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.
Staff and contractors at First Quantum Minerals Ltd.’s Panamanian copper mine staged demonstrations across the country Wednesday, demanding the government protect their jobs or ensure they receive compensation if they are laid off.
Workers marched through city streets, blocking roads and waving flags, a day after the Supreme Court ruled the law governing a new contract for the Cobre Panama mine was unconstitutional. Some carried signs that read “You also use 100% Panamanian copper.”
The backlash from members of the mine’s 7,000-strong workforce — as well as suppliers and contractors that account for a total of about 40,000 jobs — comes as anti-mining protesters celebrate President Laurentino Cortizo’s pledge to respect the court’s ruling and begin the process of closing the mine.
While environmentalists and some other non-mining labor unions have held protests since Oct. 20 when Congress passed the new contract, workers are fighting to keep their jobs — or at least receive proper compensation.
“This is a source of income for more than 40,000 households, and we don’t have a response as to what is going to happen to us,” union leader Michael Camacho told reporters. “We demand the government and the labor ministry respect our rights.”
Samuel Diaz, a spokesmen for suppliers of the mine, said more than 2,500 companies will be affected by the closure, and that many of those firms have already seen revenue decline over the past month amid uncertainty about the operation’s future.
Meanwhile, a construction workers union that’s against the mine vowed to stay on the streets until it’s closed. Other groups of anti-mine demonstrators, including environmentalists and civil groups, celebrated the court’s decision Tuesday night, blocking roads and setting off fireworks.
The $10 billion mine finds itself at the center of a tussle between economic development and prosperity and protecting the environment and national sovereignty. The mine accounts for more than 1% of global mined copper and delivers the government hundreds of millions of dollars a year in revenue.
First Quantum weighed in Wednesday, saying in a statement that the court’s ruling and Cortizo’s comments “do not take into account the rights of thousands of Panamanians who depend on the Cobre Panama mine and mining for their livelihood.”
(By Michael McDonald and James Attwood)
Related: Panama orders First Quantum’s copper mine closure
6 Comments
Mike
All these so called environmental groups calling the end to oil are now trying to shut down mines that mine for those ingredients to make batteries . Stop the woke movement is what’s needed today
Rosa vega
But most of these workers are foreign workers because Panama didn’t have prepared people to take those jobs. Panama never was a mining country, so the schools or universities don’t prepare students for mining jobs. Most of the miners are from Peru among others.
Andy S
Check your facts Rosa. No more lies please. Your Instagram feed is not good enough.
lemanyan
lies,lies ,lies . Wait for China to bail out Panama , so they will have the deposit and then we will see what standard they will bring in . SUNTRAC was able to wash your mind .So much ignorance in a country believed to be advanced .
Yalitza Polanco
First Quantum & Panamá contract incurrs in more than 25 violations to not only Panamenian constitution but internationals laws that Panama signed. The most important to me is that they are mining a protected area called biological corridor. Which is the natural high way that several species of fauna use year after year to move from North to south during seasons changing. Panamá is too small for mining Mr. Mc Donal. The biggest part of their workers are foreign. We Panamenian don’t want mining here. First Quantum must leave.
lemanyan
It is hard to believe than in a civilised country like Panama in 2023 people are driven by lies . To say that Panama was not prepared for mining is true .To say that majority of the worker are foreigner is a lie. Do you think that it is normal that Panama lawyers approved the contract twice. It took more than 20 years before your law maker make their mind about the contract .Because 20 years latter they saw that someone had invested Billion of Dollars and it is an easy money to get . The damage made is irreversible . But marke this : Panama will refund this money and sooner or latter someone will mine this deposit . Maybe China will -in which case even the truck drivers and the chef will come from China . Everything has a cost including voting people in who have no ground to stand on .