By D. W. G. Kalani Tharanga, JadeTimes News
Environmental Concerns and the Risks Posed by Toxic Material
Zorel Morales, the head of Panama’s Chamber of Mining, is deeply concerned about 130,000 tonnes of toxic copper concentrate that has been left untreated at the now closed Cobre Panamá mine. This partially processed copper ore poses significant environmental risks due to the potential release of dangerous gases, such as sulphur dioxide, and the increase in temperatures within the material. The concentrate, a finely ground substance with heightened copper content, not only threatens the health of workers still on site but also poses a danger to aquatic life if the dust particles are released into the environment. The mine, located in a tropical rainforest near Panama’s Caribbean coast, was forced to close following a supreme court ruling that deemed a new 20 year concession unconstitutional. This ruling, coupled with environmental protests, led to the cessation of operations at one of the world’s largest copper mines, leaving the hazardous material in a precarious state.
The mine’s closure has ignited a debate over the future of mining in Panama, with environmental activists like Raisa Banfield advocating for a shift away from large scale industrial projects in favor of preserving the country’s biodiversity. Banfield, who played a key role in the protests that led to the mine’s shutdown, argues that Panama’s future lies in eco tourism rather than mining, which she views as a threat to the nation’s natural heritage. She and other activists received international support from figures like Greta Thunberg and Leonardo DiCaprio, who called for the closure of the “mega mine.” As the government assesses its next steps, the environmental risks associated with the abandoned copper concentrate remain a critical issue that needs urgent attention.
Economic Impact and the Struggle for a Resolution
The abrupt closure of the Cobre Panamá mine has had a significant economic impact on the country. As Panama’s most substantial foreign investment, second only to the Panama Canal, the mine contributed approximately 5% of the nation’s GDP, generating around $5 billion in direct and indirect economic activity. The shutdown has left thousands unemployed and has strained Panama’s reputation as a stable destination for international investment. Former Finance Minister Dulcidio de la Guardia expressed frustration over the situation, highlighting the mine’s importance to the national economy.
The Canadian firm First Quantum Minerals, which owns the mine, has invested $10 billion in the project since its inception in 2019 and is now embroiled in a dispute with the Panamanian government over the ownership of the remaining copper concentrate. The company has filed international arbitration claims but has expressed a preference for resolving the issue through dialogue with the newly elected government. The maintenance of the site, which continues to employ 1,400 workers, costs First Quantum between $15 million and $20 million monthly, adding to the financial strain.
Local communities and workers, represented by union leader Michael Camacho, are calling for the mine to reopen to restore jobs and economic stability. However, environmental concerns and public mistrust of the previous government, which was perceived to have close ties to the mine, have complicated the situation. Biologist Samuel Valdés, who conducted environmental studies for First Quantum, argues that misinformation and urban rural tensions have fueled opposition to the mine. He contends that the lives of local people have improved due to the mine and that it should be allowed to resume operations to secure their livelihoods.
The new government faces the challenge of balancing environmental protection with economic recovery while addressing the concerns of all stakeholders involved. The outcome of this situation will be crucial in determining Panama’s future as a destination for foreign investment and its approach to natural resource management.
