Panama president asks voters to decide on contentious First Quantum mining contract By Reuters

© Reuters. FILE PHOTO: Panama’s President Laurentino Cortizo Cohen addresses the 78th Session of the U.N. Normal Meeting in New York Metropolis, U.S., September 19, 2023. REUTERS/Eduardo Munoz/File Picture

By Valentine Hilaire and Elida Moreno

PANAMA CITY (Reuters) -President Laurentino Cortizo mentioned on Sunday Panama would maintain a referendum to resolve whether or not to scrap a contract with Canadian miner First Quantum (NASDAQ:)’s native unit following days of protests by 1000’s of individuals against the open pit mine undertaking.

The vote will happen Dec. 17 and its consequence could be binding, Cortizo mentioned in a video message.

“I’ve respectfully listened to those that oppose the contract with Minera Panama,” Cortizo mentioned, utilizing the title of First Quantum’s native unit.

Neither First Quantum nor Minera Panama instantly responded to requests for remark.

Panama’s authorities and the miner had agreed on a contract which might assure the Central American nation an annual revenue of $375 million whereas permitting First Quantum’s native unit to function the Cobre Panama undertaking, an open-pit copper mine, for not less than 20 years.

Protesters have criticized each the deal and the mine’s environmental prices, even after Cortizo on Friday issued a decree rejecting all new mining tasks.

Critics countered that the transfer wouldn’t have an effect on the permitted First Quantum contract.

On Saturday, Minera Panama voiced concern after protesters on boats approached the worldwide Punta Rincon port the place it operates.

“We’re deeply involved by this incident, which represents a major menace for our operations and the protection of our employees,” it mentioned in a press release on Saturday, calling the actions “unlawful and violent.”

In a press release late Sunday, Cortizo’s workplace famous that the contract was first established in 1991.

After Cortizo’s announcement, Panama’s most important employees’ union mentioned its members will hold protesting within the streets till the contract is annulled.

“There is no maneuver on this combat that may deceive the individuals,” a union consultant mentioned.

The Cobre Panama mine’s exercise accounts for almost 5% of the nation’s economic system, and final 12 months represented about half of First Quantum’s EBITDA.