Could you provide a brief history of mining in Panama?

According to archeological findings, Indigenous groups in the region were extracting minerals as far back as 1,500 years ago. One of the oldest and richest mines during the Colonial era was the Cana mine in Darién Province, which operated until 1942. After Panama gained independence from Colombia in 1903, it passed its first mining regulations, the Mining Code of 1916. This was later reformed in 1963, opening the country to foreign investment and major discoveries like the Donoso deposit (now Petaquilla), the Cerro Colorado or Cerro Quema deposits. By 1999, a global fall in gold prices, as well as Panama’s passing of its first Environmental Law, rendered many of these projects on hold. First Quantum Minerals (FQM) entered Panama during this time, acquiring the rights to Cobre – a project which was to become the country’s first and only large-scale mine. 

What was the legal context behind the suspension of the Cobre mine in 2023?

The contract signed by FQM in 1997 was challenged primarily on environmental grounds, however, we must remember that Panama did not yet have a general environmental law or an executive decree requiring Environmental Impact Studies (EIS) at the time of that first contract. A new contract (Law 406 of 2023) was renegotiated but later declared unconstitutional by Panama’s Supreme Court of Justice; the government at the time misinterpreted the ruling and issued an executive decree to close the mine. The National Assembly, under societal pressure, passed Law 407, imposing a mining moratorium. This moratorium is unconstitutional, violating Panama’s Constitution (Articles 257 and 259), which explicitly allows mining. There is also a political undertone to the events and deeper social issues at play. The moratorium and mine suspension took place in 2023, before an election year, therefore there was little political will from the outgoing government to make a decision. 

What fuelled the large-scale protests in Panama? 

The protests were not originally about mining, but rather against the handling of the pandemic, as Panama had imposed one of the longest and strictest lockdowns worldwide, causing broad dissatisfaction. The protests were started by the youth, but when the contract between Minera Panamá and the Panamanian government became public, radical groups, unions and environmental activists joined the protests. The mining issue became a rallying point for all these different groups while politicians used it seeking to attract young voters ahead of the upcoming elections. Discontent built up over time erupted into mass protests, a familiar pattern in Latin America…

What have been the economic implications since its suspension?

The shutdown created a major economic void. This single project represented 4.8% of Panama's GDP (surpassing the Panama Canal’s 3.5% contribution) and 76% of the country’s exports. Given that Panama is a small country with a population of only 4.3 million people, the mine's suspension had a profound impact on employment, affecting a total of 54,107 jobs. 

What will be the main theme at the upcoming Expo Minera Panama organized in November this year?

This year’s theme focuses on Panama’s role as a mining hub for the Americas – and why not, for the world. Panama is just a six-hour flight from Canada and 10 hours from Europe and other further regions. Our strategic location serves as a meeting point for the world and an excellent logistics hub fort the entire Latin American region. We are excited to welcome delegates to Panama from November 25th to 27th.

What is your outlook regarding the future of mining in Panamá?

The future looks bright for mining in Panamá. 2024 was a year of transition, economic strain, and education – we now have proof of mining’s contributions to our country, to our port operations, agriculture, logistics, transportation, infrastructure, and constructio, all of which saw significant development as a result of a single mining project, and all of which also experienced the consequences of its demise. Today, Panamanians know more about mining than they did two years ago, and they talk more openly about mining. Some are starting to demand the reopening of Cobre. What happened bears global lessons too: We must step forward to educate the public on mining or we will face misconceptions and opposition. Mining chambers across the Americas must unite to combat misinformation and prevent similar situations from unfolding in other countries.