Zorel Morales is concerned about the existence of 130,000 tons of toxic material.
This is partially processed copper ore from a mine in Panama that has been closed since the end of 2023.
“The chemical reactions that generate hazardous gases and an increase in material temperatures “They pose environmental risks,” says Morales, president of the Panama Mining Chamber.
He claims that the toxic substances “threaten the health and safety of the staff” who still work there.
The substance, called “copper concentrate”, is finely ground copper ore treated to increase its copper content for export.
In addition to the danger of releasing toxic sulfur dioxide gas, mere exposure to dust particles from the concentrate can damage the respiratory system of a person, and is also harmful to aquatic life.
What happened
The material remains stored in Cobre Panama, a huge open-pit copper mine closed since December last year, when the country’s Supreme Court ruled unconstitutional a new 20-year concession to operate the facility.
Following the ruling, the government quickly forced the mine to close, leaving only maintenance staff.
The order came after thousands of people took to the streets across the country in October and November 2023 to protest against the mine, which they said was damaging to the environment.
The facility, one of the largest copper mines in the world, employed about 7,000 people and encompassed the 1% of world production of this metal.
It opened in 2019 and is owned by Canadian firm First Quantum Minerals.
Located deep in a rainforest near the Caribbean coast of Panama, First Quantum invested $10 billion dollars at the mine, including new infrastructure such as roads, buildings and machinery.
The company is demanding the right to export its existing copper concentrate and has filed two international arbitration claims against Panama, although it says it prefers to open a dialogue with the new government that took power in July.
The “urgent matter” to be resolved
The dispute over the copper concentrate is centered on who owns it, the Canadian company or Panama.
“We look forward to continuing to work with the new government to address the situation regarding the mine,” First Quantum spokeswoman Maru Gálvez said in a statement.
He specified that “in particular, it is important to resolve the status of the copper concentrate that remains at the mine site and that all parties have agreed that It is an urgent matter”.
A government spokesman responded that they are still assessing the situation and are not granting interviews. The new president, Jose Raul Mulinohas not yet offered a clear message on how it wants to resolve the problem.
Dulcidio de la Guardia, former finance minister of Panama, says he feels frustrated by the situation.
“Cobre Panamá was the most important foreign investment in the country after the Panama Canal,” said de la Guardia, who headed the portfolio between 2014 and 2019.
He claims that the business represented 5% of the country’s GDPwhich meant around $5 billion of dollars in direct and indirect contributions to the economy.
Michael Camacho, meanwhile, is a leader of the Utramipa miners’ union and one of the 1,400 people still working at Cobre Panama as part of the maintenance program, which costs First Quantum between $15 million and $20 million dollars a month.
Camacho wants the government to approve a plan for the preservation and safe operation of the mine.
“In December, More than 6,000 miners were left without work when operations stopped. I urge the new president, José Raúl Mulino, to listen to the concerns of the communities near the mine who want to get back to work.”
Greta Thunberg and DiCaprio
On the other hand, environmental activist Raisa Banfield, who participated in the protests that led to the closure of the mine, is convinced that the best thing for the country is to close it.
“The future of Panama does not depend on mining. The future of Panama depends on its biodiversity”, he proclaims.
And he believes that the country needs a new business model: “I think we are recovering our identity, far from large projects like the Panama Canal and from foreign companies that appropriate our resources to satisfy their economic model.”
She and other protesters received support from Climate activist Greta Thunberg and Hollywood actor Leonardo DiCapriowho shared a video asking for the “megamine” to stop its operations.
Banfield wants the new government to invest in ecotourism infrastructure so that Panama can prosper like its neighbor Costa Rica.
However, others believe that the mine’s closure was not solely due to environmental reasons.
Corruption?
Samuel Valdés is a biologist and owner of the Biodiversity Consultant Group, a consulting firm hired by First Quantum to conduct studies to help minimize the environmental impact of the enormous facility.
“There has been a lot of misinformation surrounding the mine,” he says.
Valdés says that part of the opposition to the project was due to suspicions about the previous government.
“Many people I thought the previous government was corruptand that’s why they began to distrust the (close) relationship he had with the mine.”
He added that the rivers surrounding the mine are in optimal condition thanks to abundant rainfall and all reports show that they contain a variety of fish, algae and shrimp.
He admits, however, that sometimes There have been isolated incidents that affected specific areas.
He also believes that there are tensions between different ethical points of view.
“The fight against the mine was carried out by people from the cities and they have a stereotypical idea of how rural people should live. Having worked with locals for the past 10 years, I can say that their lives have improved greatly thanks to the mine.”
Uncertainty about the future
An estimated 40,000 people depended on the mine for their income, including the companies that provided services to them.
Valdés had to lay off 60 people, including many scientists, when he closed the facility.
According to the owner of the consultancy firm, the problem of the surplus of copper concentrate was due to the fact that the mine had to close immediately.
“The problem here was that the mine was a bit like a busy kitchen that suddenly closes and the food is left on the side or in the oven. The processes stopped mid-cycle”.
Some argue that the mine should be reopened, just so it can be closed again in a more orderly manner. Valdés obviously wants production to restart and then remain open.
This uncertainty is not helping Panama’s reputation as a country for international investment.
The Fitch agency stripped Panama of its investment grade credit rating because the closure of the copper mine had undermined economic growth.
Whether the new Panamanian government will reopen the mine to regain investor confidence or keep it closed remains an open question.
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