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Central America’s biggest mine faces closure over tax spat

Photo: Luis Acosta / AFP

| By AFP | Francisco Jara |

Rising up through the lush vegetation of Panama’s Caribbean coast, a 125-meter chimney serves as a beacon for helicopters approaching the largest mine in Central America, which faces closure next week over a contract dispute.

Gigantic 400-tonne trucks slowly wind around the stepped slopes of a massive gash in the earth one kilometer wide, the ochre and grey of the copper mine standing in stark contrast to the verdant jungle surrounding it.

The activity could grind to an expensive halt in a matter of days.

Canadian mining giant First Quantum Minerals has until next Wednesday to sign a new contract with the government, which is demanding the company multiply the taxes it pays by 10.

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If the parties do not agree, the disagreement could halt the work of a mining project considered the largest private investment in Panama’s history, contributing four percent of the country’s GDP and 75 percent of export revenues.

“We have been given a deadline to sign the new contract by December 14, to accept the new terms,” First Quantum’s manager in Panama, Keith Green, who is Scottish, told AFP.

“We intend to reach an agreement, but negotiations are a bit deadlocked,” he added.

First Quantum, one of the largest copper miners in the world, began commercial copper production at the site in Donoso in 2019, through its subsidiary Minera Panama.

It has spent $10 billion on earthworks, construction buildings to house more than 7,000 employees, the purchase of heavy machinery, a power plant, a port for deep-draft merchant ships, access roads, and re-forestation plans.

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‘Fair income’

President Laurentino Cortizo in January announced plans to toughen the conditions of the mining license, with a new contract that would oblige the mining company to pay “at least” $375 million to Panama annually — ten times what it is currently paying.

“Panama has the inalienable right to receive fair income from the extraction of its mineral resources, because the copper is Panamanian,” he said.

This mine is “the biggest in Central America,” producing 300,000 tons of copper concentrate per year, said Green.

The deposit, discovered in 1968, lies on the Caribbean coast, 240 kilometers by road from the capital Panama City.

The company, listed on the Toronto Stock Exchange, built the Punta Rincon International Port next to the mine to transport the copper by ship, due to a lack of roads connecting the Colon port, 40 kilometers (25 miles) away.

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Despite the uncertainty over the mine’s future, activity has not slowed and the company has continued to invest in the site.

A new 200-tonne drilling rig — as tall as a three-story building — was inaugurated in a ceremony on Tuesday, causing heavy air traffic.

Helicopter pilot Oldemar Arauz explains that most officials visiting the mine prefer the one-hour air trip to the four-hour drive on a narrow road from the capital.

The drilling rig, made in the United States by the Swedish company Epiroc, cost $6 million, and was transported to the mine in 10 trucks. 

“Latin America has 200 of these drills, 50 in Chile and now three in Panama,” said Epiroc’s Latin America manager Hans Traub.

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The drill was assembled by Chilean engineer Alex Gonzalez, who previously worked in Chuquicamata, the world’s largest open pit copper mine, situated in the Atacama desert, which has been operating since 1915.

Central America does not have the same mining tradition seen further south. Mining is illegal in Costa Rica and El Salvador, and while there is much potential for growth in Panama, the industry’s future is now hanging in the balance.

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Central America

El Salvador to host World Cup qualifiers vs. Guatemala and Panama at Estadio Cuscatlán

El Salvador’s national football team will host its final round World Cup qualifying matches against Guatemala and Panama at Estadio Cuscatlán, the honorary president of the National Sports Institute (INDES), Yamil Bukele, announced Thursday via a statement on his X account.

The official explained that this decision comes after the American rock band Guns N’ Roses, originally scheduled to perform at Estadio Cuscatlán on Saturday, October 4, will now hold their concert at Estadio Jorge “El Mágico” González. This change allows both of La Selecta’s qualifying matches to be played at the “Coloso de Monserrat.”

“After a series of efforts and in response to popular demand, we are pleased to announce that our senior national team’s CONCACAF World Cup qualifying matches next October (Oct. 10 vs. Panama and Oct. 14 vs. Guatemala) will take place at Estadio Cuscatlán,” the statement reads.

Bukele also thanked the event promoters and the band for agreeing to the stadium change. “We sincerely thank Guns N’ Roses and StarTicket for agreeing to move the concert originally scheduled for October 4 at Estadio Cuscatlán,” the statement adds.

Additionally, Bukele expressed gratitude to the FESFUT Regularization Commission for their efforts with CONCACAF to make this possible, and he urged fans to stay tuned to official channels to purchase tickets and support La Selecta in their World Cup qualifying campaign.

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Central America

Honduran president Xiomara Castro suspends activities due to influenza

Honduran President Xiomara Castro announced on Thursday that she has “temporarily” suspended her public activities due to a severe influenza virus.

“A strong influenza virus requires me to rest, trusting that I will be fully recovered for the grand celebration of our National Independence Day” next Monday, Castro stated on the social media platform X.

The president had planned to participate in several inaugurations across the northern, central, and eastern regions of the country throughout the week. She added that “these events will be rescheduled for new dates.”

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Central America

Nicaragua’s government expels bishops, priests, and nuns in religious persecution

At least 261 religious figures, including the president of the Nicaraguan Episcopal Conference, Carlos Enrique Herrera, have been expelled as part of the persecution by Daniel Ortega and Rosario Murillo’s regime against the Catholic Church, reported the NGO Colectivo Nicaragua Nunca Más in its report Faith Under Fire.

The report details that among those expelled are bishops Silvio Báez, Rolando Álvarez, Isidoro Mora, as well as the Apostolic Nuncio in Managua, Waldemar Stanislaw Sommertag, along with approximately 140 priests, over 90 nuns, ten seminarians, and three deacons from different dioceses in the country.

“Since the expulsion of Nuncio Sommertag in March 2022, relations between Nicaragua and the Vatican have significantly deteriorated,” the NGO noted.

The report also documents the closure of 5,609 non-profit organizations, of which 1,294 were religious, including churches, universities, schools, clinics, and humanitarian organizations. Most of these had their assets confiscated by the Sandinista government. Additionally, the telecommunications regulator TELCOR shut down 54 media outlets, including 22 religious radio stations and TV channels.

Repression has extended to other religious denominations, with forced disappearances and criminalization of evangelical pastors, control over temples, media censorship, fiscal pressure, property confiscation, and the cancellation of legal status for the Moravian Church. Pastor Rudy Palacios remains in detention as part of this pattern of persecution.

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The NGO emphasized that churches, especially the Catholic Church, played a key role in the 2018 national dialogue, denouncing abuses and providing refuge to injured protesters, which fueled the government’s hostility.

In 2023, Pope Francis described Ortega’s regime as a “blatant dictatorship”, to which the Nicaraguan president responded by dissolving the Society of Jesus and labeling the Church as a “mafia” and “anti-democratic.”

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