In a significant evolution in the mining saga of Panama, the National Assembly cast a second affirmative vote last Thursday, granting an indefinite halt to new mining activities. However, the legislative body made an exception, omitting a particular clause that sought to nullify a contentious mining contract, sparking uproar and nationwide extempore in the preceding fortnight.
This controversial bill, dealing primarily with the indefinite moratorium was discussed hotly in a secondary debate on Wednesday. It originally contained an article that proposed to annul the government’s agreement with Minera Panama. This local firm stands as a subsidiary of First Quantum, a known Canadian mining conglomerate.
However, in a surprising turn of events, Legislators decided to backtrack on Thursday. The bill was redirected to a second debate, from which the article concerning the Minera Panama contract was consciously removed.
This reversal was met with approbation amongst a bevy of legal experts, who cautioned that terminating the contract through the new act could potentially leave the government vulnerable to substantial legal repercussions amounting to millions of dollars. These experts suggested that such fiscal menaces could be averted if the Supreme Court ruled the primal contract as constitutionally invalid, based on one or more of the eight cases lodged against the agreement to date.
Now, this revised bill, having omitted the critical stipulation, awaits its final discourse. According to the parliamentary protocol, no further alterations can be made once the bill reaches its third debate. Following this, President Laurentino Cortizo will render the final sign of approval. Given that the Assembly had earlier commenced their recess for the week, Cortizo may be compelled to convene an extraordinary session for this critical debate. A separate bill that proposes a popular referendum for the dubious contract is also in the pipeline for discussion.
Despite the heated disputes and protests, Cortizo had earlier accorded his final sanction to the controversial contract on October 20. This nod empowers Minera Panama to operate an open pit copper mine in Colon for the next two decades, with an additional chance to renew the lease for another twenty years. However, environmemental activists contend that such actions pose a risk to the dense, neighboring woodland and jeopardize the sanctity of the local potable water supply.
Even after the amended bill, massive protests continue to rage nationwide, drawing impassioned advocates ranging from the Indigenous communities to representatives from an assortment of sectors, including education, construction, and medical fields.
