Panamanian President, Laurentino Cortizoon Thursday ordered the cessation of operations in the country of the Canadian copper giant First quantum mineralswhich operates the largest mine in Central America in the Panamanian Caribbean.

“I’ve decided […] instruct the Minister of Commerce to execute a safe preservation and management plan, i.e. [solo] upkeep and maintenance of the Cobre Panama project,” Cortizo said in a televised message.

This decision by the President, supported by his Council of Ministers, involves the suspension of operations in the country of a company that contributes 75% of exports and 4% of Panamanian GDP.

Cortizo claimed Minera Panamá, the First Quantum subsidiary, “has not fulfilled commitments” to sign a new concession contract by Wednesday that would raise royalties to $375 million per year, or 10 times more than in the previous agreement.

This is not acceptable for me as president, neither for the government nor for the Panamanian people,” added the social-democratic president.

canadian society has invested more than $10,000 million in Panama earthworks, construction of buildings to house its 7,200 employees, purchase of heavy machinery, a power plant, a port for deep-draught merchant ships, access roads, reforestation and development programs. community aid.

The mine, discovered in 1968, is on the Caribbean coast, 240 km by road from the capital, and since February 2019 has been producing some 300,000 tonnes of copper concentrate per year, which is exported from adjacent Puerto Punta Rincón. at the deposit. .

The leader of the company in Panama, the Briton Keith Green, did not react immediately to the announcement of the president.

Last week, Green told AFP that his company “intends to reach an agreement” with the Panamanian government, but admitted that “negotiations are a bit stuck”.