The new bill not only repeals that contract but extends a moratorium on all concessions for mining activities until Panama’s Code of Mineral Resources is reformed
Demonstrators tear down a police barricade during a protest against a recently approved mining contract between the Panamanian government and Canadian mining company First Quantum, in Panama City, on Oct. 31.Facing a second week of impassioned, nationwide protests, Panama’s National Assembly has nearly passed a new law revoking a controversial mining contract in an environmentally vulnerable part of country.
Before legislators debated the extraordinary measure, Cortizo first proposed a national referendum on the contract. Eight lawsuits were also filed with Panama’s Supreme Court arguing it was unconstitutional. Critics warned using a new law to revoke the contract could leave the government liable to legal action from Minera Panama. If, however, the Supreme Court declared the contract unconstitutional, lawyers said it would be annulled without the risk of possible multi-million dollar lawsuits.
The mine is “in the middle of a jungle,” according to Minera Panama’s own contractor, Jan De Nu Group. In particular, it lies in Panama’s share of the Mesoamerican biological corridor, an important migratory route which studies estimate contains up to 10 per cent of all known species.
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