Panamas Supreme Court has recently ruled against First Quantum Minerals Ltd.s mining contract, shaking the foundation of one of the worlds largest copper mines.The courts President, Mara Eugenia Lpez, announced this unanimous decision on Tuesday.
Now, the ruling will be officially published in the national journal.This verdict intensifies the uncertainties surrounding First Quantums Cobre Panama mine.The decision follows massive protests triggered last month by Panamas Congress approving a new mining contract with the Canadian firm.Since then, First Quantum has been forced to halt production cut-off from vital supplies.Previously, a similar contract faced rejection in 2017 but didnt halt the mines operations.However, the current public backlash could pressure the government to adopt a firmer stance.First Quantum has refrained from commenting on the courts decision.Panamas High Court Challenges Future of Major Copper Mine.
(Photo Internet reproduction)Protests have escalated since October 20, involving environmentalists, labor unions, and other groups.They began after the Congress ratified the new contract with First Quantum, granting it a 20-year mining right with an option to extend.The Cobre Panama mine is a significant asset for First Quantum, contributing about 1.5% of the global copper production.Critics of the contract argue it undermines national sovereignty and lacked adequate public discussion before legislative approval.Substantial Business LossesThese protests have led to substantial business losses, as the National Council of Private Enterprise reported.First Quantum scaled back operations last week following disruptions at the mines port and clashes along the mines access road.These actions have significantly impacted the mines functionality.In March, First Quantum and the Panamanian government had reached a new agreement to extend the companys contract.This deal also aimed to increase the governments profit share.
The agreement required Congresss approval to be enacted into law.However, the recent court ruling has now cast doubt on the future of this agreement and the mine itself.