Cobre Panama: How a $10 billion copper mine is now sitting idle in the jungle
In December 2016, a group of mining executives embarked on a pivotal meeting at Panama’s Palacio de las Garzas, a prelude to the turbulence that would engulf the nation in anti-mining protests.
First Quantum Minerals Ltd. was there, discussing progress on their ambitious Cobre Panama copper mine, but a foreboding warning from the president hinted at looming challenges.
The project, touted as Panama’s economic linchpin, faced scrutiny over tax disputes and legal hurdles. Despite warnings, Philip Pascall, the bold leader of First Quantum, brushed off concerns, a move that would backfire dramatically.
Fast forward to today, the $10 billion mine stands dormant, a casualty of nationwide unrest sparked by a contentious tax deal.
This narrative sheds light on First Quantum’s missteps and the broader conundrum facing the mining industry amidst the global shift away from fossil fuels.
While the demand for raw materials like copper soars, opposition to mining projects intensifies, posing a grave dilemma for investors eyeing long-term commitments in uncertain jurisdictions.
The downfall of Cobre Panama serves as a sobering reminder of the delicate balance between economic development and environmental and social concerns.
As the mining sector grapples with supply constraints and geopolitical challenges, the fate of projects like Cobre Panama reverberates across industries, shaping the trajectory of the energy transition and the future of global resource supply.
SOURCE:mining.com
