2023-11-26 22:48:24
The government of Panama assured Sunday that it was ready to “defend” the country’s interests, after the Canadian mining group FQM informed it that it would resort to international arbitration if the contract between them was declared unconstitutional.
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“Panama affirms that it has complied with all its obligations under international law and Panamanian law and that it is ready to defend national interests,” the Ministry of Commerce and Industry said in a statement published on the social network x.
According to the ministry, the Canadian group First Quantum Minerals (FQM) and its subsidiaries sent the government “two notifications of intention to submit arbitration requests”, within the framework of the Free Trade Agreement (FTA) between Panama and Canada, in force since 2013.
This declaration comes as the Supreme Court of Panama has been sitting in “permanent session” since Friday to render a decision on the allegations of “unconstitutionality” of the contract presented in particular by environmental defenders.
On October 20, the Panamanian Congress approved this contract which allows FQM to operate the largest copper mine in Central America for 40 years, in the Caribbean zone of the country.
Opponents contesting the legality of this contract and deploring its potential impacts on the environment have since multiplied demonstrations and roadblocks. These have led to shortages of basic products and losses of more than $1.7 billion, according to trade organizations.
AFP
The contract, signed in August between the government and FQM, replaced the initial concession agreement, declared unconstitutional in 2017 for not having been concluded after a public call for tenders or popular consultation.
FQM highlights that the mine generates some 50,000 jobs, contributes 5% of Panama’s GDP and that the contract provides for annual contributions to the State of at least $375 million, ten times more than the previous agreement. 1997.
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