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President Laurentino Cortizo of Panama has announced that the country will hold a referendum to decide whether to cancel a contract with Canadian miner First Quantum’s local unit. This decision comes after several days of protests by thousands of people who oppose the open pit copper mine project. The vote is scheduled to take place on December 17th, and the result will be binding.

The contract between Panama’s government and First Quantum’s local unit guaranteed an annual income of 5 million to the Central American nation. However, protesters have criticized the deal and the environmental impact of the copper mine. President Cortizo issued a decree on Friday rejecting all new mining projects, but critics argue that it would not affect the approved First Quantum contract.

In response to the protests, Minera Panama, the subsidiary of First Quantum, expressed concern after protesters on boats approached the international Punta Rincon port where the mine operates. They described these actions as “illegal and violent” and noted that they posed a significant threat to their operations and the safety of their workers. The contract between First Quantum and Panama was established in 1991.

The country’s main workers’ union has vowed to continue protesting until the contract is annulled. They believe that no maneuver will deceive the people and expect the referendum to be the ultimate decision-maker. The Cobre Panama mine contributes nearly 5% to Panama’s economy and accounted for about half of First Quantum’s EBITDA last year.

Sources:

– Valentine Hilaire and Elida Moreno, REUTERS

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