Panama’s government recently brought a halt to First Quantum Minerals’ Cobre Panama Project after ruling the contract between Panama and First Quantum Minerals to be unconstitutional. This is a major setback for the copper mining project, which was projected to create some 7,000 jobs and span the course of a decade.
The unforeseen ruling impacts the copper-rich land promised to First Quantum Minerals. Financial accounts associated with the Cobre Panama Project have already taken a hit due to the constitutional conflict. The ruling is all the more important as it comes from the Supreme Court of Justice, the highest judicial body in the country. In their decision, the court found that parts of the agreement between Panama and First Quantum Minerals violated the “public interest” by overruling the jurisdiction of local political groups.
This ruling is seen as a major tragedy for the people of Panama, who have potentially lost thousands of jobs and the potential for a major economic boost. Although the ruling sets a concerning precedent for international businesses, the people of Panama are ultimately the most affected. There is much uncertainty as to what will happen next, as it is unclear how First Quantum Minerals will respond and whether they will be able to overcome the obstacle.
The fallout of the ruling on the Cobre Panama Project is not yet fully known, but it has certainly complicated the situation. It has also raised some deep concerns amongst businesses and citizens alike, as to what this could mean for future international agreements.
It remains to be seen how First Quantum Minerals will navigate this troubling context, although the prospects seem grim. The people of Panama will now be holding their breath as to how the multinational copper miner deals with the decisions of their Supreme Court of Justice.
