PANAMA CITY (AP) — Panama’s Supreme Court ruled unanimously Tuesday that a 20-year concession for a Canadian copper mine that has been the subject of widespread environmental protests is unconstitutional, and the president said proceedings to close the mine would be initiated later.
Opponents of the Cobre Panama mine argued it would damage a forested coastal area and threaten water supplies. The announcement of the nine-member court’s decision after four days of deliberations drew cheers from a crowd waiting outside, waving Panamanian flags.
“This is what we’ve been waiting for,” protester Raisa Banfield said after what she called an agonizing wait. “The president must shut down (my) operations today.”
Minera Panama, the local subsidiary of Canada’s First Quantum Minerals that operates the mine in central Panama, said in a statement that “Cobre Panama recognizes the court’s decision.”
“We would like to reiterate our unwavering commitment to regulatory compliance in all aspects of our operations in the country,” the company wrote. “We will provide further comment as further details of the ruling are released.”
Panamanian President Laurentino Cortizo told the nation on Tuesday that the court’s decision, once officially received by his government, would be published in the official gazette and a process would be initiated “for an orderly and safe closure of the mine.”
The mine employs thousands and generates 3% of Panama’s gross domestic product.
In March, Panamanian lawmakers reached an agreement with First Quantum that allowed Minera Panama to continue operating the massive copper mine for at least 20 years. The open-pit mine was temporarily closed last year when talks between the government and First Quantum over payments the government wanted failed.
The contract, which was finally approved on October 20, allowed the subsidiary to continue operating the mine in a biodiverse jungle on the Atlantic coast west of the capital for the next 20 years, with the possibility of an extension for another 20 years if the Location remains productive.
The dispute over the mine led to some of the largest protests in Panama in recent years, including a blockade of the mine’s power plant. Protesters also blocked parts of the Pan-American Highway, including a section near the border with Costa Rica.
Shortly before the verdict was announced, they opened the road to allow freight cars to pass through.
Minera Panama said in a statement earlier this month that small boats had blocked its port in Colon province, preventing supplies from reaching the mine. Marine police reported that a ship carrying coal decided to turn back before being dispersed due to “hostility from a group of protesters who threw stones and blunt homemade objects from their boats.”
The protesters, a broad coalition of Panamanians, feared the mine’s impact on nature and particularly on water supplies.
After the protests began, the government almost passed a law that would have revoked the treaty, but backed down in a debate in the National Assembly on November 2nd.
A court ruling declaring the contract unconstitutional was the last chance for opponents to terminate it.
The Canadian government said it respects Tuesday’s decision and is closely following contract negotiations. In an email, Jean-Pierre J. Godbout, a spokesman for the government’s global affairs department, said the government “consistently hopes for an amicable solution that is beneficial to all parties.”
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Rob Gillies in Toronto contributed to this report.
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