- 121,000 metric tons stockpiled since 2023 shutdown
- Formerly contributed 4.8% of Panama’s annual GDP
- Supreme Court voided 20-year concession in November 2023
The Panamanian government’s Friday announcement reignites debates about balancing economic necessities with environmental protection. With maintenance costs exceeding $15 million monthly, officials argue exporting existing materials prevents toxic leakage into watersheds serving 300,000 residents. However, activists warn this sets dangerous precedent for reviving operations.
First Quantum Minerals’ Cobre Panama project remains central to regional economic strategies. Before closure, the mine generated $2.1 billion annually – equivalent to 38% of Panama’s export revenue. This financial black hole now pressures President Mulino’s administration as unemployment in Colón Province triples since 2022.
Environmental engineers emphasize containment challenges at the 13,000-hectare site. Open-pit mines require active water treatment even when inactive,explains Dr. Alicia Montero from Universidad Tecnológica. Her 2024 study shows 60% of abandoned Latin American mines caused irreversible ecosystem damage within five years.
The decision follows Chile’s recent success with state-managed copper reserves. When Escondida Mine suspended operations in 2020, Santiago authorized limited exports to fund robotic monitoring systems – a model Panama now adapts. However, unlike Chile’s desert locations, Cobre Panama borders the Mesoamerican Biological Corridor containing 12 endangered species.
Industry analysts highlight global copper demand surging 28% by 2030 due to renewable energy infrastructure. Panama’s stockpile could power 4 million electric vehicles, creating potential buyer competition between China and Western manufacturers. This geopolitical dimension complicates domestic debates about resource sovereignty.
Legal experts question the export plan’s constitutionality given November’s Supreme Court ruling. The original contract’s cancellation centered on inadequate environmental reviews – a precedent that could apply to current decisions. Opposition leader Sara Márquez vows to challenge the exports, stating: This backdoor reactivation betrays our judicial system’s intent.
