Copper mine at the epicenter of the crisis in Panama reduces its processing capacity

The Cobre Panamá mine, the largest open pit mine in Central America, “has reduced its processing capacity” of the mineral before the “illegal blocking” of its port in the framework of the national protests against this enclave, reported this Monday the concessionaire Minera Panamá, a subsidiary of the Canadian First Quantum Minerals (FQM).

“Illegal actions at the port have affected the delivery of supplies for the power generation plant”, which has caused a decrease in the “activity of one of its mineral processing lines, while two remain operational“he said in a statement Mining Panama.

The company did not specify in its letter the impact in tons of this decrease on the activity of Cobre Panamá, which last year processed 86.14 million tons of copper and produced 350.4 tons of the mineral, according to company data.

He “illegal blockade caused by small boats in the port of Punta Rincón, of the mine“have, furthermore, “hampered the loading of copper concentrate onto ships”, indicated the company.

The effects on energy generation impact “full operation” from Cobre Panama and “safe management of the environment, including the operation and maintenance of the tailings management facility”added the company.

Panama Mining “is taking a systematic and responsible approach to adjust its operations based on these circumstances”the company said.

He warned that “in case normal activities at the port are not restored“there will be an impact”directly in more than 7,000 collaborators and contractors, as well as in another 40,000 people” indirectly, as well as “a significant decrease in the acquisition of supplies and services”, with a “loss of income of 20 million dollars per week for more than 2,000 companies” local.

Panama Copper represents an investment of US$ 10,000 million and close to 5% of the gross domestic product (GDP) of the Central American country, according to data from First Quantum and the Government of President Laurentino Cortizo.

Three weeks ago, national protests began in Panama against the renewal of the concession, arguing that the law contract that endorses it is “unconstitutional” and harmful to the State from an economic and environmental point of view.

Regarding the future of the mine, both the Executive, which defends that the new contract multiplies the contributions to the treasury by 10 compared to the previous one that was declared unconstitutional in 2017, and the Legislative, have said that they will wait for the new ruling from the Court Supreme Court, which has already admitted several unconstitutionality appeals.

But the teachers and construction unions insist that the contract law be repealed by Parliament, which is in recess until January, and they will not leave the streets until that happens.

The protests that began on October 23 include a teachers’ strike that affects more than 800,000 students and blockades on the country’s main highway, which has generated food and fuel shortages, especially in the north of the country.

This Monday some blocked points in northern Panama were temporarily opened, allowing trucks with supplies to pass through to supply the markets in urban centers.

The private sector estimates that daily losses to the national economy are between 70 and 90 million dollars.

Within the framework of these protests, which included the largest peaceful demonstrations in decades in the Panamanian capital, four protesters have died in road blockades, while more than a thousand were arrested by the Police, who have been accused of excessive use of force. the force.