Panama orders halt to new mining projects as street protests grow By Reuters

© Reuters. FILE PHOTO: View of the Cobre Panama mine, of Canadian First Quantum Minerals, in Donoso, Panama, December 6, 2022. REUTERS/Aris Martínez/File Picture

By Valentine Hilaire

(Reuters) -Panama will reject all new mining initiatives, the president stated on Friday, as his authorities defends a controversial contract extending operations for twenty years at a significant mine that has sparked rising protests demanding its cancellation.

President Laurentino Cortizo introduced that the brand new mining restrictions will apply to each future mining initiatives in addition to these at present in search of permits.

“All of them will probably be rejected,” he wrote in a submit on X. “This ban will go into impact from at this time.”

The abrupt mining pause comes barely per week after Cortizo hailed the revised contract that permits the native unit of Canada’s First Quantum (NASDAQ:) to proceed working its profitable Cobre Panama mission.

The prolonged First Quantum concession for the sprawling open-pit mine ensures state coffers at the least $375 million yearly whereas permitting it to function for at the least 20 extra years, with the opportunity of additional extensions.

1000’s of protesters have taken to the streets to criticize the deal, in addition to the mine’s environmental prices, and demand its withdrawal.

Earlier on Friday, Financial system Minister Hector Alexander echoed Cortizo’s assist for the contract.

“Panama is a mining nation,” Alexander instructed Reuters, arguing that with out the mine, the nation’s financial system would barely develop this 12 months, versus the strong 6% progress the federal government estimates.

The Cobre Panama mine alone accounts for almost 5% of Panama’s financial system.

Additionally on Friday, Panama’s high courtroom agreed to think about a second lawsuit difficult the contract.

In latest days, protesters have erected highway blockades to stress authorities, which additionally led to the suspension of lessons nationwide earlier this week.

In an interview, Edison Broce, a lawmaker who opposes the contract, predicted that politicians who assist will probably be punished in elections subsequent 12 months.

He urged Cortizo and his authorities to heed the protesters.