Panama president asks voters to decide on contentious First Quantum mining contract By Reuters

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<span>© Reuters. FILE PHOTO: Panama’s President Laurentino Cortizo Cohen addresses the 78th Session of the U.N. General Assembly in New York City, U.S., September 19, 2023. REUTERS/Eduardo Munoz/File Photo</span><br />
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<p>By Valentine Hilaire and Elida Moreno</p>
<p>PANAMA CITY (Reuters) -President Laurentino Cortizo said on Sunday Panama would hold a referendum to decide whether to scrap a contract with Canadian miner First Quantum (NASDAQ:)’s local unit following days of protests by thousands of people opposed to the open pit mine project.</p>
<p>The vote will take place Dec. 17 and its result would be binding, Cortizo said in a video message. </p>
<p>“I’ve respectfully listened to those who oppose the contract with Minera Panama,” Cortizo said, using the name of First Quantum’s local unit. </p>
<p>Neither First Quantum nor Minera Panama immediately responded to requests for comment.</p>
<p>Panama’s government and the miner had agreed on a contract which would guarantee the Central American nation an annual income of $375 million while allowing First Quantum’s local unit to operate the Cobre Panama project, an open-pit copper mine, for at least 20 years.</p>
<p>Protesters have criticized both the deal and the mine’s environmental costs, even after Cortizo on Friday issued a decree rejecting all new mining projects. </p>
<p>Critics countered that the move would not affect the approved First Quantum contract.</p>
<p>On Saturday, Minera Panama voiced concern after protesters on boats approached the international Punta Rincon port where it operates. </p>
<p>“We are deeply concerned by this incident, which represents a significant threat for our operations and the safety of our workers,” it said in a statement on Saturday, calling the actions “illegal and violent.” </p>
<p>In a statement late Sunday, Cortizo’s office noted that the contract was first established in 1991.</p>
<p>After Cortizo’s announcement, Panama’s main workers’ union said its members will keep protesting in the streets until the contract is annulled.</p>
<p>“There’s no maneuver in this fight that will deceive the people,” a union representative said.</p>
<p>The Cobre Panama mine’s activity accounts for nearly 5% of the country’s economy, and last year represented about half of First Quantum’s EBITDA.</p>
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