Panama Considers Copper Mine Restart Despite Opposition \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Panama’s new president, José Raúl Mulino, is signaling potential support for restarting the controversial Cobre Panamá copper mine. Business leaders are pushing for reopening, while environmentalists and Indigenous groups prepare renewed protests. The mine, shut down after being declared unconstitutional, contributed nearly 5% of Panama’s GDP.
Panama Considers Copper Mine Restart Despite Opposition Quick Looks:
- Panama’s Supreme Court ruled the mine’s concession unconstitutional in 2023.
- President José Raúl Mulino hints at restarting operations soon.
- The Cobre Panamá mine previously contributed nearly 5% of GDP.
- Business groups lobby for reopening to revive local economies.
- Mulino ordered the sale of $250 million in stored copper.
- Environmental and Indigenous groups prepare new protests.
- Coalition “Panama is Worth More without Mining” opposes reopening.
- Protesters cite environmental risks seen in Chile and Peru.
- Mulino emphasizes the mine’s economic impact over dissent.
- The mine once employed over 7,000 workers; only 1,000 remain.
- Local vendors suffered business losses after mine closure.
- Residents near the mine say promises of development went unfulfilled.
- First Quantum Minerals, the mine operator, seeks urgent decisions.
- The company warns that equipment deterioration may prevent a restart.
- Coalition plans public vigil to pressure government against reopening.
Deep Look
More than a year after Panama’s Supreme Court declared the country’s largest copper mine concession unconstitutional, the debate over the future of the Cobre Panamá mine has reignited. President José Raúl Mulino has indicated he may support restarting the mine, a move that has sparked optimism among business leaders and concern among environmental and civic groups preparing for renewed protests.
The Cobre Panamá mine, located in a biodiverse jungle on Panama’s Atlantic coast, was once a major economic engine, contributing nearly 5% to the country’s GDP and employing over 7,000 workers. However, its presence also sparked intense controversy over environmental damage, alleged governmental favoritism, and unmet promises of community development.
In 2023, after months of nationwide protests, road blockades, and public outcry, the Supreme Court ruled the 20-year mining concession granted to Canadian company First Quantum Minerals unconstitutional. The ruling prompted then-President Laurentino Cortizo to begin the process of shutting down the mine. A mining moratorium was also enacted by Panama’s Congress, further signaling that the country was turning away from large-scale metal mining.
Yet, with Panama’s economy feeling the pressure from global market fluctuations, President Mulino is weighing the mine’s economic potential. In his recent comments, he suggested that opposing voices—whom he described as “five people who don’t pay a payroll”—should not dictate decisions that could benefit the country’s economy. He has already authorized the reopening of the mine’s power plant and approved the sale of $250 million worth of copper concentrate currently sitting unused at the site.
The mine’s operator, First Quantum Minerals, is eager for a resolution. Company head Manuel Aizpurua has led media tours of the mine, showcasing the risks posed by inactivity. “Nature is attacking these installations,” Aizpurua warned. Equipment is deteriorating, and without immediate action, restarting the mine could become impossible. The company has also offered to sit down with the government “without preconditions” to find a mutually beneficial solution.
Local business leaders and vendors like Edgardo Díaz, who relied on the mine’s workforce for their livelihoods, are urging the government to reopen operations. Many small businesses folded after the mine’s closure, and communities that depended on the economic ripple effect are still struggling.
However, widespread opposition remains fierce. Environmental coalitions, Indigenous communities, and civic groups argue that the mine’s environmental costs and broken promises far outweigh its economic contributions. In the town of Río Caimito, resident Abelisario Rodríguez points to unfulfilled promises of development, saying his community still lacks clean water, electricity, healthcare, and educational facilities. “We don’t want that for our future generations,” he said, citing the environmental devastation seen in other mining-heavy nations like Chile and Peru.
The environmental coalition “Panama is Worth More without Mining,” comprising 40 organizations, is mobilizing again. Its leader, Lilian Gonzáles Guevara, refuted the claim that Panama’s economy depends on mining. “We grew without the mine operating last year,” she noted, dismissing the economic argument for reopening as a “fallacy.” The coalition plans a public vigil this Sunday to remind authorities of strong public opposition.
The protests of 2023 brought the country to a standstill. Roadblocks on the Pan-American Highway and near Costa Rica’s border disrupted trade and travel, demonstrating the population’s willingness to fight against what many see as environmental and social injustice.
At the heart of the debate lies a deeper question: Can Panama balance economic growth with environmental protection and equitable development for its people? While the mine undeniably contributed to GDP and job creation, critics argue that those benefits were not felt by the most affected communities.
First Quantum Minerals insists that the mine has the potential to offer significant contributions to Panama, both economically and socially. However, residents like Rodríguez remain skeptical, pointing to years of broken promises and minimal infrastructure improvements in areas surrounding the mine.
The coming weeks will be crucial. President Mulino plans to meet with his cabinet next week to discuss the mine’s future. The decision could set the tone for Panama’s broader economic strategy and environmental policies. If Mulino pushes forward with reopening efforts, he may face renewed nationwide protests reminiscent of the chaos of 2023.
On the other hand, a decision to permanently close the mine would align with environmentalists’ and Indigenous groups’ demands but could have immediate economic consequences and spark discontent among business leaders and workers hoping for the mine’s return.
The stakes are high: the economic interests of multinational corporations, the well-being of local Panamanian communities, environmental preservation, and political stability all hang in the balance. If mishandled, the decision could deepen divisions within the country, creating long-term political and social instability.
As global demand for copper remains strong—fueled by the green energy transition and electric vehicle production—the pressure on Panama to exploit its natural resources is immense. Yet, the nation’s commitment to environmental sustainability and Indigenous rights is being put to the test. The outcome of this debate could set a precedent for how developing nations balance international corporate interests with environmental stewardship and social responsibility.
Panama Considers Copper Panama Considers Copper
You must Register or Login to post a comment.