Arrr! Panama's high court be sayin' that the mining contract be unconstitutional! Let's see what be unfoldin' next, mateys!
2023-11-29
Avast ye scurvy scallywags! The Panamanian Supreme Court, in all their wisdom, hath declared the 20 year plunderin' permit granted to a Canadian mining crew to be as unconstitutional as a parrot with a pegleg! The landlubbers of Panama be raisin' their voices, claimin' the project be messin' with the environment, arrr!
In a historic ruling, Panama’s Supreme Court declared that a 20-year concession granted to a Canadian copper mine was unconstitutional. The decision was celebrated by thousands of Panamanian activists who had argued that the project would damage a forested coastal area and threaten water supplies. While the mine has been an important economic engine for the country, employing thousands, it also triggered massive protests that paralyzed the nation for over a month. Indigenous communities voiced their concerns, stating that the mine was destroying ecosystems they depend on.The high court highlighted environmental and human rights concerns in its decision, ruling that the contract violated multiple articles of Panama’s constitution. As a result, the mine, the largest open-pit copper mine in Central America, is now in the process of shutting down.
It is unlikely that Panama's government and the mining company will pursue a new agreement based on the strong rejection by Panamanians. However, the mining company is free to pursue international arbitration to seek compensation for the closure based on commercial treaties signed between Panama and Canada.
The closure of the mine will have economic consequences, as it generates thousands of jobs and contributes to Panama’s GDP. The government had hoped that the contract would help fill holes in the nation’s budget, but now that won't be possible. Critics argue that the amount Panama was receiving annually from the mining company was meager.
Overall, while the ruling is a victory for environmental and human rights activists, it poses challenges for the country's economy and public finances.