Panama City.- Panama’s Supreme Court on Tuesday declared “unconstitutional” the concession contract for the largest copper mine in Central America, whose approval by Congress sparked protests that have semi-paralyzed the country for more than ‘a month.

“We have unanimously decided to declare unconstitutional all of Law 406” of the contract between the Panamanian State and the Canadian mining company First Quantum Minerals (FQM)announced the president of the highest court, Maria Eugenia Lopezannouncing the judgment after four days of deliberations between the nine members of the court.

After the announcement, celebrations broke out with a group of protesters spending the entire night outside the court.

“More than a victory for the institutions, it is a victory for the democracy of the people,” the environmentalist declared to the Télémetro channel. Raisa Banfieldwho shouted “yes, we can” with a megaphone in front of the court, celebrated the judgment handed down on the day Panama commemorates its independence from Spain.

The protests, the largest in Panama since the fall of former dictator Manuel Antonio Noriega in 1989, and the resulting roadblocks, caused losses of more than $1.7 billion in the agriculture, tourism and trade sectors, according to the union.

After the ruling, protesters began to remove some roadblocks, local media reported.

“I accept and respect the decision of the Supreme Court of Justice, expressed in its ruling today,” the Panamanian president wrote on Channel X. Laurentino Cortizowhich was criticized by unions for its “inaction” in the face of blockages.

“This battle is not over, people need to accept the closure of First Quantum,” he said. Saul Mendezgeneral secretary of the construction union, one of the organizers of the protests, in a speech in court.

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The movement erupted on October 20 when Congress approved the contract signed by the government and the FQM to operate an open-air copper mine in the Panamanian Caribbean for 40 years.

The contract was signed in August by the government and the Canadian company, after the Supreme Court declared the original 1997 agreement unconstitutional in 2017.

The FQM claims that the mine generates 50,000 jobs, contributes 5% of GDP and that the contract includes the payment of annual royalties for $375 millionten times more than the initial agreement.

As of 2019, the mine produces approximately 300,000 tonnes of copper concentrate per year, representing 75% of Panamanian exports. It also has around 2,500 suppliers in the country, who sell goods to 900 million dollars per year.

Environmentalists say the mine seriously damages the environment because it is in a biological corridor that connects Central America and Mexico. American actor Leonardo DiCaprio and Swedish environmentalist Greta Thunberg referred to the Panamanian protests on their social networks.

Attempting to minimize discontent, Congress on November 3 approved an indefinite suspension of metal mining exploration and exploitation concessions. In turn, he left the future of the FQM contract and the government in the hands of the Supreme Court.

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The company, which has invested in Panama more than 10 billion dollarsinformed the government of its “intention” to “present arbitration requests”, under the protection of the free trade agreement between Panama and Canada in force since 2013, while hoping that the situation will be resolved through the dialogue.

The Cortizo government said it was ready to “defend national interests” in the face of a possible arbitration, which, if lost, would involve compensation of several million dollars for public coffers.

Some experts say it will be easier for the government to defend its position after the ruling, since it will be able to claim that the ruling caused it to break the contract.

“Of course, we have more strength with a decision,” the lawyer told AFP. Ernesto Cedeñowho filed one of the appeals against the contract.

The Chamber of Commerce called for accepting the judgment and preparing in a consensual and technical manner “an orderly closure” of the mine.

Felipe Chapman, managing partner of economic consultancy Indesa, told AFP that “if (the mine) closes, its contribution to GDP will be lost, which will take a few years to recover, as will jobs and revenues.” tax.” “, but the country can promote other sectors, such as tourism.

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