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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

Washington Imposes Visa Ban on La Modelo Director Amid Crackdown in Nicaragua

The United States government announced Wednesday that it has imposed visa restrictions on Roberto Clemente Guevara Gómez, director of Nicaragua’s largest prison, La Modelo, for his involvement in actions that violate human rights.

In a statement, U.S. Secretary of State Marco Rubio said the measure is intended to promote accountability for abuses committed under what he described as the “Murillo-Ortega dictatorship” against political prisoners.

Rubio specified that Guevara Gómez was designated for participating in “a gross violation of the human rights of a political prisoner.” The sanction was issued under the 2024 Department of State, Foreign Operations, and Related Programs Appropriations Act, which bars the sanctioned individual — and potentially immediate family members — from entering the United States.

“United States demands the immediate and unconditional release of all political prisoners unjustly detained in Nicaragua,” the statement added.

Ongoing tensions between Washington and Managua

Washington rejected Nicaragua’s November 2021 elections, in which President Daniel Ortega and his wife, now co-president Rosario Murillo, were reelected while seven potential challengers were in prison.

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Relations between the two countries remain tense amid expanding U.S. sanctions and increasing diplomatic pressure on the Nicaraguan government.

On January 10, marking Ortega’s 19 years in power, Nicaragua released “dozens of detainees,” including political prisoners. The move came one day after the U.S. Embassy in Managua stated that “more than 60 people” remain “unjustly detained or disappeared” in the Central American nation.

U.S. officials have continued to push for the “unconditional release” of political prisoners rather than selective or temporary releases.

Ortega, 80, governs alongside Murillo with consolidated authority, having strengthened executive power through constitutional reforms and security measures, while the opposition has been weakened by imprisonment, exile, and the revocation of citizenship and property rights.

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Central America

Guatemala’s Attorney General Consuelo Porras Loses Bid for Constitutional Court Seat

Guatemala’s attorney general, Consuelo Porras, who has been sanctioned by the United States over corruption allegations, lost a key vote on Monday in which a public university selected two of the 10 magistrates for the country’s highest constitutional court. However, she could still seek a seat through another nominating body.

The election of five full magistrates and five alternates to the Corte de Constitucionalidad (CC) is taking place gradually over more than two months and is considered crucial in the ongoing struggle for control of Guatemala’s judiciary, which critics say has long been influenced by a political and economic elite accused of corruption.

According to results announced at a press conference, the governing council of the Universidad de San Carlos de Guatemala (USAC) rejected Porras, who had applied as either a full or alternate magistrate, and instead chose two candidates aligned with the university rector. The vote was held at a hotel in Antigua, about 35 kilometers from the capital.

Despite the setback, Porras — whose term as attorney general ends on May 16 — could still be nominated to the Constitutional Court by the Corte Suprema de Justicia, which appoints two magistrates. The remaining six are selected by the president, the bar association and Congress.

“It’s always a possibility,” the 72-year-old lawyer said days earlier when asked by reporters whether she would seek nomination through another institution if she lost the USAC vote.

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Porras has been sanctioned by Washington and the European Union for allegedly attempting two years ago to block the inauguration of President Bernardo Arévalo and for pursuing legal actions against anti-corruption prosecutors, judges, journalists and social leaders since taking office in 2018.

The USAC vote was controversial because most members of the university’s governing council are serving beyond the expiration of their terms. Students, academics and social activists staged protests against Porras’ candidacy.

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Central America

Teens visit ETESAL substation to learn about responsible energy use

Within the framework of World Energy Day, teenagers from the institutional care center Ciudad Niñez y Adolescencia (CNA), run by the Consejo Nacional de la Primera Infancia, Niñez y Adolescencia (Conapina), took part in an educational visit to a substation operated by Empresa Transmisora de El Salvador (ETESAL) in Santa Ana.

The aim of the activity was to give participants first-hand knowledge of how the country’s electricity transmission system works and to highlight the importance of responsible energy use.

During the tour, the group learned about the process that delivers electricity to homes, businesses, and industries. They were also introduced to specialized technical equipment and the safety measures required to ensure an efficient and reliable service.

Before the guided visit, the teenagers attended two informative talks and an environmental awareness session focused on the relevance of responsible energy consumption and its impact on the environment.

According to Nelson Menjívar, head of Conapina’s programs unit, the initiative serves a dual purpose. “It has two objectives: a recreational component and an educational one, so that adolescents can learn about the work carried out by ETESAL and how some of the resources they use at home are generated. This is in keeping with the guarantees established under the Crecer Juntos law; we ensure those rights for children,” he said.

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Menjívar stressed that these activities help young people better understand how essential services function in their daily lives while promoting efficient consumption habits and a culture of environmental respect and care.

The event is part of the principle of shared responsibility set out in the Crecer Juntos law, promoted by the administration of Nayib Bukele, which states that families, society, private companies, and the State must work together to safeguard the comprehensive well-being of children and adolescents.

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