The Cobre Panama mine began producing and shipping copper concentrates in June 2019.

They are asking lawmakers to reject the agreement between the company and the government regarding the Cobre Panama mine.

Panamanian social and environmental organizations called for a nationwide march Tuesday afternoon to parliament to demand that lawmakers reject a deal between First Quantum Minerals and the government over the giant Cobre Panama mine.

The protest, organized by the Alianza Pueblo Unido por la Vida, follows protests and street clashes on Monday, when Panama’s National Assembly began debating the contract ahead of its discussion in the plenary session of Congress.

The assembly can approve or reject the contract which, according to the opponents, did not have enough citizen participation and must therefore be suspended until the problem is solved.

Talks

The Panamanian government has launched a non-binding 30-day public consultation process regarding the contract signed in March.

The document allows Cobre Panama to remain in business for 20 years, with the possibility of extending this period for another 20 years. It also establishes a minimum payment from First Quantum to the state of US$375 million per year.

Environmentalists and communities neighboring the copper mine also claim that the contract involves concessions to a foreign company that will affect not only the area where Cobre Panamá is located, but almost half of the national territory.

Negotiations between the parties were triggered after First Quantum missed a December deadline to sign a new royalty agreement, which it had been working on since September 2021.

The government and First Quantum disagreed primarily over taxes and royalty payments.

Panama ordered the Canadian mining company to cease operations, which ended up happening in February. During the weeks the mine was closed, the company said it lost $8 million a day in costs it would never recover.

After reaching an agreement with the authorities, mining operations and shipments accelerated to full production within days.

Since then, the contract has faced growing political opposition from the centre-right as well as communities near the copper mine. The document enjoys the support of Laurentino Cortizo’s government and the business world, in particular the National Chamber of Mines.

Cobre Panamá began producing and shipping copper concentrates in June 2019. Last year, it produced 350,438 tonnes of metal, consolidating itself as one of Latin America’s leading copper mines.

The operation contributes about 5% of Panama’s GDP and is responsible for about half of First Quantum’s total production.