Following weeks of crippling protests over the Cobre Panama mine's environmental impact, Panama's Supreme Court in November 2023 ruled that a concession contract signed by former president Laurentino Cortizo's government was unconstitutional.
Cobre Panama is is controlled by Canada's First Quantum Minerals.
In response, First Quantum initiated international arbitration proceedings seeking $20 billion in compensation.
But in recent weeks both sides have said they want to negotiate resuming operations at the mine.
"After a commitment with the legal advisers of the government of Panama, First Quantum has agreed to halt the arbitration proceedings," the company said in a statement.
On March 14 it had said it was prepared to take this step.
A day before that, Panamanian President Jose Raul Mulino announced that he had authorized the firm to export the copper concentrate it had already extracted.
Mulino said a suspension of the arbitration was a condition for dialogue on reopening the mine.
And he criticized environmental advocates who oppose the reopening under any circumstances, saying the mine is important to Panama's economy and employment.
The mine had produced about 300,000 tons of copper concentrate a year, representing 75 percent of the country's exports and about five percent of its national economic output.
fj/dw/jgc
Related Links
Our Polluted World and Cleaning It Up
| Subscribe Free To Our Daily Newsletters |
| Subscribe Free To Our Daily Newsletters |
