The largest copper mine in Central America will reopen in Panama

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The largest copper mine in Central America will reopen in Panama

The gigantic open-pit mine, located 240 km from Panama City, generates 4 % of the GDP and 75 % of the country's export earnings.

Panama and the Canadian mining group First Quantum Minerals announced Wednesday, in a joint press release, that they had reached an agreement allowing the reopening of the largest copper mine in Panama. Central America.

Mine activities had been suspended for almost three months due to a dispute between the Panamanian authorities and the Canadian group over the taxes and royalties First Quantum Minerals had to pay.

The Government of Panama and Minera Panama S.A., a local subsidiary of First Quantum Minerals, are pleased to announce that they have reached agreement on the final text of the new Concession Agreement which will govern the activities of the Panama Copper Project, on the country's Caribbean coast, said the joint statement.

The new 20-year renewable contract provides for the payment of a minimum of 375 million dollars a year, about 10 times more than the amount provided for in the previous contract, signed in 1997, the press release said.

Closing the mine would have meant the loss of 8,000 direct jobs and among subcontractors. Workers whose jobs were threatened had demonstrated several times in the Panamanian capital.

This gigantic open-pit mine, located 240 km from Panama City, generates 4% of the Gross Domestic Product (GDP) and 75% of the country's export earnings.

As part of the dispute between the two sides, the government of Panamanian President Laurentino Cortizo had ordered the suspension of activities at the mine on December 15, and the closure of its port on February 3.

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