- Supreme Court voided 20-year mining contract in 2023
- Mine contributed 5% to Panama's economy pre-closure
- 7,000+ jobs lost since operations halted
- Environmental coalition plans new nationwide protests
Panama's new administration faces mounting pressure as it reopens discussions about the contentious Cobre Panamá mining project. President José Raúl Mulino's recent moves to restart power plants and liquidate existing copper stockpiles signal potential policy shifts, reigniting debates about natural resource management in Central America's fastest-growing economy.
The mining complex's economic significance remains undeniable, having generated over $2 billion in export revenue during peak operations. However, critics highlight Panama's 4.9% GDP growth in 2023 despite the mine's closure, challenging arguments about its essential role. Our economy diversified through logistics and tourism during the shutdown,notes Lilian Gonzáles Guevara of the Environmental Incident Center.
Industry analysts point to copper's critical role in renewable energy infrastructure as global demand surges. Electric vehicle production requires four times more copper than conventional cars,explains metals market strategist Carlos Rojas. Panama's reserves could position it as a green technology supplier.This perspective contrasts sharply with local experiences in communities like Río Caimito, where residents report persistent infrastructure gaps despite previous mining revenues.
The government faces complex challenges balancing international arbitration risks with domestic unrest. First Quantum Minerals' suspension of legal proceedings suggests willingness to negotiate, but their warnings about $8 billion in equipment degradation underscore time sensitivity. Regional examples like Chile's Escondida mine demonstrate successful benefit-sharing models, though Panama's unique biodiversity raises higher ecological stakes.
As Sunday's planned vigil approaches, protest organizers emphasize alternative development paths. Costa Rica banned open-pit mining in 2010 and tripled eco-tourism revenue,argues coalition spokesperson Marco Fernandez. With copper prices up 22% since January, the Mulino administration's decision could reshape Panama's economic trajectory and environmental legacy.
