Panama Resumes Discussions on the Fate of Contentious Copper Mine Despite Lingering Opposition
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In Donoso, Panama, operations at a large copper mine were halted by the Supreme Court due to the government concession being deemed unconstitutional over a year ago. The new administration under President José Raúl Mulino is considering a potential restart of the mine. Business groups are urging Mulino to discuss the mine's future with his team. The mine's owner is conducting media tours and has expressed willingness to suspend arbitration. At the same time, environmental and civic groups that protested against the mine's operation in 2023 are preparing to protest again.

Mulino has taken steps to restart the mine's power plant and sell around $250 million worth of copper concentrate stored at the site. Recognizing the mine's significant economic impact, accounting for almost 5% of Panama's GDP, Mulino is contemplating the decision in light of opposition from a few individuals who are against the mine.

In March 2023, Panama's Congress reached an agreement with First Quantum, a Canadian mining company, allowing its local subsidiary Panama Copper to continue operating the mine for at least 20 more years. The open-pit mine was closed in 2022 due to stalled talks over government payments. The final approval of the contract in October 2023 enabled the subsidiary to operate the mine for the next two decades, with a possible extension for another 20 years.

Opposition to the deal came from critics concerned about Panama's benefit from the agreement and environmental and Indigenous groups worried about the mine's impact on the jungle. This led to widespread protests, including a blockade of the mine's power plant and sections of the Pan American highway. The Supreme Court of Panama ruled the 20-year concession unconstitutional in November 2023, prompting the process to close the mine to begin.

The once-bustling Cobre Panamá mine now sees signs advocating for its reopening along the road. The mine employed over 7,000 people at its peak, with around 1,000 remaining as efforts are made to maintain the equipment and the surrounding jungle.

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