Canadian mining company First Quantum Minerals asked Panama on Thursday to allow it to suspend the contracts of around 7,000 employees at Central America’s largest copper mine after the contract to renew its concession was declared unconstitutional.
The company justified its demand by denouncing “road blockades” that had forced it to “temporarily halt” production at the site in recent days.
In this regard, First Quantum Minerals requested from the Ministry of Labor “the suspension of the contractual effects of approximately 7,000 employees,” which would mean a cessation of salary payments, the company said in a press release.
The unions called on the ministry not to accept the group’s request.
Parliament’s approval in October of the 40-year extension of the concession agreement for this gigantic exploitation led to the largest demonstrations in Panama since the overthrow of dictator Manuel Antonio Noriega in 1989 due to the financial conditions granted and environmental concerns.
On Tuesday, the Supreme Court finally declared the law governing this contract “unconstitutional.” President Laurentino Cortizo, criticized for his “inaction” in the face of the blockades, then promised an “orderly and safe” closure process for the mine.
This open-air mine, 240 kilometers from the capital, produces about 300,000 tons of copper concentrate annually, accounting for 75% of Panama’s exports and 5% of GDP.
Trade and Industry Minister Federico Alfaro Boyd, the main person in charge of negotiations with the Canadian company, resigned on Thursday, warning that the Supreme Court’s decision “could have serious consequences for the country.”
FQM had highlighted that the mine creates around 50,000 jobs and that the new contract provides for annual contributions to the state of at least $375 million, ten times more than the previous agreement in 1999