Panama President Signs Indefinite Moratorium on New Mining Concessions Amid Protests; Canadian Mine Unaffected

Moratorium Aims to Protect Environment, Indigenous Peoples; Cortizo’s New Law Forbids Renewal of Existing Concessions But Allows Operations for Minera Panama's Copper Mine Despite Protests.

Panama's President, Laurentino Cortizo, signed into law an indefinite moratorium on new mining concessions, which also prohibits renewing current concessions but allows Minera Panama to operate a copper mine for 20 years, with the possibility of an additional 20-year extension.
Environmentalists claim the Minera Panama copper mine, located in the state of Colon, threatens to destroy the surrounding jungle and jeopardize local water supply.
Protests originated from the controversial contract with Minera Panama, a subsidiary of Canadian mining company First Quantum, and have drawn support from Indigenous groups and various industry sectors.
The moratorium does not affect the contract with Minera Panama, as the constitutionality of this contract is being reviewed by Panama's Supreme Court, potentially avoiding multi-million dollar legal liabilities from the contract's annulment.
The copper mine accounts for 1% of global copper output and is critical for electric vehicle production, stirring concerns from global investors and reducing First Quantum Minerals' market value by about 40%.
Although a total ban on new mining concessions was introduced, the fate of the existing contract with Minera Panama remains uncertain and is subject to legislative and judicial decisions.