After violent protests, a law in Panama regulating the exploitation of Central America’s largest open-cast mine has been declared unconstitutional. The decision sparked celebrations among many people. Panama’s president wants to respect the verdict.
In the dispute over the exploitation of a copper mine in Panama, the country’s highest court made a clear ruling: the controversial mining law and the associated Cobre Panama project were unconstitutional, the court ruled on Tuesday.
The law extended the concession for the operation of the largest open-cast mine in Central America. In August, the government of President Laurentino Cortizo signed a contract with a subsidiary of the Canadian company First Quantum Minerals, according to which the company can mine copper in open pits for at least 20 years – with the option of an extension for another 20 years.
Annually, 375 million dollars (342 million euros) should flow into the state budget. Parliament approved the agreement on October 20th and the President signed it on the same day.
The law, which has now been declared unconstitutional, extended the concession for the operation of Central America’s largest open-cast mine, “Cobre Panama”.
Partying in the streets
The nine judges deliberated for four days. The decision was unanimous, said court president María Eugenia López. After the judge’s verdict was announced, there were celebrations in the streets and in front of the court.
Environmentalist Raisa Banfield said on Telemetro television that it was “a victory for democracy.” According to local media reports, road blockades by mining opponents were dismantled after the decision was announced.
Violent protests since October
Since October there had been violent protests and road blockades against the government’s decision for the concession – every day thousands of people took to the streets across the country, sometimes setting up roadblocks. They fear the environmental impact of copper mining and protested against what they considered to be unfavorable contract terms for Panama.
These were the most violent protests since the overthrow of former ruler Manuel Antonio Noriega in 1989. Four demonstrators were killed. Agriculture, trade and tourism suffered, with losses of more than $1.7 billion, according to industry associations.
President wants to respect the verdict
President Laurentino Cortizo said he would respect the court’s decision. As soon as the ruling is in writing, a transition process for the orderly and safe closure of the mine will begin.
First Quantum Minerals has been active in Panama since 2019. In the event of the concession being withdrawn, the company had announced international arbitration proceedings against the Central American country.