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
U.S. and Regional Allies Back Panama Amid Dispute With China
The United States, Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago issued a joint statement in support of Panama’s sovereignty, arguing that China’s recent actions represent an attempt to politicize maritime trade and undermine the sovereignty of nations in the hemisphere.
“We are closely monitoring China’s selective economic pressure and recent actions affecting vessels flying the Panamanian flag,” the statement released Tuesday said. “Panama is a pillar of our maritime trading system and, as such, must remain free from undue external pressure.”
The statement comes amid growing tensions surrounding the Panama Canal and the operation of key ports linked to global trade.
At the end of January, Panama’s Supreme Court invalidated the legal framework supporting the 1997 concession that granted Panama Ports Company, a subsidiary of CK Hutchison, the right to operate the Balboa and Cristóbal terminals located on the Pacific and Atlantic entrances of the Panama Canal.
The ruling followed mounting pressure from the United States to curb Chinese influence around the strategic waterway, through which roughly 5% of global maritime trade passes.
CK Hutchison, which managed the ports for nearly three decades, rejected the court’s decision and accused Panamanian authorities of illegally confiscating its assets. The company has launched international arbitration proceedings against Panama, seeking more than $2 billion in damages.
Following the court ruling, reports emerged of increased detentions and inspections of Panamanian-flagged vessels in China, actions widely viewed as retaliatory measures.
On Wednesday, China’s Foreign Ministry dismissed the joint statement as “completely unfounded and misleading,” accusing the United States of politicizing port operations and warning that Beijing would take steps to protect its interests in Panama.
Central America
International Project Tackles Gender Violence in Indigenous Communities in Panama
Efforts to combat machismo and gender-based violence in Panama’s indigenous communities are advancing through international cooperation projects, including an initiative presented this week that is evolving from women’s empowerment toward a new phase focused on educating husbands and sons.
The project, led by the organization HIAS with support from the Spanish Cooperation Agency, is being implemented in the Emberá-Wounaan indigenous territory in the Darién jungle region near the Colombian border.
Originally created to bring state services closer to remote communities, the initiative focused on access to healthcare — particularly sexual and reproductive health services — but later expanded to promote broader access to fundamental rights.
“The project emerged from the understanding that strengthening the rights of the population as a whole was essential to achieving fairer, more cohesive and inclusive societies capable of fighting poverty,” Itziar González, general coordinator of Spanish Cooperation in Panama, told EFE.
HIAS Country Director in Panama Oliver Bush explained that the initiative includes “a very strong component of empowerment for women and adolescent girls in the Emberá-Wounaan communities, aimed at recovering the historical worldview in which women have always played a fundamental role in decision-making within their communities.”
The program also includes prevention, mitigation and response mechanisms against gender-based violence, an area that will be reinforced during the project’s second phase.
“It will include a component focused on positive masculinities, where we will work with men, because men are an important factor in the prevention and mitigation of gender violence,” Bush said.
According to Bush, the initiative seeks not only to eliminate stigmas and forms of everyday sexism that are often socially and culturally ingrained in men, but also to encourage men to recognize themselves as sensitive human beings capable of contributing to healthier and more equal communities.
Central America
Guatemala’s President to Hold Private Interviews for Attorney General Candidates
Guatemalan President Bernardo Arévalo de León announced that he will privately interview the six candidates for attorney general this week, breaking with the public format used by former President Alejandro Giammattei.
Speaking during a press conference on Monday, Arévalo said the interviews would not be open to the public because he intends to question candidates about their plans to recover the Attorney General’s Office from what he described as “political-criminal networks.”
Under Guatemalan law, the president is responsible for appointing the country’s attorney general.
The position has been held since 2018 by Consuelo Porras, whose term is set to expire on May 16 after two consecutive terms marked by local and international allegations of corruption.
Arévalo is expected to select the new attorney general later this week from a shortlist recently submitted by a nomination commission.
The Guatemalan president has repeatedly criticized the Public Prosecutor’s Office, claiming it has been compromised by corrupt political interests.
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