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Central America’s biggest mine faces closure over tax spat

Photo: Luis Acosta / AFP

| 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.

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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.

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‘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.

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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.

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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.

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Central America

Guatemala isolates Barrio 18 leader after attacks that killed 11 police

Guatemalan authorities have placed a leader of the Barrio 18 gang in an isolated cell without الكهرباء or “privileges” after he was accused of triggering a recent wave of violence that left 11 police officers dead, the government said on Sunday.

Members of Barrio 18, which is designated as a “terrorist” organization by both the United States and Guatemala, carried out the killings on January 18 in retaliation for the government’s takeover of three prisons that had been under the control of inmates linked to the group.

In response to the attacks, President Bernardo Arévalo declared a month-long state of siege, arguing that gang members were seeking better conditions in prison or transfers to lower-security facilities.

In a message posted on X alongside photographs, Arévalo announced the isolation of Aldo Dupie, also known as “El Lobo,” one of the gang leaders who allegedly directed the uprisings.

Images released by the government show Dupie inside a small cell with narrow windows, built from metal containers, in a secured area of the Renovación I prison in southern Guatemala — the same facility where the hostage-taking riot took place.

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With a shaved head and a stern expression, the gang leader appears alone and in handcuffs, according to the photographs.

Guatemala’s prison system said the “new area,” protected by metal fencing and barbed wire, will house high-risk inmates who will remain without privileges or electricity.

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Sports

Shakira ignites El Salvador with near sold-out residency at Mágico González Stadium

The recently renovated Jorge “Mágico” González Stadium is rolling out the red carpet for Colombian superstar Shakira, whose string of concerts has sold out almost entirely, confirming the powerful bond between the artist and Salvadoran fans.

The scale of the experience begins as soon as attendees arrive at the venue. Outside the stadium, organizers have installed several photo spots so concertgoers can capture a souvenir from the major event.

Fans attending the Las Mujeres Ya No Lloran World Tour will witness a top-tier visual production, where technology and robotic lighting effects will shape an atmosphere that shifts dramatically from one segment of the show to another — moving from the intensity of ’90s rock to the festive explosion of urban pop.

Security and crowd management have been top priorities, with a coordinated operation aimed at ensuring smooth entry and exit, allowing spectators to focus solely on enjoying hits that have defined generations.

Beyond the music, the event marks a milestone for the country’s live-entertainment industry, positioning El Salvador as a destination capable of hosting artist residencies once reserved for cities such as Las Vegas or London.

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The excitement is already visible across the capital: hotels are at full capacity and local businesses are riding the wave of enthusiasm sparked by the latest songs from the Colombian star.

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Central America

Salvadoran fans plan birthday surprise for Shakira at historic show

The president of Shakira’s Fan Club in El Salvador was interviewed by Diario El Salvador on Saturday as she made her way to her entrance gate at Jorge “Mágico” González Stadium, ahead of the historic concert the Colombian superstar is set to perform in the country.

Before the first of the five shows that make up Shakira’s Salvadoran residency, the fan leader revealed that supporters had prepared a special surprise for the singer, who turned 49 on February 2.

“Today I’m here around the stadium with the props we made for her celebration, with postcards and her songs. We also have kits ready to sing ‘happy birthday’ to our She Wolf,” she said.

She explained that the group used social media to ask fans seated in the Ultra Platinum and Platinum sections to find them and pick up birthday pennants, party headbands, balloons and whistles. The idea is to sing “happy birthday” while Shakira introduces her band, offering what they describe as a special Central American welcome.

“For me, she has been a megastar since the first time I saw her in 1996. I saw her again in 2006, here at the stadium. Last year we traveled to Colombia three times to see her, and today I’m beyond excited that she chose El Salvador,” the fan said.

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She added that visitors from across Central America and other countries have traveled for the concerts and will also have the opportunity to discover the country. “I’m very excited about everything she makes us feel,” she said.

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