Central America
Central America’s biggest mine faces closure over tax spat
| By AFP | Francisco Jara |
Rising up through the lush vegetation of Panama’s Caribbean coast, a 125-meter chimney serves as a beacon for helicopters approaching the largest mine in Central America, which faces closure next week over a contract dispute.
Gigantic 400-tonne trucks slowly wind around the stepped slopes of a massive gash in the earth one kilometer wide, the ochre and grey of the copper mine standing in stark contrast to the verdant jungle surrounding it.
The activity could grind to an expensive halt in a matter of days.
Canadian mining giant First Quantum Minerals has until next Wednesday to sign a new contract with the government, which is demanding the company multiply the taxes it pays by 10.
If the parties do not agree, the disagreement could halt the work of a mining project considered the largest private investment in Panama’s history, contributing four percent of the country’s GDP and 75 percent of export revenues.
“We have been given a deadline to sign the new contract by December 14, to accept the new terms,” First Quantum’s manager in Panama, Keith Green, who is Scottish, told AFP.
“We intend to reach an agreement, but negotiations are a bit deadlocked,” he added.
First Quantum, one of the largest copper miners in the world, began commercial copper production at the site in Donoso in 2019, through its subsidiary Minera Panama.
It has spent $10 billion on earthworks, construction buildings to house more than 7,000 employees, the purchase of heavy machinery, a power plant, a port for deep-draft merchant ships, access roads, and re-forestation plans.
‘Fair income’
President Laurentino Cortizo in January announced plans to toughen the conditions of the mining license, with a new contract that would oblige the mining company to pay “at least” $375 million to Panama annually — ten times what it is currently paying.
“Panama has the inalienable right to receive fair income from the extraction of its mineral resources, because the copper is Panamanian,” he said.
This mine is “the biggest in Central America,” producing 300,000 tons of copper concentrate per year, said Green.
The deposit, discovered in 1968, lies on the Caribbean coast, 240 kilometers by road from the capital Panama City.
The company, listed on the Toronto Stock Exchange, built the Punta Rincon International Port next to the mine to transport the copper by ship, due to a lack of roads connecting the Colon port, 40 kilometers (25 miles) away.
Despite the uncertainty over the mine’s future, activity has not slowed and the company has continued to invest in the site.
A new 200-tonne drilling rig — as tall as a three-story building — was inaugurated in a ceremony on Tuesday, causing heavy air traffic.
Helicopter pilot Oldemar Arauz explains that most officials visiting the mine prefer the one-hour air trip to the four-hour drive on a narrow road from the capital.
The drilling rig, made in the United States by the Swedish company Epiroc, cost $6 million, and was transported to the mine in 10 trucks.
“Latin America has 200 of these drills, 50 in Chile and now three in Panama,” said Epiroc’s Latin America manager Hans Traub.
The drill was assembled by Chilean engineer Alex Gonzalez, who previously worked in Chuquicamata, the world’s largest open pit copper mine, situated in the Atacama desert, which has been operating since 1915.
Central America does not have the same mining tradition seen further south. Mining is illegal in Costa Rica and El Salvador, and while there is much potential for growth in Panama, the industry’s future is now hanging in the balance.
Central America
OAS urges swift recount in Honduras as election results remain uncertain
The Organization of American States (OAS) electoral observation mission in Honduras reported findings of a “lack of expertise” and “delays” in the vote-counting process, but stated that it found no indications that would cast doubt on the results of the November 30 general elections, according to a report presented to the organization’s Permanent Council.
The delay by electoral authorities in releasing the final results “is not justifiable,” said former Paraguayan foreign minister Eladio Loizaga while reading the report.
Honduras marked two weeks on Monday without knowing who its next president will be, following elections in which conservative candidate Nasry Asfura, backed by U.S. President Donald Trump, holds a lead of less than two percentage points over fellow right-wing contender Salvador Nasralla.
Accusations of fraud have dominated Honduras’ political landscape since polls closed on the last Sunday of November.
In addition to Nasralla’s complaints, the current government led by leftist President Xiomara Castro has described Trump’s support for Asfura as an “electoral coup.”
The U.S. president has warned of “serious consequences” if the current results were to change and strip Asfura, a 67-year-old businessman, of his lead.
Although more than 99 percent of the votes have been counted, nearly 2,800 tally sheets contain “inconsistencies” and must be reviewed through a special recount, the National Electoral Council (CNE) said.
“The Mission urgently calls on the electoral authorities to immediately begin the special recount and to pursue all possible avenues to obtain official results as quickly as possible. The current delay in processing and publishing the results is not justifiable,” the head of the OAS mission told members of the organization.
Central America
Panama seizes over three tons of drugs hidden in Caribbean port container
Panama’s National Air and Naval Service (Senan) reported on Sunday the seizure of more than three metric tons of drugs that were concealed inside a shipping container at a port terminal on the country’s Caribbean coast.
According to a statement posted on X, Panamanian aeronaval authorities confirmed the confiscation of 3,205 packages of a suspected illicit substance hidden inside a container in transit through Panama, at a port facility in the Caribbean province of Colón. Each package typically weighs approximately one kilogram.
Earlier this week, Senan agents also seized an additional 2.2 metric tons of drugs and arrested five individuals, including a Colombian national, in separate operations linked to drug trafficking activities.
Panama serves as a major transit route for drugs produced in South America and destined mainly for the United States — the world’s largest consumer of cocaine — and Europe. According to official figures, Panamanian authorities seized approximately 80 metric tons of illicit substances in 2024.
Central America
Honduras election crisis deepens as CNE president denounces intimidation attempts
Tegucigalpa remains engulfed in a deep post-electoral crisis, marked by the absence of final results from the general elections held on November 30. On Thursday, the presiding counselor of the National Electoral Council (CNE), Ana Paola Hall, publicly denounced acts of intimidation that she warned could jeopardize the final phase of the process.
Following a meeting with the G-16+ diplomatic corps, Hall expressed concern over two specific incidents: a call by former president Manuel Zelaya summoning supporters of the Libre Party to gather outside the INFOP facilities—where electoral records and materials are being safeguarded—and a statement issued by the Permanent Commission of Congress accusing her and counselor Cossette López of alleged electoral crimes, an action she described as “baseless and outside their jurisdiction.”
Hall reaffirmed her institutional commitment and warned that she will not allow interference in the announcement of the results. “Honduras comes first,” she emphasized, underscoring her intention to defend the electoral process as a cornerstone of democracy.
Meanwhile, the preliminary results place Nasry ‘Tito’ Asfura, candidate of the National Party, in the lead with 40.52%of the vote, followed closely by Salvador Nasralla of the Liberal Party, with 39.48%. The ruling party’s candidate, Rixi Moncada of Libre, is in third place with 19.29%. Around 0.6% of the tally sheets—many of them showing inconsistencies—have yet to be reviewed.
The Organization of American States (OAS) called an extraordinary session of its Permanent Council to analyze the situation, while civil organizations and governments such as Paraguay’s urged respect for the popular will.
Honduran President Xiomara Castro accused the United States, and specifically former president Donald Trump, of obstructing the process, while also denouncing threats from gangs against voters aligned with her party.
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