Why Panama’s massive copper mine closure after mass protests remains a ‘pressing issue’ that needs to be addressed

Zorel Morales is concerned about the presence of 130,000 tons of toxic substances.

This is partially processed copper ore from a mine in Panama that has been closed since the end of 2023.

“The chemical reaction Hazardous gases and increased material temperature They pose an environmental risk,” said Morales, president of the Panama Mining Chamber.

He assured that these toxins “threaten the health and safety of those who still work in the place”.

This substance is called “Copper Concentrate”, is the fine grinding and processing of copper ore to increase its copper content for export.

In addition to the risk of releasing toxic sulfur dioxide gas, exposure to dust particles in the concentrate alone Damage to the respiratory system It is harmful to humans and aquatic life.

This material is still stored in Cobre Panama, a huge open-pit copper mine The facility has been closed since December, when the country’s highest court deemed the new 20-year franchise unconstitutional.

After the ruling, the government quickly enforced the closure of the mine, leaving only maintenance personnel.

The order comes after thousands of people took to the country’s streets in October and November 2023 to protest against the mine, arguing it was damaging the environment.

The facility is one of the largest copper mines in the world and employs approximately 7,000 people And covered 1% of world production This metal.

It opened in 2019 and is owned by Canada’s First Quantum Minerals.

First Quantum is located deep in the rainforest near the Caribbean coast of Panama. $10 billion Mines, including new infrastructure such as roads, buildings and machinery.

The company claims the right to export existing copper concentrate and has filed two international arbitration cases against Panama, despite assurances that it would prefer dialogue with the new government that took office in July.

The dispute over the copper concentrate centers on who owns it, the Canadian or Panamanian company.

“We look forward to continuing to work with the new government to resolve the issues at the mine,” First Quantum spokesman Maru Gálvez said in a statement.

He pointed out that “it is particularly important to resolve the situation of residual copper concentrate in the mine, and all parties agree that This is an urgent matter”.

A government spokesman responded that they were still evaluating the situation and would not be interviewed. Jose Raul Mulinoand has not provided clear information on how to resolve the issue.

Panama’s former finance minister, Dulcidio de la Guardia, said he was frustrated by the situation.

“Panama Copper is the most important foreign investment in the country after the Panama Canal,” said De La Guardia, who was in charge of the portfolio from 2014 to 2019.

He ensured that the company’s representatives 5% of national GDPwhich means approximately $5 billion Direct and indirect contribution to the economy.

Michael Camacho, leader of the Utramipa mining union, is one of the 1,400 employees still working at Cobre Panamá as part of a maintenance program that has cost $15 million and $20 million per month.

Camacho wants the government to approve a plan to protect and safely operate the mines.

“December, More than 6,000 miners lost their jobs when operations cease. “I urge the new president, José Raúl Mulino, to listen to the concerns of communities near the mines who want to return to work.”

On the other hand, environmental activist Raisa Banfield, who took part in the demonstrations that led to the mine’s closure, is convinced that closing the mine is the best option for the country.

“Panama’s future does not depend on mining. Panama’s future Depends on its biodiversity“, he declared.

He believes the country needs a new business model: “I think we are recovering our identity, moving away from mega-projects like the Panama Canal and foreign companies that exploit our resources to fit their economic model.”

She and other protesters received Climate activist Greta Thunberg and Hollywood actor Leonardo Dicapriohe shared a video asking “megamine” to cease operations.

Banfield wants the new government to invest in ecotourism infrastructure so Panama can prosper like neighboring Costa Rica.

However, others believe the mine’s closure was not entirely for environmental reasons.

Samuel Valdés is a biologist and owner of the consulting firm Biodiversity Consultants Group, which was hired by First Quantum to conduct a study to help minimize the environmental impact of the massive facility.

“There’s a lot of misinformation surrounding the mine,” he said.

Valdés insisted opposition to the project was partly linked to suspicion of the previous administration.

“Many people I think the previous government was corruptwhich is why they are beginning to distrust its (close) relationship with the mine.”

He added that due to good rainfall, rivers around the mining area were in top condition and all reports showed they contained a variety of fish, algae and shrimp.

However, recognizing that sometimes Isolated incidents have occurred Impact on specific areas.

He argues that there are also tensions between different moral perspectives.

“The fight against mining disasters is fought by city people who have a stereotyped idea of ​​how rural people should live. Having worked with local people for the past 10 years, I can say that this mine has greatly improved their lives.”

It is estimated that around 40,000 people depend on the mine for income, including companies that provide services.

When the plant closed, Valdés had to lay off 60 employees, including many scientists.

According to the consulting company boss, the problem of excess copper concentrate was caused by the mine having to be closed immediately.

“The problem here is that a mine is a bit like a busy kitchen that suddenly shuts down and food is left to the side or in the oven. The process stops in the middle of a cycle”.

Some have argued that the mine should be reopened so it can be closed again in a more orderly manner. Valdés clearly wants to resume production and keep it open.

This uncertainty does not help Panama’s reputation as a destination for international investment.

Fitch Panama’s investment-grade credit rating revoked Because the closure of copper mines hurt economic growth.

Whether Panama’s new government will reopen the mine to regain investor confidence or keep it closed remains a mystery that needs to be resolved.

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