Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Illegal mining near First Quantum Minerals Ltd.’s Cobre Panama copper mine has soared since the facility suspended operations last year, an industry group warns.
More than 250 instances of illegal mining have been identified in the rainforest surrounding Cobre Panama this year, according to Zorel Morales, head of the nation’s mining chamber. That’s a 317% increase from 60 instances in 2023. The illegal miners, Morales said, are mostly searching for gold.
Morales and his trade organization, which includes First Quantum, are pushing for a quick resolution on Cobre Panama’s future. The massive mine has sat idle since November after Panama’s Supreme Court ruled that its operating contract was unconstitutional. The closure sparked mass layoffs, which have left the mine’s surroundings largely unattended while First Quantum waits for negotiations to resume under President Jose Raul Mulino’s new administration.
Mulino, however, has said he won’t start talks with the Canadian mining company until the new year, as the government is prioritizing other pressing matters like social security reform and water supply for the Panama Canal.
That timeline will clash with the mine’s need for more immediate action, Morales said in a Monday phone interview. The facility is holding about 121,000 tons of mined copper concentrate that can present environmental risks, said Morales.
“This topic cannot be left for tomorrow,” he said.
First Quantum declined to comment, and a government spokesperson did not immediately reply to a request for comment.
Panamanian officials have already raised concerns about illegal mining in the area since Cobre Panama’s closure. Security minister Frank Abrego warned that illegal miners are using unsafe procedures, as well as chemicals like cyanide, according to cabinet meeting minutes released by Mulino’s administration.
(By Valentine Hilaire and Jacob Lorinc)
Read More: Barrick CEO open to being a partner on the Cobre Panama mine
Comments