Media Contact:
Lilian González Guevara, Executive Director of the Centro de Incidencia Ambiental, lgonzalezguevara@ciampanama.org
This Wednesday, the Panama Is Worth More Without Mining movement, the Technical Working Group on Mine Closure of the UICN Panamanian Committee, community leaders from Donoso and Omar Torrijos, and allied organizations expressed their rejection of the Panamanian Government’s proposal for the eventual reopening of the Cobre Panamá mine under an “orderly and self-financed closure” scheme, which they described as yet another betrayal of the general public and violation of the rule of law.
The proposal, presented in a report by an Interministerial Commission on September 30th, calls for mining operations to restart in order to generate funds to finance the mine’s closure. “Talking about a closure process that is self-financed by the mining operation over decades […] amounts to resuming mining to generate funds to finance a sham closure,” the organizations argued. The report does not specify how long this new phase of operations would have to continue, meaning that it could go on for decades.
The organizations also question the legal implications of the proposal. The proposal supports soliciting a legal analysis and opinion from the Attorney General to determine if reopening is compatible with the 2023 Supreme Court ruling declaring the mine contract unconstitutional and the Mining Moratorium Law. “The 2017 and 2023 rulings established, among other things, the absence of a public bidding process and an updated EIA, and established obligations related to the Escazú Agreement, human rights, and environmental protection. […] These cannot be ignored through a new contractual arrangement or by using different language to refer to a new mine concession,” they warned. “There is no legal way to reactivate the project without violating the substantive provisions of the ruling and the moratorium.”
The organizations noted that the path toward permanent closure has already been established by the government through Cabinet Resolution No. 19 from February 27, 2024, which sets forth the framework and steps for implementing a Permanent Closure Plan for Cobre Panamá. The project also includes a “closure and abandonment plan” outlined in the Environmental Impact Study approved in 2011, as well as a bond for $157 million, valid through 2029, to cover closure, post-closure, and contingencies.
They also reject the idea that arbitration proceedings should influence the State’s decisions. “The 2023 ruling established that the risk of potential arbitration should not prevent the exercise of constitutional oversight and questioned why a contract had been renegotiated that ‘made the same mistakes.’ […] The future of the mine has direct implications for frontline communities and the country, and what they are seeking to do involves another round of negotiations behind the backs of the public and communities.”
Water, ecosystems and communities would bear the biggest costs of a potential resumption of operations. “It is a fallacy to promise ‘zero costs’ for an activity whose impacts on water, ecosystems, health, life, and the human rights of communities and future generations are incalculable and impossible to compensate,” they stated. “A new start to mining would involve expanding the tailings management facility, generating more mine waste, and increasing the risks of acid mine drainage.” They also note that independent water quality studies commissioned by the Ministry of the Environment—which were not taken into account in the conclusions found in the government’s own audit of the mine—have already detected heavy metals in water sources near the project.
The participating sectors call on the government to carry out a definitive, safe, and orderly closure, with transparency and citizen participation, in accordance with the 2024 Cabinet Resolution No. 19, and to strengthen the Panamanian State’s defense in international arbitration proceedings. They also urge the president to reject the interministerial proposal, which they described as yet another violation of the rule of law, human rights and the wellbeing of present and future generations.