Panama’s National Assembly cast a second favourable vote regarding an indefinite moratorium on new mining activities this past Thursday. However, contentious decision was made to exclude an article from the bill that could have nullified a disputed mining contract, a subject of nationwide protests in the previous fortnight.
The bill, which initially included a clause to revoke the government’s agreement with Minera Panama, a subsidiary of the Canadian mining firm First Quantum, had already weathered a second round of debate on Wednesday. However, lawmakers made a reverse move on Thursday, pushing the bill to a secondary debate without the clause concerning the Minera Panama contract.
Legal practitioners applauded this amendment, cautioning that the cancellation of the contract through new legislation could subject the government to steep legal charges amounting to millions of dollars. They assured that potential liabilities could be evaded if the country’s Supreme Court adjudicates the original contract as unconstitutional in any of the eight cases filed against the agreement thus far.
The moratorium bill, absent any further proposed changes, is set for a third and conclusive discussion, followed by the final assent from President Laurentino Cortizo. Given that the Assembly had technically gone into recess earlier in the week, it is projected that Cortizo will mobilise an additional extraordinary session for the debate. Awaiting similar attention is another bill, which proposes a public referendum on the contract.
President Cortizo granted final approval of the contract, enabling Minera Panama to perpetuate operations at an open-pit copper mine located in Colon state for two decades, with a potential extension of another twenty years, back on October 20. Environmental activists argue that the mine poses serious threats to the dense jungle in its vicinity and jeopardises local potable water sources.
Nationwide protests raged on Thursday, attracting the backing of indigenous communities and unions across the education, construction, and medical industries.
