Central America
Central America’s biggest mine faces closure over tax spat
| 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.
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.
‘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.
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.
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.
Central America
Panama’s President Mulino: “We are regaining international trust” to exit tax haven lists
Panama’s President José Raúl Mulino stated on Tuesday that the Central American country is “regaining international trust” regarding lists that label it as a tax haven, and that it hopes to be removed from these lists in the near future.
“At the international level, we are regaining confidence. Panama is taking firm steps to get off the European Union’s list, thanks to the coordinated work of various institutions,” Mulino said during his first-year report speech before the deputies.
The Panamanian president emphasized that he has “increased” his “engagement” with the Organisation for Economic Co-operation and Development (OECD) “not only with the aim of leaving these lists but also to begin our path toward joining that important group of democratic states and prosperous economies.”
Since taking office on July 1, 2024, Mulino has stressed that he will work to have Panama removed from what he calls “discriminatory” lists that consider it a tax haven. He has even focused part of his official conversations during trips to Europe on this issue.
Currently, Panama has strengthened banking regulations following the 2016 Panama Papers scandal. However, it remains on some lists, such as that of the Netherlands, while it has been removed from others, including the Financial Action Task Force’s (FATF) grey list in 2023.
Additionally, the European Commission recommended in June that Panama be removed from its list of jurisdictions with a high risk of money laundering and terrorist financing. The European Parliament and member states still have a month (extendable to two) to review the proposal, and unless opposed, it will take effect after that period.
Central America
Castro to address FfD4 in Spain as Global Financial Reform takes center stage
Honduran President Xiomara Castro will participate in the Fourth International Conference on Financing for Development (FfD4), to be held in Seville, Spain, from June 30 to July 3, Honduran Ambassador to Spain Marlon Brevé announced on Saturday.
The president is expected to arrive in Seville on Sunday and deliver her address on Monday, according to the diplomat.
Castro will be accompanied by Foreign Minister Javier Bu, her private secretary and son Héctor Zelaya, and Finance Minister Christian Duarte.
Spain is hosting the FfD4 conference at a critical time, as global development cooperation budgets face constraints while humanitarian needs continue to grow due to conflicts, political instability, and the climate crisis.
The conference will bring together world leaders, international organizations, private sector representatives, and civil society, aiming to review and reorient global development financing strategies.
Organized by the United Nations Department of Economic and Social Affairs (UNDESA) through its Office for Financing for Sustainable Development, this high-level forum has been held since 2002 to promote structural financial reforms.
Key goals of the FfD4 include mobilizing greater volumes of capital at lower costs and reforming the international financial architecture to support the 2030 Agenda for Sustainable Development and meet the urgent needs of developing nations.
Central America
Migrants stranded in Panama amid US Policy crackdown and Darién gap barriers
Migrants who once dreamed of reaching the United States are now forced to head back south after the arrival of President Donald Trump and stricter immigration policies. Many are stranded in Panama, caught between the Darién jungle barrier and the high costs of crossing the Caribbean Sea.
In Miramar, a small coastal town in Panama, dozens of migrants—mostly Venezuelans—wait for a chance to continue their journey to Colombia. Private boat rides to the border are out of reach for many, with fares reaching up to $260 per person.
“Here we’re stopped by the sea and the money. If it were a road, we’d already be in Colombia. But paying for three tickets for me and my children is impossible,” lamented Marielbis Eloina Campos, a 33-year-old Venezuelan traveling alone with her four young children after waiting a week in Miramar.
Campos left Brazil in 2023 and crossed the dangerous Darién jungle alone with her children, one carried on her back. The journey took six days, and she recalls one child nearly drowning while crossing a river. Despite the risks, she reached Mexico City, where she stayed over a year waiting for an asylum appointment via the CBP-One app. However, its cancellation under the Trump administration forced her to give up and return to Brazil.
“Mexico is torture for us migrants. I feared my children would be kidnapped,” said Campos, who pleaded for help to continue without being chased as if immigration authorities were “a mafia.”
Due to the high cost of private transport, Panama organized a humanitarian trip that transported 109 migrants from nine nationalities from Colón to the Colombian border aboard an official boat of the National Aeronaval Service (Senan). Another similar operation is expected soon.
Panama’s president, José Raúl Mulino, expressed concern about this reverse migration flow:
“I am worried that the number of people moving from north to south is increasing,” he said this month.
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