REJECTION OF THE MINING CONTRACT IN PANAMA: A TRIUMPH FOR ENVIRONMENTAL PROTECTION

On November 28, 2023, the Supreme Court of Justice of Panama declared unconstitutional the mining contract-law that granted a concession to the Canadian company First Quantum Minerals for the exploitation of a copper deposit in the province of Coclé. This ruling, which was received with great joy by environmental and social groups that had protested for months against the project, represents an important milestone in the fight for environmental protection in Panama.

The mining contract in question, signed in 2019, gave First Quantum Minerals a period of 30 years to exploit the deposit, with a payment to the State of Panama of 1.5%20 of the value of the production. The project, which was estimated to cost about $6 billion, involved the construction of an open pit mine, a processing plant and a seaport.

Protests against the project began in 2022, when environmental and social groups denounced that it would have a significant negative impact on the environment and local communities. Protests intensified in the following months, and in October 2023, Panama's President Laurentino Cortizo announced the indefinite suspension of mining concessions in the country.

The ruling of the Supreme Court of Justice was based on two main arguments. Firstly, the judges considered that the mining contract violated the Panamanian Constitution, which establishes that the State has the obligation to protect the environment. Secondly, the judges considered that the contract was contrary to international law, which establishes that States must take measures to protect the environment.

The ruling of the Supreme Court of Justice is a triumph for environmental protection in Panama. It represents a victory for environmental and social groups that fought for months against the mining project, and sends a clear message to foreign investors that Panama will not tolerate projects that put the environment at risk.

The ruling also has important implications for the future of mining in Panama. The country has important reserves of minerals, such as copper, gold and silver. However, the Supreme Court's ruling makes it more likely that future mining projects will have to undergo more rigorous scrutiny by Panamanian authorities.

The Supreme Court ruling is also an example of how courts can play an important role in protecting the environment. In recent years, courts around the world have issued rulings that have slowed or rejected infrastructure projects that could have a negative impact on the environment. The ruling of the Supreme Court of Justice in Panama is an example of how courts can help protect the environment and promote sustainable development.

Impacts of the failure

The ruling of the Supreme Court of Justice has a series of important impacts, both nationally and internationally.

At the national level, the ruling represents a triumph for environmental protection and for the environmental and social groups that fought against the mining project. The ruling could also have an impact on the future of mining in Panama, as it could make it more difficult for mining companies to obtain concessions.

At the international level, the ruling is an example of how courts can play an important role in protecting the environment. The ruling could inspire other courts around the world to take steps to protect the environment, even in cases of infrastructure projects that have government support.

Conclusions

The ruling of the Supreme Court of Justice is an important milestone in the fight for environmental protection in Panama. The ruling represents a victory for environmental and social groups that fought against the mining project, and sends a clear message to foreign investors that Panama will not tolerate projects that put the environment at risk. The ruling also has important implications for the future of mining in Panama and for the role of the courts in protecting the environment.