The Canadian mining company First Quantum Minerals (FQM) announced this Tuesday that it will “review the content of the ruling” of unconstitutionality of the contract that renewed the concession of the largest open pit copper mine in Central America, an agreement that unleashed during the last month the worst protests in Panama in decades.
The mine, which reacted hours after the Supreme Court of Justice of
Panama announced that the contract law was “unconstitutional”, He also added that he “respects Panamanian laws” and that they have “heard the popular outcry,” which is why they reiterated their willingness to have a “constructive dialogue.”
“Given the ruling of the Supreme Court of Justice (CSJ) on the unconstitutionality of Law 406 of 2023, announced on Tuesday, November 28, 2023 (the Ruling), the Company wishes to express that respects Panamanian laws and will review the content of the ruling to understand its foundations,” says a statement.
As experts explained to Efe, The law contract with the Canadian mining company violates more than a dozen articles of the Magna Carta, not only environmental but also public administration.
“There are more than a dozen articles (…) this contract not only violated ecological norms but also fundamental public administration norms such as article 32 of the Magna Carta that establishes due legal process,” lawyer Harley Mitchell told Efe.
(Also read: Panama paralyzes pension increases by not counting on mining income)
The expert explained that “the Executive body can only negotiate contracts in accordance with the law and in this case the law corresponded to the 1969 decree that specifically established that the minerals from Donoso (where the mine is located) should be given in public bidding” and not by direct negotiation, as was done.
In the statement, The mining company recalled that the contract “was the result of a long and transparent negotiation process, with the objective of promoting mutual economic benefits, guaranteeing environmental protection, supporting the conservation of biodiversity, promoting community development, complying with international regulations that govern mining activities, and returning the legal stability and durability necessary to this legitimate investment made in good faith in
Panama”.
Law 406 regulated the exploitation of a large copper mine, an investment of around 10,000 million dollars, according to the company, which exports mineral mainly to the Chinese market and was built in the heart of the Central American Biological Corridor causing irreparable damage to the ecosystem. , according to environmental groups that have been fighting against the enclave for years.
Minera Panamá, a subsidiary of FQM, has already notified of its intention to file two lawsuits against Panama before the International Center for Settlement of Investment Disputes under the Free Trade Agreement between Panama and Canada, as reported on November 26 by the Panamanian Government, which said it was ready to defend the State.
(Also: Protests in Panama: beyond a mine)
The mining company clarified on Monday that the objective of the notification was “merely to comply with the formalities” with the purpose “of opening a dialogue period of at least 90 days between the parties.”
The mine also highlighted this Tuesday that it makes a contribution of more than 50 million dollars “per week,” equivalent to 5% of Panama’s gross domestic product (GDP). In addition, according to the company, they employ more than 7,000 people directly and 33,000 indirectly, contributing almost 20 million dollars per week to local suppliers.
On the contrary, Hundreds of protesters took to the streets of
Panama to celebrate shouting “yes we could” the ruling of the Supreme Court of Justice, which declared the controversial contract “unconstitutional.”
“We feel very satisfied (…) in these 233 pages of ruling we hope to see glorious content for Panama, that defends our environment and defends our nature,” Marta Cornejo, one of the plaintiff lawyers, among the defendants, told Efe. chants from an enthusiastic crowd in front of the Supreme Court headquarters.
(Keep reading: Five key elements about the protests that shake Panama)
“Yes we could” cried the young people, environmentalists, unions and indigenous people, who hugged and jumped to celebrate the decision of the magistrates at the doors of the Gil Ponce Palace, as the Supreme Court of Justice is known, in Ciudad de
Panama.
The celebrations have been replicated in many parts of the country, filling the streets with flags of Panama and clearing most of the roads that had been closed by protesters for weeks, festivities that are expected to last throughout the day.
EFE
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