Panama's Supreme Court Declares Mining Contract Unconstitutional

Closure of Canada's First Quantum Minerals' subsidiary, Minera Panama, to follow as arbitration looms

Panama's Supreme Court has declared a 20-year concession for a Canadian copper mine, operated by Minera Panama, a subsidiary of Canada's First Quantum Minerals, unconstitutional.
The court's decision was based on environmental and human rights concerns, stating the contract violated 25 articles of Panama's constitution.
The ruling will lead to the closure of the largest open-pit copper mine in Central America, a process that President Laurentino Cortizo said will begin in an 'orderly and safe' manner.
The mine's closure is expected to have significant economic impact, as it generated 40,000 jobs and contributed the equivalent of 5% of Panama's GDP.
The Panamanian government and the mining company are headed for arbitration at the World Bank’s international center for arbitration of investment disputes, in Washington D.C.