Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The Salvadoran Ministry of Foreign Affairs issued a communiqué on Sunday asking the government of neighbouring Panama, as well as civil society leaders, to open a humanitarian corridor so that cargo truckers that have been stalled in Panama due to the ongoing protests and road closures can return home.
According to the Ministry, for over 30 days, the embassy of El Salvador in Panama has been feeding and caring for the truckers. “However, it has been impossible to find a viable solution to the situation of these drivers who are stranded in Panamanian territory,” the statement reads.
The brief closes with an appeal to the “historic relations of friendship and cooperation” between the two Central American countries to find a prompt solution to the issue.
Since mid-October, thousands of people have been protesting in different parts of Panama against the recent approval of the Cobre Panamá mining concession, owned and operated by Canada’s First Quantum Minerals (TSX: FM).
Early this Sunday, alleged activists attacked workers leaving the mine in an incident that left about eight people injured, according to a union leader.
The land and sea protests have also blocked the delivery of crucial supplies to the mine, which forced First Quantum to halt operations again this week.
In addition to truckers, the rallies have also affected farmers, schools, emergency services and a long list of businesses unable to keep up with activities due to a lack of staff and supplies, stranded along the many blocked routes.
Protestors claim the mining contract was fast-tracked with little public input or transparency, and say they are worried about the potential environmental impacts of the giant operation. Thus, they are asking the Laurentino Cortizo government to repeal Law 406, which governs the concession and grants First Quantum the right to mine copper for 20 years, with the option of an additional 20 years. It also guarantees a minimum annual income of $375 million to the government.
A decision on the future of the operation is expected soon, as the Supreme Court of Panama began deliberations on Friday on several constitutional challenges to the contract signed in October.
Mining.com’s analyses show that a ruling against the mine would have vast implications. Uncertainty around Cobre Panama has wiped about C$10 billion of First Quantum’s market value, almost 50% of it, in about a month. It could also be a blow to the Central American nation as the mine accounts for about 5% of its GDP and makes up 75% of Panama’s export of goods, supporting at least 40,000 jobs, directly and indirectly.
Cobre Panamá started commercial production in 2019, is First Quantum’s top money-maker and accounts for about 1.5% of global copper output. At full capacity, it can process 85 million tonnes of ore annually and produce more than 300,000 tonnes of copper each year. Gold, silver, and molybdenum are also recovered.
Currently, the complex includes two open pit mines, a processing plant, two 150MW power stations and a port.
