PANAMA CITY, Panama (AP) — In a significant move for the economy, Panama’s newly installed government is reopening discussions about the controversial Cobre Panamá copper mine, a year after the Supreme Court halted its operations. The potential revival of this large-scale project has sparked renewed lobbying from business groups eager to see the mine's return to activity under President José Raúl Mulino’s administration. With the discussions set to commence next week, the stakes couldn’t be higher.
The Cobre Panamá mine, which was halted due to an unconstitutional government concession ruling, accounted for nearly 5% of the nation’s GDP during its final year of operation. Mulino has ordered the power plant associated with the mine to restart operations and plans to sell approximately $250 million worth of copper concentrate currently stored at the mine.
“On what basis can I say, as president of the republic, ‘goodbye to the mine, there won’t be a mine because five people who don’t pay a payroll don’t want a mine?’” Mulino remarked, indicating his inclination towards the mine’s reopening.
The situation took a turn in March 2023 when Panama’s Congress reached an agreement with the Canadian mining company First Quantum to extend operations for at least 20 years, amidst protests and concerns regarding the environmental impact. However, on November 28, 2023, the Supreme Court ruled that the concession was unconstitutional, leading to a suspension of operations and inciting widespread protests across the country. The mine also faced a moratorium on metal mining shortly before this ruling.
Despite the restart pushing forward, voices of dissent remain strong among various environmental and civic groups. Edgardo Díaz, a vendor who previously supplied food to mine workers, expressed support for reopening, stating, “We asked that the mine be reopened.” Conversely, local resident Abelisario Rodríguez warned against its revival, saying his community still lacks essential services such as electricity, clean water, and health facilities despite the mine’s previous productivity.
Rodríguez voiced skepticism regarding the mine's promises for community development, drawing parallels to mining operations in countries like Chile and Peru. “We don’t want that for our future generations,” he added.
On the other side, Manuel Aizpurua, head of Cobre Panamá, echoed the urgency of the situation, saying, “Nature is attacking these installations and this equipment,” underscoring a critical deadline that necessitates immediate action concerning the mine.
While Mulino has demonstrated a willingness to explore options for the mine’s future, so have the coalition of 40 organizations known as “Panama is Worth More without Mining,” which gathered shortly after Mulino's Thursday announcement. Lilian González Guevara, the executive director of the NGO Environmental Incident Center, stated, “We haven’t depended on mining; it’s a fallacy.” The coalition is firmly against any plans to restart mining operations, pressing instead for permanent closure, and has organized a public vigil to remind authorities of the continuing opposition.
The ongoing issue serves as a clear demonstration of the complex interplay between economic interests, environmental sustainability, and local community needs in Panama. As the discussions between Mulino and business groups get underway, the challenges will undoubtedly continue to mount, forcing both sides to grapple with the implications of their choices in a country rich in natural resources.
