Protests have erupted in Panama, and the cause of the unrest is a contract with a Canadian company, First Quantum Minerals.
Here’s a closer look at the situation.
WHAT IS FIRST QUANTUM? WHAT IS ITS PRESENCE IN PANAMA?
First Quantum is a Canadian copper company with global operations and offices in Toronto and Vancouver. The company’s presence in Panama includes the Cobre Panama mine, which they describe as one of the largest new copper mines opened globally in the past decade.
In November 2017, First Quantum increased its ownership interest in Minera Panamá S.A., the company that holds the Cobre Panama concession, to 90 percent.
WHAT IS THE LATEST ON THE PROTESTS IN PANAMA?
First Quantum has reduced operations at its flagship copper mine in Panama due to protests and local opposition. Thousands of protesters have taken to the streets over the government’s decision to extend First Quantum’s mining license. Panama’s president, Laurentino Cortizo, changed his position last month and stated that a referendum would be held.
However, the referendum and the push for the country’s congress to repeal the contract have been set aside, and Panama’s government is now waiting for the country’s Supreme Court to rule on whether to end the agreement.
WHY ARE PEOPLE PROTESTING THE MINING CONTRACT?
Demonstrators are demanding that the Panamanian government annuls its contract with First Quantum as they believe the open-pit copper mine threatens the area’s delicate ecosystem. Indigenous groups have been particularly vocal about this issue.
HOW HAS THE COMPANY BEEN AFFECTED?
Since Cortizo’s shift on First Quantum’s operations in late October, the company has lost over 40 percent of its value. First Quantum has also reduced operations at its Cobre mine in response to the ongoing protests.
Investment expert Lyle Stein commented that large commitments of capital to smaller areas come with significant risks, especially concerning the involvement of governments and local populations.
With files from the Canadian Press, the Associated Press and Bloomberg News
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