Panama's Assembly looks to revoke contract for Canadian mining company after public outcry

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Panama's government has nearly approved a new bill revoking a controversial mining contract. A Canadian company's local subsidiary had been approved for at least 20 years more mining two weeks ago. The move sparked nationwide outrage and protests.

Demonstrators tear down a police barricade during a protest against a recently approved mining contract between the government and Canadian mining company First Quantum, in Panama City, Tuesday, Oct. 31, 2023. Demonstrators clash with the police during a protest against a recently approved mining contract between the government and Canadian mining company First Quantum, in Panama City, Tuesday, Oct. 31, 2023.

The new bill not only repeals that contract but extends a moratorium on all concessions for mining activities until the country’s Code of Mineral Resources is reformed.Soccer player’s killing draws attention to struggles in one of Panama’s principal portsBefore legislators debated the extraordinary measure, Cortizo first proposed a national referendum on the contract. Eight lawsuits were also filed with Panama’s Supreme Court arguing it was unconstitutional.

Critics warned using a new law to revoke the contract could leave the government liable to legal action from Minera Panama. If, however, the Supreme Court declared the contract unconstitutional, lawyers said it would be annulled without the risk of possible multi-million dollar lawsuits. The mine is “in the middle of a jungle,” according to Minera Panama’s own contractor, Jan De Nu Group. In particular, it lies in Panama’s share of the Mesoamerican biological corridor, an important migratory route which studies estimate contains up to 10% of all known species.

 

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Panama's Assembly looks to revoke contract for Canadian mining company after public outcryPanama's government has nearly approved a new bill revoking a controversial mining contract.
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