

A report by the American Bar Association analyses the recent closure of the Cobre Panamá copper mine in Panama. Following the Supreme Court of Panama's ruling that the multi-year contract with First Quantum was unconstitutional, the government announced its plan for the mine's immediate and definitive closure. Several issues were revealed regarding this contract, including having been negotiated and signed without adequate transparency and without proper public consultation. There were significant environmental concerns related to the operations of the Cobre Panamá mine, and the contract did not include measures needed to mitigate this, leading to such legal challenges. Furthermore, the working conditions at the Cobre Panamá mine were reportedly poor, with issues such as anti-union policies, low wages, and unsafe working conditions being rampant. This led the contract to be highly criticised for its enabling of labour rights violations. The mining industry is significant for Panama's economy, contributing 7% to its GDP and accounting for 1% of global copper output. However, the closure aims to address the outdated Mineral Resources Codes, inadequate inspections, and poor labour conditions highlighted in the 2020 IGF Mining Policy Framework Assessment. The mine's closure will result in approximately 40,000 job losses, and the government has yet to announce measures to mitigate this unemployment.