasizing that the reopening would be “prudently done, within the law, and for economic benefit that is desperately needed.”
Environmental Groups’ Response
Panama has a moratorium prohibiting new metal mining concessions, approved by Congress in 2023 due to environmentalists’ protests against FQM’s alleged contamination.
The environmental groups that organized the protests reject the reopening and threaten to take to the streets again, accusing Mulino of siding with the company.
“Mulino cannot reopen the mine without violating the Constitution, the Supreme Court’s ruling, existing legal frameworks, and public will,” Raisa Banfield, leader of Panama Sustainable Foundation, told AFP.
Legal and Economic Context
After suspending international arbitration seeking $20 billion in compensation for the mine closure, FQM and the Panamanian government have expressed willingness to negotiate a possible resumption of activities.
Cobre Panamá, operational since 2019, produced approximately 300,000 tonnes of copper concentrate annually, accounting for 75% of Panama’s exports and 5% of its GDP. It also directly and indirectly employed around 37,000 people.
Key Questions and Answers
- Who is President José Raúl Mulino? He is the current President of Panama.
- What mine is he trying to reopen? Cobre Panamá, operated by Canadian company First Quantum Minerals (FQM).
- Why is there opposition to reopening the mine? Environmental groups accuse FQM of contamination and argue that reopening the mine would violate existing legal frameworks, court rulings, and public will.
- What is the current status of the mine? The mine was shut down in November 2023 due to a court ruling declaring the concession contract unconstitutional.
- What were the mine’s contributions to Panama’s economy? Cobre Panamá produced around 300,000 tonnes of copper concentrate annually, representing 75% of Panama’s exports and 5% of its GDP. It also directly and indirectly employed approximately 37,000 people.
