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A subsidiary of Canada’s First Quantum Minerals has expressed concern over violent and illegal protests that have erupted in Panama, posing a threat to its operations and the safety of its staff. The protests, which began earlier in the week and have spread across the capital city and other provinces, are in response to the potential environmental impact of Cobre Panamá, the company’s copper mine.

The protesters are demanding the repeal of Law 406, a mining concession that grants First Quantum the right to mine copper for 20 years, with an option for an additional 20 years. In addition, they are calling for the gradual shutdown of the Cobre Panamá mine.

In response to the social pressure, President Laurentino Cortizo has announced a ban on new metal mining concessions and expressed willingness to discuss First Quantum’s mining contract. The Panamanian Supreme Court has also stated that it will consider a lawsuit alleging that the contract violates the constitution. The court will issue an opinion on the lawsuit within 10 business days before proceeding to written arguments and ultimately reaching a ruling.

Last year, the Panamanian government ordered First Quantum to halt operations at Cobre Panamá during contract negotiations, causing substantial financial losses. The mine, which began commercial production in 2019, is First Quantum’s primary source of revenue and contributes to around 1.5% of global copper output.

The complex includes two open pit mines, a processing plant, power stations, and a port, and has the capacity to process 85 million tonnes of ore annually, producing over 300,000 tonnes of copper per year. The mine also yields gold, silver, and molybdenum.

The outcome of the protests and the legal case against First Quantum will have significant implications for the future of the mine and mining operations in Panama.

Sources:

– Canada’s First Quantum Minerals

– Local media in Panama

– Panama’s Supreme Court

– Official Gazette of Panama

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