Central America

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.

Related Topics:Central America Mine Panamá

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Panama and Costa Rica strengthen border alliance to combat organized crime

Panama and Costa Rica strengthened a strategic alliance on Saturday aimed at enhancing border security and jointly tackling transnational organized crime, following a high-level bilateral meeting held in Paso Canoas, in Panama’s Chiriquí province, according to Panama’s Ministry of Public Security.

“The effort strengthens digital border control and enables a more effective response to organized crime,” said Frank Abrego, Panama’s Minister of Public Security. He added that “operational integration between both countries increases anticipation and response capacity to threats.”

During the meeting, Abrego and his Costa Rican counterpart, Mario Zamora Cordero, reaffirmed their commitment to deepen bilateral cooperation, particularly in territorial protection and citizen security.

Paso Canoas is a key customs hub in the region, handling goods arriving in Panama through the Panama Canal and the Colón Free Zone, which are then distributed across Central America, as well as regional exports.

Zamora described the meeting as “effective and productive,” emphasizing the importance of sustained police cooperation to confront criminal structures operating in the region.

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As part of the agenda, authorities inaugurated a new operations center for the National Border Service in the Progreso sector. The facility is designed to strengthen monitoring and control through surveillance technologies such as cameras and drones, as well as real-time information sharing between both countries.

Authorities also announced the delivery of eight vehicles to reinforce patrol operations, along with intensified joint operations at key border points.

Officials stated that these measures will increase operational presence, improve response capabilities, and enhance security for border communities.

Both ministers agreed that coordination between Panama and Costa Rica has helped maintain a “calm, stable, and developing” border, and announced further meetings, including one in San José, to advance new security agreements.

In this context, in February 2024, both countries inaugurated the Paso Canoas Integrated Control Center on the Costa Rican side, a 14,000-square-meter facility designed to streamline procedures and manage the daily flow of around 200 cargo trucks and 800 people crossing from Panama.

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The meeting brought together senior officials from both nations’ security forces, who advanced joint strategies to combat threats such as drug trafficking, human trafficking, and smuggling, through coordinated action and intelligence sharing.

This bilateral effort underscores both countries’ commitment to ensuring citizen security and sends a clear message of joint action against organized crime.

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“At the moment, he is being evaluated by the Brazilian Football Confederation and by me. He still has two months to prove he has the conditions to play in the next World Cup,” Ancelotti said.

Neymar, 34, Brazil’s all-time leading scorer with 79 goals in 128 appearances, was left out of the most recent national team call-up for friendlies against France and Croatia. He is also still working to regain full fitness with Santos FC.

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“Neymar has made and continues to make history in Brazilian football. He is a great talent, and it is normal for people to believe he can help us win the next World Cup,” the Italian coach added.

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Seven arrested in Guatemala over disappearance of six near Mexico border

Authorities in Guatemala arrested seven individuals allegedly linked to the disappearance of six Guatemalans, including a 16-year-old minor, according to a police statement.

The arrests took place in the border city of Malacatán, near the nearly 1,000-kilometer frontier shared with Mexico, a region increasingly affected by criminal activity.

Police reported that ten firearms were seized from the suspects, who are believed to be connected to the disappearance of the six victims. According to witness accounts, the missing individuals worked on a farm in Malacatán and were taken away in a vehicle whose license plate matches that of the one used by those detained.

The border area has seen escalating violence involving organized crime groups. In August 2024, following the unprecedented displacement of Mexican farmers into Guatemala to escape clashes between rival drug cartels, both countries agreed to carry out joint security operations along the shared border.

Despite this cooperation, tensions have arisen. On June 8, security forces from the Mexican state of Chiapas crossed into Guatemalan territory during an anti-crime operation that left four suspected criminals dead. The incident prompted a formal protest from Guatemala, after which Mexico issued an apology.