© Reuters. FILE PHOTO: Panama’s President Laurentino Cortizo Cohen addresses the 78th Session of the U.N. Basic Meeting in New York Metropolis, U.S., September 19, 2023. REUTERS/Eduardo Munoz/File Photograph
By Valentine Hilaire and Elida Moreno
PANAMA CITY (Reuters) -President Laurentino Cortizo mentioned on Sunday Panama would maintain a referendum to determine whether or not to scrap a contract with Canadian miner First Quantum (NASDAQ:)’s native unit following days of protests by hundreds of individuals against the open pit mine challenge.
The vote will happen Dec. 17 and its outcome can be binding, Cortizo mentioned in a video message.
“I’ve respectfully listened to those that oppose the contract with Minera Panama,” Cortizo mentioned, utilizing the identify of First Quantum’s native unit.
Neither First Quantum nor Minera Panama instantly responded to requests for remark.
Panama’s authorities and the miner had agreed on a contract which might assure the Central American nation an annual earnings of $375 million whereas permitting First Quantum’s native unit to function the Cobre Panama challenge, an open-pit copper mine, for at the very least 20 years.
Protesters have criticized each the deal and the mine’s environmental prices, even after Cortizo on Friday issued a decree rejecting all new mining initiatives.
Critics countered that the transfer wouldn’t have an effect on the accepted First Quantum contract.
On Saturday, Minera Panama voiced concern after protesters on boats approached the worldwide Punta Rincon port the place it operates.
“We’re deeply involved by this incident, which represents a major menace for our operations and the security of our employees,” it mentioned in an announcement on Saturday, calling the actions “unlawful and violent.”
In an announcement late Sunday, Cortizo’s workplace famous that the contract was first established in 1991.
After Cortizo’s announcement, Panama’s predominant employees’ union mentioned its members will maintain protesting within the streets till the contract is annulled.
“There is no maneuver on this struggle that can deceive the individuals,” a union consultant mentioned.
The Cobre Panama mine’s exercise accounts for practically 5% of the nation’s economic system, and final 12 months represented about half of First Quantum’s EBITDA.
