Public Protests Lead to Likely Revocation of First Quantum Mining Contract in Panama Amid Environmental Concerns

Panama's National Assembly moves to repeal controversial mining contract and extend a moratorium on mining activities, as First Quantum's shares plummet by 47% following broad public dissent and legal challenges over environmental risks.

• Following a second week of nationwide protests, Panama's National Assembly is on the brink of passing a new law that repeals a controversial mining contract with Canadian company First Quantum and its local subsidiary, Minera Panama.
• This comes in addition to an extended moratorium on all mining concessions until Panama's Code of Mineral Resources is reformed.
• In response to the environmental worries and legal disputes, First Quantum's shares have seen a 47% fall since the beginning of the week.
• Critics caution that the government could face legal action from Minera Panama if a new law is used to revoke the contract. However, if Panama’s Supreme Court declares the contract unconstitutional, it could be nullified without fear of lawsuits.
• The contentious contract would have allowed for 20-40 more years of open pit copper mining across 13,000 hectares of forested land, raising concerns about threats to drinking water, the forest, and potentially the Panama Canal.

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