W5 visits Panama as protests rage against Canadian-owned mine

W5: Panama's War with Canada Avery Haines investigates an uprising that was triggered by the government of Panama's 20-year mining concession with a Canadian company.

W5 visited Panama as mass protests raged against a Canadian-owned mine that has now been ordered close.

Known as Cobre Panama, the massive copper mine has been the target of widespread demonstrations since October, when Panama’s government signed a contract allowing it to operate for at least 20 more years.

“The Canadian government promotes itself as really aware of the environment,” environmental biologist Guido Berguido told W5 at a protest. “We cannot believe that a Canadian company would do this to our national resources.”

Owned by a subsidiary of Canada’s First Quantum Minerals, the sprawling 13,000-hectare, open-pit mine is bordered by jungle about 120 kilometres west of the capital, Panama City, on the country’s Atlantic coast.

Pointing to its alleged impact on the environment and water supplies, a broad coalition of Panamanians – including students, environmentalists, labour groups and indigenous communities – have protested for weeks, with police resorting to tear gas and rubber bullets as the country has ground to a halt.

“People already are feeling betrayed by all that is institutional in Panama,” a photographer, who lost an eye as police fired at protesters, told W5. “It’s not just the mining, many things are linked to corruption. People are tired of that.”

Protesters have also blockaded the mine’s access to roads and port, hobbling its operations.

“We knew from the beginning that this was their weak point,” a fisherman told W5 from a sea blockade. “We knew from the very first day that by doing our protests here, we were going to accomplish, and be successful.”

In November, Panama’s Supreme Court ruled that the government’s concession with the company is unconstitutional. The agreement would have secured Panama at least US$375 million a year, which was more than 10 times the previous deal and the largest private investment in the country’s history.

After defending the deal amid widespread opposition, Panama’s government later announced that it would shut down the mine, although the process could take years.

“The government just wants to be rich and forget about us,” a student protester told W5 from a barricaded university. “We don’t get nothing.”

The multibillion-dollar company plans to challenge the decision and is seeking arbitration to reinstate its contract or obtain damages. First Quantum says it generates thousands of jobs and contributes up to five per pent of Panama’s GDP.

“First Quantum has invested in excess of US$10 billion to build a world-class mine, port and power station in Panama,” the company said in a December press release. “The Company will pursue all appropriate legal avenues to protect its investment and rights.”