Five keys to the anti-mining protests that shake Panama

For a week now, Panama has been experiencing social unrest with demonstrationsstreet blockades and work stoppages in rejection of the operation, with the permission of the government, of the largest copper mine in Central America.

The Canadian mining giant First Quantum Minerals (FQM) and the government of Laurentino Cortizo are in the eye of the storm, but the protest movement, which includes workers, teachers, doctors, students and environmentalists, increased its demands.

What was the trigger for the protests?

In less than 24 hours, Congress approved a law on October 20 that sealed the agreement signed this year between FQM and the government, and Cortizo sanctioned it.

The agreement, which allows the mining company to operate in Panama for 40 years, took a long negotiation after the Supreme Court of Justice declared the original contract unconstitutional in 2017 because it was made without a bidding.

“There is a erosion of institutions and a rupture with the actors who exercise political representation“Harry Brown, director of the International Center for Political and Social Studies, told AFP.

For the sociologist Danilo Toro, the mining company was the “trigger” of a “accumulated disgust” because of the cost of living and other social problems, and warned of the risk of “a social explosion”.

In the marches, many carry banners and shout slogans against the “corruption”.

What are the protesters asking for?

Protesters demand the repeal of the law. But some sectors are now asking to paralyze mining concessions and declare a moratorium.

“There are 15 mining concessions and there are 103 mining applications, which worries us because it is clear that mining activity is not sustainable.”said José Isaac González, from the Sal de las Redes youth civic group.

The Chamber of Commerce, Industry and Agriculture called for a review of the mining code and a “monitoring” And control “strict” of existing concessions.

“We urgently request the government for an immediate moratorium on new mining concessions”he added.

In a document, the University of Panama asked to “revoke the approval of the contract” and a national referendum to decide whether to continue open pit mining activity in the country.

What is the economic risk?

The contract contemplates minimum annual income of 375 million dollars for the Panamanian State, ten times more than the previous agreement, from 1997.

The Canadian company, which also operates in Spain and other countries, is also committed to making million-dollar investments in the communities near the mine.

“Not having made a tender is a mistake that has already been made (…) Closing the mine that is operating would be a bad decision, excessively expensive”said economist Felipe Chapman.

A closure would lead Panama to lawsuits in international bodies.

Cortizo affirms that the royalties will increase pensions and social security contributions, but above all they are crucial resources for the state budget.

The company and the government highlight that since February 2019 the mine produces about 300,000 tons of copper concentrate per year, contributing more than 4% of GDP and 75% of export income.

The Minister of Commerce, Federico Alvaro, assures that the contract protects 8,000 direct jobs and 40,000 indirect jobs.

And what is the environmental one?

Panama has large copper reserves in Cerro Colorado (west) and in Donoso, in the Caribbean province of Colón, where the gigantic open pit mine is located, 240 km from the capital.

For environmentalist Raisa Banfield, it is “It is disastrous that one of the most destructive and polluting activities takes place in a small country that in one hour connects two oceans through its rivers and tropical forests.”.

“Thousands of hectares, hills, mountains, even rivers are being destroyed, which are becoming the laundry for the industry.”, he declared to AFP.

Part of Panama’s mineral deposits are in important biodiversity areas such as the Mesoamerican Biological Corridor.

“This project opens a gap in the corridor that will have an impact on the ecological connectivity between North and South America“George Hanily, director of the National Conservation Association (ANCON), assured AFP.

What are the possible exits?

Lilian González, from the Environmental Advocacy Center, assured that the solution is in a “derogatory” by Congress, at the request of the government.

Otherwise the solution will remain in the Court, before which several lawsuits against the law were presented. Lawyer Giovanni Olmos advocated for precautionary measures to suspend the effects of the contract.

César Ruiloba, former president of the Bar Association, said that the Court can resolve, but that the solution must be political.

Some analysts point out that the government can bet on the wear and tear of the protest and even on the arrival of the national holidays in November, a real event in Panama.