2023-11-29 01:03:22
– Largest copper mine in Central America to close
The Supreme Court of Panama declared the contract signed by the Panamanian state with a Canadian company for the management of the mine “unconstitutional”.
Published today at 02:03
The announcement was followed by celebrations in several parts of the country and in front of the court.
AFP
Panama’s President Laurentino Cortizo on Tuesday promised an “orderly and safe” closure process for Central America’s largest copper mine, shortly following the Supreme Court declared his concession contract with a company “unconstitutional.” Canadian mining industry.
“As soon as the formal communication of the judgment declaring the mining contract unconstitutional is received, it will be immediately published in the Official Gazette and the transition process will begin for an orderly and safe closure of the mine,” Laurentino Cortizo said in a televised address.
«Inconstitutionnel»
“Due to the impact on Panamanian society of the closure process”, each decision adopted “must be approached in a responsible, inclusive and participatory manner”, added the president, criticized for his “inaction” in the face of the blockages. The contract renewing the concession for Central America’s largest copper mine was declared “unconstitutional” by Panama’s Supreme Court on Tuesday.
“We have unanimously decided to declare unconstitutional the entire law 406” which governs the contract between the Panamanian state and the Canadian mining company First Quantum Minerals (FQM), indicated Maria Eugenia Lopez, president of the highest court of the country, announcing the decision taken following four days of deliberations between the nine members of the Court.
The announcement was followed by celebrations in several parts of the country and in front of the court and demonstrators began to remove some roadblocks erected for more than a month, according to local media. Opponents of this gigantic open-air mine, located 240 km from the Panamanian capital, contested the legality of the contract while deploring its potential impacts on the environment.
“Transcendental”
“It is a transcendental decision, not only for the future of Panama, but also for our defense before international courts,” ecologist Raisa Banfield told AFP; adding: “No foreign company can come here and brandish its millions at us and say that because it invests, it can do what it wants.”
The mining company reacted in a press release, ensuring that it had operated “from the beginning (…) in transparency and strict compliance with Panamanian legislation”. She adds that she has “heard the popular clamor” and remains “attentive to constructive dialogue” which “will allow her to define a course of action that satisfies this clamor”, but also “the legitimate interests and expectations” linked to the investment made.
The demonstrations, the largest in Panama since the fall of former dictator Manuel Antonio Noriega in 1989, accompanied by roadblocks, caused more than 1.7 billion dollars (1.5 billion francs) in losses to the sectors of agriculture, tourism and trade, according to professional organizations. The protest movement began on October 20, when Parliament approved the contract authorizing FQM to operate this mine located in the Caribbean zone of the country for another 40 years (20 years renewable).
Years “to get over it”
Signed in August between the government and FQM, this contract replaced the initial concession agreement, declared unconstitutional in 2017 for not having been concluded following a public call for tenders or popular consultation. The government indicated on Sunday that it had been informed by FQM of its intention to resort to international arbitration if the contract binding them was declared unconstitutional, and assured that it was “ready to defend national interests”.
FQM, which has invested more than $10 billion in the project, highlights that the mine generates some 50,000 jobs, contributes 5% of Panama’s GDP and that the contract provides for annual contributions to the State of at least 375 million dollars, ten times more than the previous agreement of 1997. The Chamber of Commerce called to accept the judgment and to prepare in a consensual and technical manner “an orderly closure” of the mine which, since 2019, has produced some 300 ‘000 tonnes of copper concentrate per year, representing 75% of Panamanian exports.
AFP
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