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
Costa Rica faces historic vote on lifting presidential immunity for Rodrigo Chaves
Costa Rica, a country internationally recognized for its democratic and political stability, is heading toward an unprecedented decision: whether to lift President Rodrigo Chaves’s immunity so he can face a criminal trial over alleged irregular management of funds from the Central American Bank for Economic Integration (CABEI).
On Wednesday, the Legislative Assembly formed a commission of three lawmakers to analyze the accusation against the president, which was forwarded earlier this month by the Supreme Court of Justice. The commission has 20 days, extendable for another 20, to issue a report so that the full Assembly can vote on whether to lift the president’s immunity.
Lifting the immunity would require 38 votes — two-thirds of the legislature — which is largely composed of opposition parties.
If immunity is removed, prosecutors would be able to continue their investigation and potentially question the president. If the motion fails, the case would return to the judiciary and remain pending until Chaves’s term ends in May 2026.
Since the country’s last civil war in 1948 and the abolition of the army later that year, Costa Rica has held uninterrupted elections, every president has completed their term without major issues, and none has ever had their immunity lifted — although several have faced judicial proceedings.
Central America
Honduras sees ongoing killings of land defenders and attacks on press, warns NGO
The Association for Participatory Citizenship (ACI PARTICIPA) denounced on Thursday that killings of land defenders and attacks aimed at silencing the press continue in Honduras.
“We continue to see murders of defenders of land and territory, as well as aggressions to silence the press. In 2024, there were 490 attacks and aggressions that constitute human rights violations,” said ACI PARTICIPA’s executive director, Hedme Castro, during the presentation of the 2024 Report on the Situation of Human Rights Defenders in Honduras.
Castro noted that the aggressions range “from attempts on lives, threats, harassment, intimidation, and smear campaigns, which have become very frequent, to obstruction of work, surveillance, and criminalization.”
She highlighted that, although only seven defenders were killed in 2024 compared to 24 in 2023, “last year we saw a significantly high number of women murdered, and cases of missing children.”
Moreover, Castro criticized the authorities for failing to address the violence. “There is no response from the authorities to reduce the violence in the country; in fact, I believe that the ‘fathers of the nation’ (members of Parliament) are not setting the right example, and the situation in the Legislative branch is actually fueling violence,” she added, referring to frequent violent incidents in Congress.
The ACI PARTICIPA report also notes that the government led by President Xiomara Castro has made “an important effort over the past two years to improve citizens’ access to basic rights, helping to cushion the effects of economic deterioration, although a decent standard of living has yet to be achieved for the majority of Hondurans.”
Central America
Daniel Ortega’s last historic sandinista ally detained in Managua
Former Sandinista revolutionary commander and presidential economic adviser Bayardo Arce Castaño was arrested on Thursday in Managua for alleged irregular transactions involving state-owned assets, according to local media reports.
The arrest was carried out by agents from the Special Operations Directorate of the Police, who raided his residence in the southern part of the Nicaraguan capital. The Attorney General’s Office (PGR) is investigating Arce for “transactions and/or negotiations” that, according to authorities, do not comply with current legal standards.
Arce, 76, was one of the nine historic commanders of the Sandinista National Liberation Front (FSLN) who led the overthrow of dictator Anastasio Somoza in 1979. Since 2007, he had served as the economic adviser to dictator Daniel Ortega, and was the last of the historic commanders still aligned with the regime.
The Attorney General’s Office accused Arce of contempt after he refused to appear for questioning about properties registered in his name. Authorities allege that Ricardo Bonilla, Arce’s assistant, was also involved in questionable financial dealings and was jailed after failing to comply with a summons.
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